hi everyone. we come to on the money. i'm becky quick. interest rates rates will be heading up soon. a clear vision, what's next for the company that has disrupted a major industry. we've talked to one of the members. give to others and to yourself. and we're talking turkey, thanksgiving is fast approaching. what the bird flu means for turkey prices, the answer my surprise you. "on the money starts right now. >> the houdsing market has long been in a slow recovery, but that could be changing with the federal reserve signaling it

could be raise interest rates. what is next for buyers and skelers diana has our cover story this week. >> jennifer trench has been shopping for a home for three months. she and her husband are first time buyers and price is paramount. >> it's definitely about affordability and convenience. >> home prices are still rising faster than income, thanks to low mortgage rates and very tight supply of homes for sale. now mortgage rates are starting to move higher, even before a potential rate hike by the federal reserve in december and that makes trench a little nervous. >> we're not going to rush into anything. but it's incentive to do it soon. we're trying to find something, probably within the next three to four-months. >> the rate move higher hasn't been that dramatic. barely a quarter of a percentage point next month.

>> people that are on the cusp, low qualification rates that will be a challenge for them. >> lots of room for storage. >> home buying, however, is more emotional than most investments. >> the changing rates doesn't really change people's behavior in terms of not doing something, but it does, you know, play on the psychy a little bit to say maybe i should move now, things aren't going to get that much better. >> after falling through much of october, mortgage applications to purchase a home suddenly jumped higher last week, in line with a move higher in rates. >> there is clearly demand for housing, the biggest head wind falling supply. home builders aren't stepping up and sellers don't want to list their homes because they're afraid they won't be able to find something else to buy. it adds up to frustrated buyers. >> we're really ready to find a place, settle down, call it our own. >> this is a little bit small. >> and slower home sales. for "on the money i'm in

washington. >> is it a good time to buy that home or if you're ready to sell should you do it now or wait. >> it is that age old question where you start thinking about is this a buyer's market or seller's markets, how would you qualify this at this point? >> for most people it's a sellers' market. there. you feeling you're putting in multiple offers. and it's tough for buyers right now, in general. >> that's the first time we've heard things like that since probably before 2007 when you had that fever pitch kind of picking up. >> you know, a lot of that is the recovery is going on and things are going quite nicely. we're still seeing home value at a very robust rate. the problem right now is low inventory that's driving up the home value. it's a good time to buy. rental rates are so high. so financially it makes a lot of sense.

hot market a place like seattle, san francisco, denver where we've heard about those stories? or does it branch out beyond that. >> of course, they are drirch by the hot markets -- it's driven by the hot markets. so you're moving to san francisco, you're moving to seattle, denver, following the jobs and that's where you're going to buy your first home and that's why it's so tough. >> we know the federal reserve is likely to go ahead and raise interest rates. what does that do to the market? it's interesting to think about pushing people to say, i better hurry up and buy now. is there a point where the interest rates put a chill on the market? >> absolutely. we'll see gradual increases over time. i don't think so we'll see rates jumping up tremendously, we'll see them growing over time. i think it will cool off some markets. they'll say first cooling are the costal markets, san francisco, seattle, where homeowners are already

sttching their dollars to be able to make monthly payments, that's where home values could essentially go flat. we'll see some decline, you just can't spend much more on a home once your buying powers reduce so much of higher rate. >> we'll think where you're dealing with high rent, it's hard to come up with a down payment of 20%. >> absolutely. i think lot of buyers are striving to go for the 20% even though you can go in as little as 3%. that's one of the major hurdles for renters trying to become homeowners really saving for the down payment and qualifying for the mortgage. >> part of what we've seen over the last several years the millennials have put off making some of these purchases. there are people we've talked to, my len yals are -- mill len yals are different. are they getting to the point where they want to be buyers again and will that greatly change the dynamics of the

>> there are a lot of millennials. first time home buyers are renting for six years versus two years. they're waiting much longer. they're waiting longer to get married and have kids and therefore they're waiting longer to buy their first home. if you think about a first time home buyer having to save up to 20% for that down payment especial especially in those hot markets, and once you've passed those two hurdles you have to go out there and find a home and that's why you're hearing the stories of bidding wars an get the house and location you want. >> over all your sense is things are turning, if you want to buy you'll have to be an aggressive buyer? >> i think so. in these hotter markets, there are other markets where it's a lot more relaxed you have a bit easier time being a buyer in the middle of the country markets

