Household Wealth Increases Despite Heavy Real Estate Losses

The average American’s financial situation improved during the third quarter, according to data released by the Federal Reserve. The news is seen as a positive sign for the nation’s mortgage markets, which have been stressed by an elevated number of borrowers who’ve been struggling to fulfill their mortgage obligations because of deteriorating personal finances.

The U.S. central bank’s latest Flow of Funds snapshot shows that household wealth grew by 2.2 percent, or $1.2 trillion, during the July to September timeframe. With the quarterly increase, household net worth-the difference between the value of assets and liabilities-was an estimated $54.9 trillion at the end of the third quarter, as gains in stock markets offset losses in the housing sector.

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