American households accumulated debt at the fastest rate in the second quarter in more than four years, and total domestic debt grew at the quickest rate in 3 1/2 years, according to data released Thursday showing an increased willingness to borrow. The Federal Reserve, in its voluminous flow-of-funds report, said household debt grew at a seasonally adjusted annual rate of 1.2% in the second quarter, marking only the second increase in 17 quarters. Mortgage debt fell 2.1% in the second quarter and has shrunk in 16 out of the 17 quarters. That’s in part a function of reduced demand after the burst of the housing ... (full story)