The rate of low-income households using profits from crypto investments for mortgages is on the rise

The rate of low-income households using profits from cryptocurrency investments for mortgages is increasing. According to a study by the U.S. Department of the Treasury, selling cryptocurrency assets helps many of these households have enough money for larger down payments, thus increasing their ability to secure mortgages. In areas with high exposure to crypto, the rate of low-income households purchasing homes has increased by over 250%, and the average mortgage balance has increased by one and a half times, from around $172,000 in 2020 to around $443,000 in 2024.

While the rate of late payments in these areas remains low, researchers warn that high debt levels could create financial risks in the future, especially if economic conditions worsen or the value of cryptocurrencies drops significantly. They emphasize the importance of monitoring the debt balances of these households due to their exposure to the cryptocurrency market.