During the recession and the economy that we have going on today, there has been a lot of household debt. Now since the beginning of the recession the market has seen a gain in the household industry. The Household debt went up 0.3%, usually it was at a 7% annually but judging from the recession this is a big deal. Household has been on a decline but now it has gradually picked up.
Mortgage debt fell 1.5%, which was the smallest decline since the end of 2009. The decline could come from some combination of declining mortgage activity, home loans getting paid off or banks forgiving debt. Someone from the Washington Post said that “Aggregate mortgage credit will continue to decline until home sales pick up, recent job creation and declines in the unemployment rate bring that date closer into view, but the housing market still has a long way to go to return to normalcy.” Americans also are wealthier, at least on a quarterly basis. Household net worth climbed by $1.2 trillion as the stock market improved, which more than offset the declines in the value of their homes. Household real estate was worth $15.96 trillion, down roughly a third from its 2006 peak. U.S. households had a record-low 38.4% of the equity in their homes, down from nearly 50% in 2007.
The biggest accumulation in debt on a percentage basis came from the federal government, where debt shot up 13.1%. Non-financial businesses accumulated 4.6% more debt, while state debt fell by 1%. Financial debt, whether from banks, insurers or government-sponsored mortgage giants like Fannie Mae and Freddie Mac, dropped 4.4%, marknig the 12th quarterly decline in a row. At the end of 2011, the level of domestic nonfinancial debt outstanding was $38.3 trillion, of which household debt was $13.2 trillion. Nonfinancial business debt made up $11.6 trillion, and total government debt accounted for $13.5 trillion.