U.S. Household Wealth Rises Largely Among High-Credit-Score Borrowers

N.Y. Fed’s reports that households carried $13.21 trillion in debt in the first quarter, up 0.5% from the previous quarter

American home equity has recently recovered, but much of this household wealth is more likely to be held by older, high-credit-score borrowers less exposed to financial shocks.

Homeownership among younger borrowers and Americans with lower credit scores has been on the decline, as tight lending standards have made it difficult for them to tap credit, new research from the Federal Reserve Bank of New York shows. Household wealth has thus moved away from this group.

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