[nostrademons]

Leverage isn't free: what you gain in returns you lose in risk. For housing, this is the risk that the bank can foreclose and take the house if you miss a payment, or that you can end up underwater and trapped in a location with no jobs if the housing market declines under your equity.

You can leverage up the same with stocks, just by buying them on margin. The risks are effectively the same: if the stock declines, the bank sells it off and seizes the collateral to cover your debt. The rates are also not that different: 5.25% vs. about 4.75% for mortgages now. People are rightfully skeptical about the risks of buying stocks on margin, but they never think much of the risk of foreclosure when buying houses on mortgage.