Can Bitcoin Fix US Housing? FHFA’s Crypto Mortgage Move Gains Attention as Crisis Deepens

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Google searches for “help with mortgage” have now surged past the peak of the 2008 Global Financial Crisis, signaling mounting stress in the US housing market. Ah, the good old days of 2008, when the economy was barely hanging on by a thread, and now it seems we’re back at square one. Delightful.

Analysts are ringing the alarm bells as affordability pressures deepen, with late rent payments climbing and mortgage costs rising at a pace that would leave even the most seasoned economist gasping for air. Oh, and don’t even get us started on income growth – it’s like a snail’s pace compared to the runaway train that is mortgage costs.

Mortgage Rates Signal Shifting Economic Pressures for Crypto Markets

According to housing analyst Nick Gerli, incomes have grown a modest 21.9% since 2019. Meanwhile, mortgage costs have risen a staggering 91.9% in the same period. Quite the magic trick, isn’t it? Too bad it’s not pulling rabbits out of hats, but rather, pulling wallets out of pockets.

“Costs to buy have gone up four times faster than incomes. Not sustainable,” Gerli wrote.

Other commentators, including Darth Powell (a name that surely evokes images of a financial Sith Lord) and Neil, pointed to skyrocketing late rental payments. Homeowners too are struggling to keep up with monthly bills – as if life wasn’t stressful enough.

Late rental payments are skyrocketing

– Darth Powell (@VladTheInflator) September 16, 2025

Meanwhile, Polymarket and Barchart data show that searches for mortgage help have surpassed 2008 levels. Oh, joy. Financial stress is now spreading beyond renters to homeowners, because who doesn’t love a good financial crisis?

JUST IN 🚨: Google Searches for “help with mortgage” has now surpassed the peak of the 2008 Global Financial Crisis

– Barchart (@Barchart) September 16, 2025

As affordability collapses, home-buying activity is as muted as a library on exam day, even as credit conditions tighten like a belt after Thanksgiving dinner.

FHFA’s Crypto Experiment Pushes Adoption, But With Strings Attached

Amid all this chaos, the Federal Housing Finance Agency (FHFA) tried to pull a rabbit out of a hat in June by allowing Bitcoin and certain cryptocurrencies to count as assets for mortgage eligibility. How generous! Of course, there are strings attached, because when aren’t there?

This move applies to applicants through Fannie Mae and Freddie Mac, marking the first time the federal mortgage system has formally recognized crypto in asset assessments. Let’s all take a moment to appreciate that we’re living in the future… where Bitcoin could help you buy a house. If you follow all the rules, of course.

However, the program has limitations. Only crypto held on US-regulated custodial exchanges qualifies. Bitcoin stored in cold storage, multisig setups, or self-custody wallets? Well, that’s a no-go. Looks like Bitcoin’s core principles of self-sovereignty are out the window, in favor of government oversight. Classic. 🙄

Applicants can also not pledge these assets as collateral, because why not make it even more complicated? Instead, crypto holdings count toward net worth in the assessment process. But hey, at least it’s a start, right? Baby steps.

Critics, including self-custody expert Nick Neuman, are less than impressed.

“It looks like bitcoin held in self-custody will NOT count as an asset for consideration on home loans. This is a mistake Pulte; self-custody is fundamentally aligned w/American values. It’s trivial to prove ownership of BTC in self-custody,” wrote self-custody expert Nick Neuman.

Bitcoin financial services firm Swan echoed the sentiment. While acknowledging the move as a win, it also recognized the glaring limitations. Turns out, Bitcoin doesn’t exist in the eyes of mortgage underwriters unless it’s sitting pretty on a state-regulated custodial platform.

Bitcoin is being added to the mortgage system.

That’s a win-but don’t let it fool you.

If your Bitcoin isn’t custodied in a way the state can see, it still “doesn’t exist.”

Let’s talk about the real frontier: self-custody in a captured system 🧵👇

– Swan (@Swan) June 30, 2025

For Swan, this feels like déjà vu: first ignoring crypto, then adopting it, but only when it can be controlled. The irony is not lost on anyone.

Nevertheless, supporters believe that the FHFA’s recognition is a breakthrough, however modest. By including crypto assets without requiring them to be converted into US dollars, the agency has given digital assets a tiny foothold in one of America’s most systemically important markets. Baby steps, folks. Baby steps.

For crypto holders – particularly those who are cash-poor but asset-rich – this could open a path to qualifying for mortgages that would otherwise be as unattainable as winning the lottery. 🎰

Still, the housing crisis shows the limits of crypto’s role. The recognition came just as housing stress surged to levels unseen since 2008, and with such narrow eligibility, Bitcoin is unlikely to provide widespread relief. But it is a symbolic step in the broader trend of financial convergence, though not quite the salvation many hoped for.

In the end, crypto’s integration into mortgage credit may remain a niche tool, much like that one relative who insists on explaining blockchain at every family gathering. On the one hand, it’s progress. On the other, it’s no magic bullet for the affordability crisis that has American households in a chokehold.

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2025-09-17 14:37