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You also become vulnerable to a lot of other attacks like SSL strpping, DNS spoofing, code injection and others.
Your network is a trusted zone and should be restricted to only clients that you trust.
I live with someone in the same house so we both use the same wifi. So this kind of information is not only available to hackers?
He knows the wep password because he set it up in the first place. Basically, if the guy is on the same network as you, he can see everything you do.
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Not only that but if he uses your Internet connection to conduct illegal activity you could find yourself in some hot water.
I suggest you upgrade to a stronger security protocol like WPA2 and change the key to something only you know.
I cover ARP Cache Poisoning in a lot of detail in one of my blogs about Session Hijacking, which is another form attack that you're susceptible to here.
Also, as pointed out by others, WEP is a terrible security protocol and I give a demonstration of how you can bypass WEP security in 3-4 minutes in another blog here.