Household net worth jumps to $98.7 trillion

The rallying stock market and the appreciation in home values is padding American’s pockets, with the net worth of households and nonprofits hitting $98.7 trillion in the fourth quarter, according to the Federal Reserve.

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In the third quarter of 2017, household net worth was $96.7 trillion.

Although equities have been volatile in so far in 2018, stocks climbed in the fourth quarter of 2017, with the S&P 500 adding 10%, according to Reuters. This contributed to increasing the value of indirectly and directly held equities by $1.3 trillion. The value of real estate rose by half a trillion during the quarter.

While net worth increased, so did debt. Household borrowing rose at a 5.2% annual rate during the fourth quarter, compared to a 3.5% growth rate in the third quarter.