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Wealth in U.S. jumps thanks to rising stocks and home prices

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American households are getting richer thanks to the stock and housing markets.

The collective wealth of American households climbed $1.3 trillion to $74.8 trillion in the second quarter, according to a report Wednesday from the Federal Reserve.

That’s a 1.8% jump from three months earlier and the latest record high.

The improvement in household balance sheets stems largely from gains in stock prices and housing values. Home prices rose $525 billion, according to the central bank. The value of stocks and mutual funds advanced nearly $300 billion.

The report indicates that the financial well-being of the American public continues its slow but gradual improvement from the 2008 financial crisis.

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Household debt inched up 0.2%, while home mortgage debt fell 1.7%.

However, the Fed data obscures the significant income disparity between rich and poor Americans.

Equity and housing gains typically flow to wealthier Americans who can afford those assets.

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In other words, if you’re rich enough to own stocks or a home, you richer than you were earlier this year.

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Follow Walter Hamilton on Twitter @LATwalter

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