A paper released by the U.S. Treasury's Office of Financial Research suggests that crypto investing may have enabled lower-income Americans to purchase homes at a higher rate compared to the general population. The research found that the rise in cryptocurrency investment in recent years was accompanied by an increase in debt, particularly mortgages, in areas with high crypto activity. However, delinquency rates in these areas remain low, indicating that there is little evidence of higher levels of distress in mortgage, auto, or credit card debt among consumers in high-crypto exposure neighborhoods. The study also revealed a significant increase in mortgages in high-crypto, low-income areas, with average mortgage balances higher than in low-income zones with less crypto activity. The findings suggest that crypto sales may have supported access to larger mortgages through bigger down payments. While the paper highlights the potential benefits of crypto investing for lower-income individuals, it also warns of the need for close monitoring during a financial downturn, as crypto investments are more volatile and could pose risks to the U.S. mortgage market.



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