Business News: Household wealth rises to record $83 trillion

Household wealth rises to record $83 trillion

Fueled by higher stock and home values, Americans’ net worth reached a record high in the final three months of 2014.

Household wealth rose 1.9 percent during the October-December quarter to nearly $83 trillion, the Federal Reserve said Thursday. Stock and mutual fund portfolios gained $742 billion, while the value of Americans’ homes rose $356 billion.

The typical household didn’t benefit much, though. Most of the wealth remains concentrated among richer families. The wealthiest 10 percent of U.S. households own about 80 percent of stocks.

U.S. budget deficit shrinks last month

The federal government ran a slightly smaller deficit in February than a year ago but the imbalance through the first five months of the budget year is still running ahead of last year.

The Treasury Department reported Thursday that the deficit in February was $192.3 billion, down from a deficit of $193.5 billion a year ago. For the first five months of this budget year, the deficit totals $386.5 billion, up 2.7 percent from a deficit of $376.4 billion during the first five months of the 2014 budget year.

Business stockpiles frozen in January

U.S. businesses did not add to their stockpiles for a second straight month in January as total business sales fell by the largest amount in nearly six years.

Business stockpiles were unchanged following a similar flat reading in December, the Commerce Department reported Thursday. Sales in January dropped 2 percent. That was the sixth straight monthly sales decline and the biggest monthly drop since sales tumbled 2.7 percent in March 2009 during the depths of the last recession.

Mortgage rates rose this week

Average long-term U.S. mortgage rates rose this week yet remained near historic lows reached in May 2013.

Long-term rates resumed their upward trend of recent weeks after declining last week. Mortgage giant Freddie Mac said Thursday the national average for a 30-year fixed-rate mortgage increased to 3.86 percent from 3.75 percent last week. The average rate for a 15-year mortgage, popular with homeowners who refinance, rose to 3.10 percent from 3.03 percent last week.

A year ago, the average 30-year mortgage stood at 4.37 percent and the 15-year mortgage at 3.38 percent.