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April 15, 2006
Hedge Your House?
Of course the exchanges have these products targeted to homebuilders and other companies affected by bubble uncertainty, but individuals could use some hedging, too. What bubble-area homeowners need is a smart mortgage broker who can include options for managing your bubble exposure as part of the loan package.
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Posted on April 15, 2006 06:40 AM by Mortga104.
Filed in Mortgage Calculator under mortgage brokers.
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Comments
Yes well there is always the option of shorting bonds if you think interest rates are going to rise. You can do this using cfds. Best to use a dynamic systematic approach though
Posted by: Peter at February 17, 2007 04:05 PM
Futures and options on real estate haven't started active trading yet, so it will be a while before you're actually able to use them to hedge your individual bubble risk. (I have to admit, I kind of like the idea of separating the two transactions "pay for a house to live in" and "speculate on real estate price trends".)
Posted by: Don Marti at April 15, 2006 02:49 PM