·
Growth in credit market debt owed by the household sector jumped at a
13.3% rate last quarter, the strongest rate in a year. A 15.5% (13.2%
y/y) jump in mortgage obligations lifted the figure but consumer credit
also surged at an 8.7% rate (4.2% y/y), the strongest this year. These
gains powered overall domestic nonfinancial debt growth to its fastest
of the year, 9.8% (9.2% y/y)
· Growth in the federal government debt also was firm at 6.9% y/y while non-financial corporations' debt grew a faster 7.7% y/y.
· Household sector asset values rose 12.8% y/y due to a 14.1% rise in the value of real estate holdings. Financial asset values rose 9.8% due to a 19.0% rise in the value of mutual fund shares but the value of corporate equities held directly rose just 3.0%.
· The net worth of the US household sector in 3Q improved 2.6% (10.9% y/y) to a record $51.1 trillion. The gain lifted net worth to a historic 5.6 times income.