Household net worth rose 2.9% in Q2, reaching $19.1T driven by strong equity market performance (up $388B sequentially)…

… and a $130B increase in pension entitlements and life insurance reserves. Meanwhile, new household borrowing moderated for a fourth consecutive quarter…

… with mortgage debt growth of $19B posting its slowest pace since Q1/24. Income grew at over 2x the pace of debt in the quarter…

… which drove improved debt ratios. We’ll see if this turns into a trend, or if it’s a one-off blip given how wage growth has performed.

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