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(Bloomberg) -- US household wealth rose to a fresh record in the third quarter, fueled by a stock-market rally ahead of the presidential election.

Household net worth increased nearly $4.8 trillion, or 2.9% from the prior quarter, to $168.8 trillion, a Federal Reserve report showed Thursday. The value of Americans’ equity holdings rose $3.8 trillion. The value of real estate eased by almost $200 billion after sizable advances in the first half of the year.

In the third quarter, investors benefited from a stock-market rally in anticipation of interest-rate cuts from the Fed and that Donald Trump would return to the White House next year. Since his victory in the Nov. 5 election, the S&P 500 has climbed to new highs amid expectations that the president-elect will enact pro-business policies.

Households have been the main driver behind robust economic growth in recent years, as healthy balance sheets and strong wage growth have supported resilient consumer spending. That said, economists generally expect a moderation in demand against a backdrop of still-elevated borrowing costs and a higher cost of living.

The Fed’s report showed that consumers increased their borrowing at a faster pace last quarter, while business borrowing cooled.

Business debt outstanding increased at a 3% annualized rate, while consumer non-mortgage credit rose at a 2.5% pace. Mortgage debt climbed 3.1% for a second quarter. In the public sector, state and local government debt grew at a slower rate.

Household liquidity picked up to a record. Deposits held by households and nonprofit organizations, which includes savings and checking accounts and money market funds, rose by $379.5 billion to $18.9 trillion.

--With assistance from Reade Pickert.

(Adds graphic, consumer and business borrowing)