Net worth increases for U.S. households

Rising stock market prices pumped wealth back into Americans’ pockets at the end of last year, but declining property values, slowed credit growth and a drop in corporate profits may show the influence of Federal Reserve rate increases beginning to take hold.

Household net worth rose 2 percent to $147.71 trillion in the fourth quarter of 2022 from $144.78 trillion at the end of the third quarter, the Fed reported Thursday.

The value of holdings of equities increased $2.7 trillion, while real estate values dropped by about $100 billion.

The quarterly snapshot of U.S. financial accounts also showed credit growth was slowing among households and businesses as the year ended, in the face of a sharp increase in interest rates engineered by the Fed during 2022.