Americans' Net Worth Grew in 2006
A new report from the Fed shows that household net worth grew at a robust rate in the fourth quarter, thanks mostly to strong gains in financial instruments
This article is for subscribers only.
The housing market is in a slump. Subprime mortgage companies like New Century Financial (NEW) are struggling. And retail sales are soft. But in a surprising piece of economic news, Americans actually got richer in the last three months of 2006. The data were released on Mar. 8 by the Federal Reserve, in its report.
Household net worth—that's how rich you are after liabilities like the mortgage are subtracted from assets like the house—rose 2.5% in the fourth quarter and was up 7.4% from a year earlier.