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View Full Version : U.S. Household Net Worth Skyrockets to $55.6 Trillion, a new record


Regis Philbin
Mar 8th, 2007, 07:31 PM
http://news.yahoo.com/s/ap/20070308/ap_on_bi_go_ec_fi/fed_household_finances_1

Net worth of U.S. households skyrockets

By JEANNINE AVERSA, AP Economics Writer
Thu Mar 8, 5:27 PM ET

WASHINGTON - The net worth of U.S. households climbed to a record high in the final quarter of last year, boosted mostly by gains on stocks, the Federal Reserve reported Thursday.

Net worth — the difference between households' total assets, such as houses and bank accounts, and their total liabilities, such as mortgages and credit card debt, totaled $55.6 trillion in the October-to-December quarter.

That marked a 2.5 percent growth rate from the third quarter, the previous quarterly record high. Stocks gains helped fuel the increase in net worth, although real-estate gains played a role, too.

For all of last year, households' net worth rose by 7.4 percent, a slower pace than the 7.9 percent increase registered in 2005.

Household debt, meanwhile, grew by 8.6 percent in 2006, down from a 11.7 percent increase in the prior year. The Fed said this deceleration "was accounted for by much slower growth of home mortgage debt."