average are not homebuyers in the miami market or new york or along the coast. as we look at the market as a whole, the gradual deceleration in home prices is good news as it tells us we are not overheating and seeing a big run-up in prices like we saw in 2005 2 2008 -- that run-up in cities like new york and miami and l.a. doesn't have you can earn? -- doesn't have you concerned? >> those are different kinds of buyers. it doesn't squeeze the average resident out of -- it does squeeze the average resident out of metropolitan areas but that is a whole different story. that is a wealth allocation story. >> thank you for breaking down the housing numbers. now time to give you the bulletin, the top is the stories of the morning. president obama won't call the hacking of the sony pictures an act of war. the u.s. has accused north

we look at first-time homebuyers, on average, first-time homebuyers put down 6%. cheryl: because the banks are requiring them to, no? >> that's great. many first-time homebuyers think they have to save 20% down payment. it's not necessarily the case. we need to get those millennials out of the rental property and buying homes. >> all of the baby boomers are looking to sell their larger homes or family homes to downsize as well. let's talk about that between the millennials and the baby boomers. one of the things you say is important is lifestyle. talk about that on the show that 18 hour is a new trend. do you see that happening as well? >> it's happening around the country. we launched the friendlyist search at better homes and gardens of real estate. people aren't buying a house anymore, they're buying lifestyle, community and convenience, that's a big trend. cheryl: that's the key word, convenience, what kind of things can i search for? how many dunkin' donuts are close by? >> is that your favorite? we can search for drivetime. in new york that is relevant. but

we tend to look at first-time homebuyers, we are talking about that 25 to 34-year-old cohort. many of these in the adults are choosing to rent. if we look at household formations, it is lower than that one million mark. year, withat next labor market improvement, especially for that cohort, as they move out of their parents' home, it will start to increase. that should be good for the housing market. >> i am speaking with anika khan , senior economist at was fargo. point outrk bittner that the share of all transactions fell 5%. why have investors been moving away from these types of purchases? >> of course, when we look at the share of all cash transactions, which are therered by investors, are a lot fewer distressed transactions in the market, more specifically foreclosures. with fewer foreclosures, it doesn't make sense. the math doesn't make sense for many of these investors. many of them are looking for other opportunities. >> such as? intony of them are moving markets where they can find yield. the underlying momentum, the underlying thing that many investors are looking

that's young to be first time homebuyers, now or in the past.n first-time homebuyers may be a couple years away from us. gerri: talking in the last segment about interest rates mortgage rates benign unbelievably so, do you think the market is hoodwinking itself, do you think the rates could spike this year? >> i expect rates are going to rise this coming year if the economy strengthens. that's what i and everyone else said about 2014. not all predictions come true but again, just as last year i expect the economy will be stronger next year, the fed will do less to keep rates low and both should cause rates to rise next year. gerri: prices won't rise as fast but interest rates could be higher too, a big picture. jed, thanks for coming on, good to see you. >> happy new year gerri. gerri: thank you, you as well. right back with answer to the question of the day, are you returning christmas gifts? stay with us. these ally bank ira cds really do sound like a sure thing but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhh

home prices have salubrious effect on homebuyers.ore money to use it for a down payment or fill a house or renovate a house, correct. >> i actually have a different take on that a lot of people are talking about the positive of low oil price. liz: right. >> we like going to the gas steaks and not taking out home equity loan to get a tank of gas. we get that. here is the thing. there is ugly side to this. think about many soft statistics people not aware of. six years ago, august of 2008. we imported 181 million barrels of oil in that month. six years later this, is right after the eagleford shale well was drilled in south texas, that is down to7 million barrels. all that -- 87 million barrels. all that money is concentrated here which is a good thing. with price of oil coming down may not be as profitable. you can't take things off-line and put them back online in snap after finger. liz: i'm not with you on this i think it is net positive for the consumer. >> i really don't think so. here is couple reasons why. 11 of the 12 hottest h