it's not quite as rushed, as a buyer you have to be prepared and ready to hit the ground running. as a seller, you know, it's a seller's markets, a lot of sellers should want to sell your home. you have an easy time selling your home, but most sellers turn around and buy again. it's a little crazy out there right now. >> svenja, thank you very much for your time. >> thank you so much. here is saw look at what's making news as we head into a new week on the money. we know the federal reserve what it said at its last meeting. officials said it could well be time to raise interest rates after they've been near zero for about seven years. that's a policy makers think the economy is finally strong enough to withstand an interest rate hike when they meet next month. the dow was two days of triple point gains by thursday. the s&p five hundred and nasdaq

the markets continued with gains on friday. marriott is gobbling up the "star wars worldwide for more than $12 billion. the new company will have more than 1.1 million rooms and 5,500 hotels. and if you just can't wait for your jelly doughnut and black coffee with two sugars, the company started offering both ordering in advance and home delivery in some markets. it's seen as an effort to compete with starbucks which is offering advanced ordering through its app. up next more "on the money" how this eye wear company is helping to give kids clear vision in the classroom. the price of turkey is on the rise, but who is gobbling up the cost. it's not who you might think. as we head to break, take a look

eyeglasses were invented about 800 years ago, but they didn't come into focus until many years.

income people around the world. joining us now is kneel neil blumenthal he's cofounder of eye wear company warby parker. >> you came in at completely disrupted an industry that had been there are for a long time. you started out as internet only. when you saw this market, did you think you were creating a new market or fill ago need that existed? >> yeah, i think it was more filling a need, it was our own need, walking into an optical shop getting a pair of glasses. it never made sense to us. >> why do glasses cost so much. >> we think it has most to do with the structure where you have a bunch of very large companies that dominate the market and are able to charge pretty high. >> you've now kind of made the transition where you're not just online. you have 19 different showrooms, did you think when you first

be not just online but also somebody who was offering in store? >> not at all. the original business plan was on line only. at the time 1% were being sold online. we thought it was great to be the first there. warby parker model is bypassing the middleman and going direct to consumers and the most inexpensive for us to do that originally was online. what we found people want to interact with us in person. >> how many will you expand? and do you do more than one store in a city? or do you feel it's enough? >> it's unclear how many stores you'll have. when you think about the largest, they have over a thousand stores. we've been experimenting with multiple stores in the city we find that our retail metrics are best in class. we're doing $2,500 a square

that's on par with sort of -- like apple's in a class on its own, but often better than tiffanys and others. i think a lot of that has more to do with macro trends and how e commerce continues to get adopt. >> do you feel that some of the big players are targeting you? for a while i'm sure they kind of brushed you guys off. when you're able to keep a price point at $95, that's something that keeps pretty loudly to consumers. how have the tables changed in 2010 from when you first started? >> we've seen a lot of advertising shift then become strange but similar in a lot of offers at $95. but the industry continues to do a lot of bait and switch tactics where $95 to get you in the door and continues to up charge for you. that's all included.

is classic inknow va tor, if they want to compete with us, they have to disrupt their own model so you can imagine a lot of these companies do a lot of wholesale, right, and then those retailers have to mark it up three to five, typical in the optical industry. because we're direct to consumer, we're not wholesaling, we're able to pass all that retail mark up to customers. >> you're partnering with new york public schools to provide free glasses to 80,000 kids here in new york city. i know you've been donating glasses for a while, but why school kids. >> what we found is shocking here in our own city we think it's over 150,000 kids that don't have access to glasses. it prevents people from reaching their potential. you can imagine the kid who people are misdiagnosed saying as having learning disabilities, are disruptive in class. the reason is because they're

bored they can't see and nobody has given them any eye exam or given them a pair of glasses. the hope is we can scale that every kid that needs a pair of glasses can have them. >> always good talk to you. >> thanks so much for having me. >> thanksgiving is around the corner and turkey prices may have a little extra stuffing this year. believe it or not it might not carve as big of a dent in your wallet as you might think.

