It just follows.
When there is more money to spend, people buy more homes. So the latest report by the Federal Reserve indicates more reason why housing is hot, and could get hotter.
The rallying stock market and the appreciation in home values is padding American’s pockets, with the net worth of households and nonprofits hitting $98.7 trillion in the fourth quarter, according to the Federal Reserve.
In the third quarter of 2017, household net worth was $96.7 trillion, reports Fox Business and ABC News, among other sources.
Although markets have been volatile in 2018, stocks climbed in the fourth quarter of 2017, with the S&P 500 adding 10%, according to Reuters. This contributed to increasing the value of indirectly and directly held equities by some $1.3 trillion. The value of real estate rose by about half a trillion during the quarter.
While net worth increased, so did household debt. Borrowing rose at a 5.2% annual rate during the fourth quarter, compared to a 3.5% growth rate in the third quarter. ## (News, analysis, and commentary.)
Sign Up Today! Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates. You’ll see in the first issue or two why big, medium and ‘mom-and-pop’ professionals are reading these headline news items by the thousands. These are typically delivered twice weekly to your in box.
(Third party images, and cites are provided under fair use guidelines.)
Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.