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A growing number of low-income households are leveraging cryptocurrency gains to secure larger mortgage, according to a report released by economists at the U.S. Treasury’s Office of Financial Research. The November 26 <a href="https://www.financialresearch.gov/briefs/files/OFRBrief-24-08-crypto-exposure-and-household-financial-outcomes.pdf" rel="noopener noreferrer nofollow">report</a> highlights how the financial landscape is shifting, with crypto sales enabling bigger down payments and increased borrowing power in economically disadvantaged areas.
The study, authored by researchers Samuel Hughes, Francisco Ilabaca, Jacob Lockwood, and Kevin Zhao, revealed a significant 250% rise in mortgage ownership among low-income households in high crypto-exposure zip codes. These households saw their average mortgage balances soar by 150%, climbing from $172,000 in 2020 to $443,000 in 2024.
“Zip codes with the highest crypto exposure experienced the largest uptick in mortgage and auto loan originations, reflecting how crypto profits are reshaping financial opportunities for these communities,” the researchers noted.
<h2 id="span-style-font-weight-400-debt-to-income-ratio-for-mortgage-rises-span">Debt-to-Income Ratio for Mortgage Rises</h2>
The study identified “high-crypto” areas as those where more than 6% of households reported a <a href="https://thecoinrise.com/irs-prepares-for-surge-in-crypto-tax-crime-cases/" rel="noopener noreferrer nofollow">crypto-related tax event</a>. In such areas, low-income households also showed elevated debt-to-income ratios for mortgages, which could <a href="https://thecoinrise.com/peter-schiff-blames-the-us-government-for-financial-crisis/" rel="noopener noreferrer nofollow">signal heightened financial risk</a> in the long term.
Despite these risks, delinquency rates have so far remained low, suggesting that households are managing their debts effectively for now.
However, the economists expressed concern about the future, emphasizing that rising leverage among low-income households could pose risks if economic conditions deteriorate or if the volatile cryptocurrency markets experience a significant downturn.
<h2 id="span-style-font-weight-400-a-growing-debt-landscape-span">A Growing Debt Landscape</h2>
The findings align with broader trends in U.S. household debt, which reached a record $17.9 trillion in the third quarter. This is driven by increases in mortgage, auto loan, credit card, and student loan balances, according to the Federal Reserve Bank of New York.
The report concludes that while there is little evidence of financial distress in households exposed to crypto, the potential for systemic risks remains. If economic pressures mount, the combination of high leverage and increased reliance on volatile assets could create significant challenges for low-income families and financial institutions alike.
The post <a href="https://thecoinrise.com/crypto-gains-fuel-mortgage-growth-in-low-income-households-treasury-report/" rel="noopener noreferrer nofollow">Crypto Gains Fuel Mortgage Growth in Low-Income Households: Treasury Report</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Crypto Gains Fuel Mortgage Growth in Low-Income Households: Treasury Report

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