Dive Brief:
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Rising selling prices of homes and stocks have made Americans wealthier than ever, the Federal Reserve reported Thursday.
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The net worth of American households rose by $1.4 trillion to $81.5 trillion between April and June. At the same time, more consumers borrowed money than during any quarter since 2008. An uptick in borrowing typically helps the economy grow.
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"People are spending more, and they're using their credit cards," said IHS Global Insight economist Ozlem Yaylaci to The Wall Street Journal. Consumer spending, he said, also helps the economy.
Dive Insight:
As home prices rise, the amount of equity Americans have in their homes rises. Higher equity levels could be a sign that more homeowners are benefiting from the economic recovery.