charles: i see your point, for irresponsible would be first-time homebuyer.ople off the fence now. skyhigh rent in new york. >> we have a new rental record being paid in new york city as of today. it is the entire floor, the 39th floor. a tenant has just signed on the dotted line. all i know it' is it is an international buyer. fox business will get access next month, normally 30,000 per night for the floor. all they would say is interest from middle eastern buyers and people in europe, but on a tenth floor this person whoever it is or whatever also rented the getty suite on the tenth floor 150k for the month. more than 1000 feet plus the terrace. six bedrooms, six and a half bath. the presidential suite. this person spends that for the month of december. in new york city for the holidays. half a million dollars for one month of the year. charles: these guys bring an entourage with them no matter what. always overseas money. this may be broken before the year is over. >> if they are going to let me walk around with cameras and talk to you they would like to s

starting on the 13th, fannie mae will allow the lower down payments for first-time homebuyers, allowing borrowers refinancing to reduce their equity to 3% to cover closing costs. freddie mac will begin a more limited program in march. more investors on the main bill capitalnd fund at janus , they received about $770 million in new money in november, bringing the total assets of the fund to over $1 billion. the bond returned 4/10 of 1% over the past month. a 1909 baseball card featuring honus wagner has sold for about $403,000. the card was sold by a private collector and was bought by an undisclosed bidder in an online auction. the card is one of about 60 such cards in existence. in april of 2013 the card sold ar $2.1 million, a record for baseball card sold at a public auction. that is a look at the top stories we are following at this hour. the u.s. congress faces of thursday. -- there's a deadline to finance a massive spending bill to avoid another government shutdown. the outcome could hinge on government policy changes that they are trying to tuck into the bill. peter cook joins us

charles: to be nice your franchise owners put more money in their pocket. 3% mortgages a first-time homebuyers get a home with a 3 percent down so will distort the needed rally for housing? when we come back. you don't need to think about the energy that makes our lives possible. because we do. we're exxonmobil and powering the world responsibly is our job. because boiling an egg... isn't as simple as just boiling an egg. life takes energy. energy lives here. charles: calling all millenials 3% down is sounds good it isn't that what it got us into the mess in the first place? give you 37-thousand to replace it. "depreciation" they claim. "how can my car depreciate before it's first oil change?" you ask. maybe the better question is, why do you have that insurance company? with liberty mutual new car replacement, we'll replace the full value of your car. see car insurance in a whole new light. liberty mutual insurance. charles: i am getting my notes out. starting next week first-time home buyers can do just 3 percent down. you need the credits gore 620 or better you can cancel the private insura

and so certainly the exact consumers and the homebuyers in the small business owners, they are targetedhe exact ones that are harmed. >> no one is questioning whether we should have regulations. we have people that want to have more regulations and others. charles: the argument is that we had unfettered capitalism. so okay, i had an e-mail from mira who says i wish i had the power to control my own destiny and instead of these blockheads having the power to control there is at my expense. and at the end of the day, screaming at each other during the day, sharing drinks together a night, it is a democracy at work. this is the kind of stuff that keeps people out of the stock market. >> i had a big issue when obama was elected, they shunned the stock market because they thought obama would kill the country. in the meanwhile they have missed out on the greatest rallying. what they need to do is take the political views and it's very interesting. if you let your political emotion involved, you'll never be satisfied. >> there is a point where policy can crush your portfolio and when it can cr

>> homebuyers stepping back from high prices, after a year of rapid price acceleration, people are unwilling to foot the bill. incomes haven't kept pace and don't want to pay what home sellers expect. cheryl: interesting, do you think you'll see price pressure because of that? starting to see that in some markets, not all but some. >> we're seeing that with thousands of people who go on tours and write offers through redfin agents. people who are unwilling to pay the price. time and again we've had deals come together and fall apart over pricing disputes. you see that when there is an influkz point, we see that when the market is heading up and flattening out. my guess is we're going to have a wild ride in the first few months of 2015. cheryl: let's talk about that, your predictions for the new year, always love this. hot markets for 2015? >> dallas, houston, denver, salt lake. the middle of the country is where people are moving because they're afraid of the high prices in california, d.c., new york and other coastal areas. and we continue to see everyone flying toward the center of the cou

