WASHINGTON: Rising home values drove a modest increase in Americans’ household wealth to a new high of $85.7 trillion in the April to June quarter.

The Federal Reserve said on Friday that Americans’ stock portfolios climbed $61 billion in value, while housing wealth increased $499 billion. Total household wealth is up from $85 trillion in the first quarter.

Rising household wealth can help boost growth by making consumers feel wealthier and more likely to spend. Economists estimate that consumer spending rises three to five cents for every dollar increase in wealth. Household spending drives about two-thirds of the economy.

Yet, greater wealth doesn’t necessarily benefit the typical family. The stock market has more than doubled since the recession ended in June 2009, which mainly benefits richer households. Approximately

10 per cent of the wealthiest Americans own 80 per cent of stocks, according to research by Edward Wolff, an economist at New York University.

The Fed’s figures aren’t adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit cards and other debts.

Americans also stepped up borrowing, a sign of confidence in the economy.