It's not just a 6 month swing in equity, btw. It's the rate difference that worries me as well. Please read my other comments.

>you should have waited 6 months if you’re so confident in this prediction of yours.

I'm not predicting anything. I want to build a portfolio wherein I don't lose overall. Please read the post again and my other comments. I can handle the fluctuation over next 6 months. I don't want to just "handle it" though. I want to protect my assets.

I'm certainly intending to stay long term, so like you said I should come out ok in the end. I'm trying to do even better than that. Thank you for your input!

Thanks for your engagement here, btw!!

>no loss if nothing happens, profit in the hedge account if market crashes. If such an investment vehicle existed, why wouldn't I put all my money into it?

Not quite. If the hedge is perfectly placed, I wouldn't make any profit or loss OVERALL.

>if the lender you are working with would do a rate lock extension.

I did consider this, but this wouldn't be an ideal hedge. I would win only if rates go significantly up. Because of the upfront cost for locking today's rate for 6 months, I would be betting the rate goes up. I feel I can do better than that. I personally feel things may remain the same then in which case I'm essentially losing money for locking the rates.

I certainly aim to stay in the house long term and that's the main reason why I bought in this crazy market.

If financing through the builders lender falls through, I'll get my 10% that I already put in back. I don't expect financing to fall through. There's no other scenario where I'll get my 10% back.

To your second point, well I'm not trying to time the market! All I want to do is hedge against a possible loss.

If everything crashes, I make a profit in my hedge account that I'll use to neuter my ill timed house purchase.

If everything stays the same, I don't incur any additional loss.

If housing market goes up and/or mortgage rates go down, I'll consider I bought a house I wanted for a cheaper cost and/or at a lower rate, than at closing.

I think I covered all scenarios. I'm not trying to time the market. I'm just trying to build the right portfolio that doesn't make me an overall loser in 6 months.

While it's true that it's money that I've put aside for down payment:

1. If everything crashes in 6 months, my home appraisal could come at a lower price and I may have to come up with extra cash at that point. Any profit from a hedge I place will neuter that loss for me.

2. If it goes up in 6 months, I do have an emergency fund I can lean on to cover my losses in my hedge account.

It's a new build, should've clarified that.