An Alternative Approach to Investing in the Housing Recovery

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Though we went through a slump during the summer, the housing market's recovery has been one of the central players in the overall economic recovery. Since housing plays such a crucial role in our nation's financial health, there are plenty of reasons why an investment in that sector would be attractive. But Motley Fool contributor Jessica Alling wants you to know that there may be a better option than the traditional investments in either homebuilders or home-improvement stores. Look no further than private mortgage insurers like American International Group , Radian Group , and Genworth Financial . Jessica details the current rise in the PMIs' success and why they present attractive investment opportunities.

An alternative alternative
Banks also play a huge role in the housing market, as home loans are still very attractive to homebuyers due to their historically low interest rates. But a slowdown in new applications may mean that the banks' fee income is dropping, leaving many investors to wonder if the huge earnings reported over the past few quarters is a thing of the past. But there's good news: It's not too late. Bargains of a lifetime are still available, but you need to know where to look. The Motley Fool's new report "Finding the Next Bank Stock Home Run" will show you how and where to find these deals. It's completely free -- click here to get started.

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Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends and owns shares of American International Group and has the following options: long January 2014 $25 calls. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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