Household wealth grows $1.2 trillion

By Blake Ellis, staff reporter


NEW YORK (CNNMoney) -- Americans got richer in the third quarter even as home values hit the skids after more than a year of increases.

Net worth for households and individuals climbed $1.2 trillion, or 2%, to $54.9 trillion in the third quarter, according to the Federal Reserve's Flow of Funds report released Thursday.

Household wealth had tumbled in the second quarter -- sliding $1.5 trillion between April and June -- after having climbed for four straight quarters. But growth returned in the third quarter thanks to higher stock values, with the S&P rising 11% following a 12% slide in the second quarter.

Corporate equities jumped $939 billion and mutual fund shares gained $378 billion, eclipsing the $698 billion dip in real estate assets -- the first decline in five quarters.

"Today's report shows that households have continued to rebuild their balance sheets throughout Q3, although the boost to net worth was completely due to a strong recovery in the equities market," Theresa Chen, an economist with Barclays Capital, said in a note to clients. "Looking forward, we expect net worth to rise further as overall economic activity increases and the employment outlook improves."

Meanwhile, liabilities fell $7.6 billion in the third quarter, as a $64 billion drop in home mortgages was slightly offset by a $22 billion gain in consumer credit. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.45%4.49%
15 yr fixed3.89%3.91%
5/1 ARM4.21%4.20%
30 yr refi4.45%4.49%
15 yr refi3.87%3.90%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 24,581.80 -405.67 -1.62%
Nasdaq 7,644.15 -102.87 -1.33%
S&P 500 2,745.15 -28.60 -1.03%
Treasuries 2.88 -0.05 -1.61%
Data as of 10:39am ET
Company Price Change % Change
Advanced Micro Devic... 16.52 -0.59 -3.45%
AT&T Inc 32.45 0.26 0.81%
General Electric Co 12.94 -0.26 -2.01%
Bank of America Corp... 29.03 -0.37 -1.26%
Twitter Inc 44.04 -1.96 -4.26%
Data as of 10:24am ET

Sections

Apple Music's launch of a music publishing department is not a shift into signing songwriters directly. Instead, it'll allow the streaming service to work more closely and effectively with music publishers that represent songwriters. More

Even at the very top of American workplaces, people stay silent when it comes to sexual harassment. More