December 12, 2019 / 5:12 PM / 8 months ago

U.S. household net worth $113.8 trillion in third quarter 2019

FILE PHOTO: A townhouse for sale that is currently under contract is seen in Bethesda, Maryland December 30, 2015. REUTERS/Gary Cameron

WASHINGTON (Reuters) - Rising real estate prices helped drive U.S. household wealth to $113.8 trillion in the July through October period, a report by the Federal Reserve showed on Thursday.

That compares to an downwardly revised $113.3 trillion net worth for households in the second quarter of 2019.

The U.S. economy is experiencing its longest expansion on record and households and households are benefiting from unemployment near a 50-year low.

On Wednesday, the Fed kept interest rates unchanged after cutting them three times this year and reiterated it now plans to keep rates where they are for the foreseeable future. The U.S. central bank reduced borrowing costs this year to boost the economy in the face of slowing global growth and the ongoing U.S.-China trade war.

Household borrowing rose at a 3.3% annual rate in the third quarter, according to the Fed’s report, down from an unrevised 4.3% growth rate in the second quarter of the year.

Elsewhere in the central bank’s report, liquid assets held by non-financial firms were $4.7 trillion versus a revised $4.4 trillion in the April-June period.

Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama

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