(Bloomberg). — The U.S. household’s net worth soared to a new record during the second quarter, as Americans experienced an optimistic stock market and the biggest-ever rise in value for their real estate assets.

Federal Reserve reports that the household’s net worth increased 4.3% or $5.8 trillion to $141.7 trillion over the second quarter. There was a $3.5 billion increase in the equity market and a $1.2 Trillion improvement in households’ real estate holdings.

Stocks are at record heights and low borrowing costs have encouraged a flood of home purchases and eventually home price appreciation. The figures highlight how the massive support provided by the government and the Fed has bolstered Americans’ wealth. 

Equity shares as a percent of total household assets rose in the second quarter to almost 29.5%, up from 25.6% in 2019, the Fed’s report showed.

These wealth gains are not for everyone. The stock market is not a popular investment option for most Americans. Renters are also less likely to own a home due to the steep rise in property prices.

The annualized growth in net private savings was almost $2.9 trillion, after an increase of $4.8 trillion during the preceding quarter. It is due to federal stimulus measures. Consumer spending has been driven by excess savings, especially in the last quarter when consumer expenditures rose at one of their fastest rates ever recorded. 

Debt Increases

Business debt outstanding increased by $63.2 billion from the prior quarter, or at an 1.4% annualized rate, in the April to June period to a total of nearly $18 trillion.

At 9.6% annualized, federal debt rose to $24.7 trillion, or $578.8billion. As policy makers intervened in the aftermath of the epidemic to alleviate the negative economic effects of the healthcare crisis, government debt has increased. 

Without Congress approval, the federal government risks defaulting on its financial obligations.

In the second quarter, consumer credit not including mortgage debt increased by $91.2 million.

Corrections to graphic used in Thursday’s story.

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