With lending efforts focused on consumer and residential mortgage loans, credit unions have a natural interest in the financial health of America’s households. We have a similar interest at the Federal Reserve. Consumer spending accounts for more than two-thirds of gross domestic product, and residential investment - the construction of new homes makes up another 4 percent or so of GDP.
In addition, households own more than $ trillion in real estate assets, almost twice the amount they own in mutual funds and directly hold in stocks. Over the past two years, significant increases in the value of real estate assets have, for some households, mitigated stock market losses and supported consumption.