The Federal Reserve’s latest Flow of Funds report shows Americans’ financial situation improved in the third quarter, a positive sign for the housing and mortgage markets. According to the data, household net worth grew by 2.2 percent, or $1.2 trillion, and household debt was down for the tenth consecutive quarter. Gregory Daco, senior economist for the research firm IHS Global Insight, expects household net worth to keep its momentum and provide a boost to consumer confidence and GDP growth. Daco says, since the beginning of 2010, household wealth has recovered $1.1 trillion. More here and here.