Largest Increase in Household Debt in Four Years
Household debt rose at a seasonally-adjusted annual rate of 1¼ percent in the second quarter, according to the Federal Reserve Flow of Funds Report released Thursday. This was the largest increase since the first quarter of 2008 but only the second increase in the past 17 quarters. Auto and student loans increased while home mortgage debt declined.
Consumer credit rose at an annual rate of 6¼ percent in the second quarter, the seventh straight quarterly increase.
Household net worth was $62.7 trillion at the end of the second quarter of 2012, about $300 billion less than at the end of the first quarter.