Housing futures are a type of financial contract that allows investors to speculate on the future price of housing. They are similar to stock futures, but instead of being based on the price of a single stock, they are based on the price of a basket of housing-related securities. An investor can buy a housing future to bet that the future price of housing will rise (if the housing future increases in price) or sell a housing future to bet that it will fall (if the housing future decreases in value).
There are a number of reasons why investors might want to buy housing futures. One reason is to hedge against the risk of a decline in housing prices. For example, a homeowner who is concerned about the value of their home might buy a housing future to lock in a certain price for their home in the future. Another reason to buy housing futures is to speculate on the future direction of the housing market. For example, an investor who believes that housing prices are going to rise might buy a housing future in order to profit from the increase in prices.