with thanksgiving less than a week away, some shoppers may find that traditional holiday staples like turkey has become much more expensive. it's not as bad as it could be. morgan brennan joins us with more and some food for thought. >> we've seen egg prices surging this year because of the worst out break of influenza in the u.s. it's not the only poultry product that's been affected by this. thanksgiving is fast approaching, and that means turkey. that traditional centerpiece has gotten more expensive after bird flu wiped out 8 million turkeys earlier this year, production is down 8% for the quarter. decade. while it hasn't let to prices. >> what the usda is predicting

is compared to last year's cost for $1.14 per pound, this year they're predicting that average prices are going to be $1.34 a pound that's up 20 cents or 18% relative to last year. increase. >> that's for eastern market whole turkey, an increase that might not actually impact consumers. while wholesale turkey cost are on the rise, the prices tend to be stickier, that's especially true when retailers roll out offers to lure shoppers who will likely buy other thanksgiving products as well. take stew leonard's between its four stores they expect to sell 1 million pounds of turkey between now and thanksgiving. it's seen a tightening in the turkey cost. in response, it raised the price of fresh turkey slightly and didn't change the price of its offerings. stew leonard, jr. said he's okay

with pockets less for the -- with pocketing less for the product. we want everybody to buy the gravy. we'll sell like 15,000 quarts of gravy this year already made. obviously, it's more profitable than turkey. so we want people to come in and, of course, buy their turkey and then buy the mash potato, gravy, brussle sprouts, you make more money on those than you do the turkey. >> stew leonard isn't only a, they're eating the loss in favor of traffic. as the poultry industry continues to recover from the out break, turkey supplies are next spring. next year those roasts won't likely be accompanied by this year's plump costs. >> but, of course, that hinges on the poultry industry not experiencing another outbreak which so far despite worries coming into the fall has actually been the case. >> i almost choked when i saw

one of the prices that you showed. $83 for the prices that are out there. when you add all of this up, are you going to find deals or should you just kind of brace yourself? >> a lot of it depends on the type turkey you're buying, if you want fresh turkey, that tends to be more expensive, but the national turkey federation actually came out this week and said, you can see these door buster deals for frozen turkey for as little as 49 cents, when you think about a wholesales price of $1.30 plus, grocery there. >> morgan, thank you very much. up next "on the money" a ahead. important money moves to make

for more on our show and our guests you can go to our web site and you can follow us on twitter @on the money. here are the stories coming up. on mubd we'll get a look at october's existing home sale. on tuesday, the first read of the gross domestic product for the third quarter is released. we'll be getting the latest new home sale numbers for the month of october. happy thanksgiving the markets are closed on thursday. the day after thanksgiving is one of the biggest shopping days of the year. black friday the retailers hope their bottom lines go from in the red to profitable black. a little more than a month is left before the end-of-the year.

make the most of the money. sharon epperson is here to tell us the five financial moves we should make before the end-of-the year because it is your money and your future and what is the most important thing you should do. >> if you have retirement accounts, make sure you're maxing those out and do that by december 31st, particularly the employer sponsor retirement plan, you get to put in $18,000. that might seem like a lot sfr a lot of people. put in as much as you can to get the matching contribution if you're offered one and know this, if you're 50 or older you can put in more money up to $24,000 for the year. >> what about your moves for investments over all, how do you adjust the things? >> no one wants to have losses with their investments you may have some. you can use those losses to offset the capital gains that you might have. that's a good thing. if you have more losses you can deduct up to $3,000. >> deadline is put in there for flex spending accounts are there

>> use it or lose it is the general rule of thumb if you don't do it by december 31st. you may have a grace period that let's you use the money until march 15th of the next year or maybe carry over $500. every plan is different and the general rule of thumb is use it or lose it. >> if you're either retired or near retirement are there different things you should be thinking about as we get to the end-of-the year? >> here is something of retirees should know and also anyone who inherits an ira from someone, you may be required to take distributions from that ira. if you're 70 1/2 or older you have to take distributions by december 31st. >> what happens if you don't do that? >> it's the biggest penalty the irs has out there. 50% of the shortfall you should penalty. we're not talking abouteniors here, there are some who might have gotten something from a

grandparent or parent, check with the ira custodian, check with your financial advisor, make sure you're taking the this year. >> i know a lot of people start thinking about charities, it's probably a good time to assess how much you've given, how much you should go ahead and give. >> this is the time you might check and give more. make sure you do it before december 31st, if you write a check make sure you don't post it for january, make sure that you have that date before december 31st, so it will count. think, also, about giving appreciated assets that might be a good way to write those off of your taxes. >> tax beneficial. >> and you don't have to pay the capital gains tax. >> sharon, thank you very much. >> sure. that does it for us today. thank you so much for joining us. next week, if you are planning on donating to charity, we'll tell you how to make sure that

each week keep it right here this is more than just a town. this is our home. and small business saturday... is more than just a day. it' s our day... to shop small at the places we love... with the people we love. for stuff we can' t get anywhere else. and food that tastes like home. because the money we spend here... can help keep our town growing. on small business saturday, let' s all shop small.