{"id":6199,"date":"2024-12-23T08:00:03","date_gmt":"2024-12-23T13:00:03","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6199"},"modified":"2024-12-23T08:00:06","modified_gmt":"2024-12-23T13:00:06","slug":"a-striking-trend-crypto-is-connecting-younger-generations-with-mortgages","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/a-striking-trend-crypto-is-connecting-younger-generations-with-mortgages\/","title":{"rendered":"A \u201cStriking\u201d Trend: Crypto Is Connecting Younger Generations With Mortgages"},"content":{"rendered":"\n
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U.S. Treasury economists have found what they call a \u201cstriking\u201d trend. People of modest incomes who live in places where crypto is popular are getting mortgages.<\/p>\n\n\n\n

In short, they found that ordinary people (those in households making under $50K yearly) are using crypto gains to save for down payments<\/a>. In a time when the median price of a home for sale is over $400K, young people who weren\u2019t born with wealth have to be creative. How\u2019s this working out for them?  <\/p>\n\n\n\n\n\n\n\n

So Far, So Good<\/h2>\n\n\n\n

The economists identified \u201chigh-crypto\u201d zip codes as areas where 6%+ of households reported cryptocurrency transactions on federal taxes. (The researchers refer to average or \u201cmid-crypto\u201d areas as zip codes where 2-6% of households are reporting crypto sales on their tax returns.)<\/p>\n\n\n\n

The association between using crypto and higher rates of mortgage borrowing is \u201cespecially striking among low-income households\u201d in these areas, they stated. By striking, they\u2019re talking more than 250%.<\/p>\n\n\n\n

Yes, that\u2019s striking.<\/p>\n\n\n\n

These same areas have higher debt balances. Including, of course, mortgages. In fact, people in areas of high crypto activity have much higher mortgage debts overall than people in lower- or even middle-income areas where there\u2019s less interest in crypto. <\/p>\n\n\n\n

The new report suggests that \u201ccrypto households\u201d be monitored so economists understand how they\u2019ll behave in a downturn. The report also thinks younger households need specific attention. Cryptoassets, the report notes, are \u201cmore popular among younger investors.\u201d<\/p>\n\n\n\n

But for now, the report says, \u201cdelinquency rates remain relatively low.”<\/p>\n\n\n\n

Crunching the Numbers<\/h2>\n\n\n\n

The researchers looked at tax and mortgage data spanning four years: Jan. 2020 \u2013 Jan. 2024.<\/p>\n\n\n\n

Their analysis shows:<\/p>\n\n\n\n