Rising home prices lifts US household wealth to record $85.7 trillion; borrowing also rises

IndustriesAssociated Press

Rising home values drove a modest increase in Americans' household wealth to a new high of $85.7 trillion in the April-June quarter.

The Federal Reserve says Americans' stock portfolios climbed $61 billion in value, while housing wealth increased $499 billion.

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Americans also stepped up borrowing, a sign of confidence in the economy.

Total mortgage debt grew at the fastest level since the recession ended in 2009. Overall household debt, which includes mortgages, student loans, auto loans and credit card debt, increased at the fastest pace in a year.

The Fed's figures aren't adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit cards and other debts.