WASHINGTON (MarketWatch) - The nest egg of the typical American family is smaller now than it was seven years ago, according to Federal Reserve data released Thursday.

The inflation-adjusted net worth of the typical family increased 17.7% to $120,300 from 2004 through 2007, the Fed said Thursday in its Survey of Consumer Finances, the most detailed look at family finances available. Net worth is defined as assets minus liabilities.

"But a lot has happened" since the end of 2007, a Fed economist said. As of October, median net worth had fallen to $98,900, down 3.2% from the end of 2007 and 2% below the level reported in the 2001 survey that was conducted after the dot.com bubble burst. Since October, stock prices have fallen another 15%, while home prices have fallen at least 2%.

The Fed survey is conducted every three years. The median is a midpoint, with half of the households in the nation worth more and half worth less.

The report shows median household income growth was relatively flat from 2004 to 2007 after adjusting for inflation. Median household income stood at $47,300 per year at the end of 2007.

However, mean income (or the simple average) rose 8.5% during that time to $84,300, suggesting big income gains at the high end of the income distribution. Indeed, the average income for those in the top tenth of the income scale increased nearly 20% to $398,000, while those in the bottom fifth saw their income rise by an average of 3% ($400) to $12,300.

For those in the middle, average incomes decreased $400 to $47,300 after adjusting for inflation.

The typical family owed $67,300 in debts in 2007, up from $60,700 in 2004. The big increase came from debt on second homes. The typical family that had a mortgage owed $107,000 on their primary residence. Those with credit card balances owed $3,000. The median installment debt, chiefly auto loans, was $13,000.

A rising percentage of households were excessively indebted. In 2007, 14.7% of households were paying more than 40% of their income on debt service (including rent) up from 12.2% in 2004. More than a quarter of the poorest households were paying more than 40% of their incomes. The biggest increases in debt-service levels, however, occurred among those making more than median income, especially those at the very top.