U.S. households are 5.8% wealthier than they were this time a year ago, according to the Federal Reserve quarterly flow data released Thursday, Dow Jones reports. Analysts credited capital gains and stock market wealth for the boost.
Mutual fund holdings increased in value by $83 billion, while corporate equities rose $225 billion.
Borrowing, especially for homes, on the other hand, grew at the slowest rate since 1998.
Household assets overall were $67 trillion, an increase of $1.04 trillion since last year. Debt grew by $267 billion, to $13 trillion. Overall net worth, calculated as the difference between liabilities and assets, hit $54.06 trillion.
Although overall financial investment fell by $265 billion, in aggregate, U.S. investors collected $864 billion worth of capital gains.
Real estate holdings increased in value by $120 billion, the lowest surge in the past nine years. Owner equity hit a record low of $53.6%, compared to almost 58% in 2000.
Total debt hit 52.7% of net worth, the highest average since 2002.