Economists at the US Treasury analyzed IRS data showing that crypto ownership nearly tripled between 2020 and 2021.
Crypto and Mortgages
The report highlighted that areas with high crypto ownership saw significant increases in both mortgage and auto loans. Low-income households in these areas experienced a sharp rise in average mortgage rates and balances, suggesting crypto sales might have supported larger down payments.
Impact on Auto Loans
Auto loan debt surged to $1.6 trillion, with notable increases in high-crypto areas. This indicates that crypto earnings may have enabled more vehicle purchases.
Delinquency Rate Analysis
From 2020 to 2024, mortgage delinquency rates dropped across most markets, particularly among low-income households. Delinquency rates are currently at their lowest in 15 years, around 1.7%.
Overall, increased crypto ownership is correlated with changes in mortgage and auto loans, while delinquency rates remain stable despite rising debts.
