Household Net Worth Falls in Second Quarter

Washington, DC, Sept. 20, 2010--U.S. household wealth declined by $1.5 trillion in the second quarter, according to the Federal Reserve.

Household net worth fell to $53.5 trillion, well below the $64.2 trillion it had reached at the end of 2007.

Declines in the value of financial assets accounted for much of the decline in second-quarter net worth. Stocks were down $1.9 trillion to $14.9 trillion, more than offsetting small gains in other areas like state and local government retirement funds.

Consumers reduced debt annual rate of 2.3%, the ninth consecutive quarter of declines. Home mortgage debt fell at an annual rate of 2.25% after a 4.25% drop in the first three months this year.