gerri: before getting the keys to your new home, more and more homebuyers are experiencing sticker shocking times. here with ways to lower your closing costs, greg mcbride, chief analyst for bankrate.com. welcome back to the show. great to see you. what is up with these numbers? closing costs up nearly 6% year-over-year? why? >> well, a lot of this is just the fact that lenders have requirement where they quote you on good faith estimate they're not allowed charge awe penny more when it comes to origination fees. we've seen over last couple years, when in doubt, lenders quote you a higher fee, simply because nobody will complain if it turns out to be lower at closing but they have zero latitude for that fee to actually be higher. otherwise they would redisclose and it just delays the closing. >>, so i don't understand why that makes it higher every single year? that makes no sense. >> a new rule went into effect couple years ago. meant two things, one, that lenders when they quote origination fees, fees they are responsible for on good faith estimate, there is zero latitude, zero varianc

disagreements over tax breaks the finance minister went to put in place for homebuyers.or israel's middle class. disagreements of how to do with rising violence. peace talks with the palestinians which was something close to the heart of the justice ministers -- justice ministers to be live the -- tz ipi livni. would reducehat fears of the arab minority. me a sense, this could not comment worst time economically. >> the economy shrank in the third quarter for the first time in five years, taking the hit -- taking the hit for the 50 day war. declining, trading at a 15 month. thank is almost time to weaken the shekel to boost the competitive of exporters but i do not think it had political instability in its equation when he was trying to weaken the shackle. ch heard from which -- fit downgraded -- downgrading them. thank you create elliott gotkine joining us from tel aviv. quicktime is eyeing -- buying a company. we would talk exclusively to the ceo of club med. that is next. ♪ >> welcome back. you are looking at a live shot where george osborne will be the liver in his s

potential homeowners and homebuyers are doing alright, they are pretty safe for the next 12 months. >our prices rising the most? >> scotland and northern ireland are up about 10% year-over-year. this time last year they were flat. they are the oh performers. >> thanks a lot. >> 6:15 london. the yen and sets a record number of migrants died in the mediterranean this year. that is next. ♪ the city football club prepared for a make or break match this week. it was also showing off a new investment in its future. the new trading academy cost 200 million pounds. bloomberg went behind the scenes to find out more. this is probably as good as it gets certainly in the world of football. >> research across the globe -- multiple sports in multiple countries trying to find what is best. you have everything to give that little bit of extra edge in insight into how our players are performing. >> we have a big commitment to technology to make sure that we give our players every advantage to develop and perform. there are 80 acres, 16 pitchers, only four of which will be used, the other 12 being used

what does that do to not only the new homebuyer, but other folks who have seen their wages remain flatver the years? have a situation where home values outpace wage and income, not good news for potential buyers. and then you have rising mortgage rates. this year, very fortunate, very welcoming that they did not rise. i thought that they would rise. there was global economic uncertainty, so it continued to remain at these low levels. but next year, coming out of the federal reserve, looks like mortgage rates will be rising sometime next year. another piece of bad news for potential buyers. the positive is the underwriting standards. underwriting standards have been exceptionally stringent. was some dialing down of the underwriting standards, both in terms of government policy and also from private lenders. mortgages originating in the past few years are one of the best-performing mortgages ever with very low default. that means there is a natural market. we may again to see some dialing down and mortgage standards. moving towards more normal -- we do not want less underwriting standard

freddie mac did not exist, it's impossible to conceive right now, but if they did not exist and homebuyersal to provide credit, where would home prices be? >> are you asking me for an estimate? >> i am throwing the question out there. >> home prices are usually driven by construction costs. we can see a period of home prices below construction costs. that would be temporary and eventually they would come up to construction costs. that would be the fact. there might be a smaller housing side and people would not feel the same urge for having a giant house. they would live in more modest quarters. we went through a period of shelley holmes, the mcmansions and that could be one of our cultural history. >> home ownership rates are going down even as the market overall is rising. the reason for that is an ever increasing proportion of single-family units that are now rentals. indeed, the evidence of people skewering -- assuring homeownership is the same reason they are cutting back on capital investments namely the discount rate applied to incomes weather in puget incomes or real incomes -- web

bills in congress that created business improvement districts, provided first time tax credit for homebuyersor the first 8000 new housing units . we worked with the federal entities for the redevelopment of the old post office as the hotel monaco. and the renovation of the old building and the smithsonian, american arts museum. million dollars in new developments took place in downtown over seven years, the most successful read of element of an american downtown. -- redevelopment of an american downtown. the difficult balance of financial incentives and community needs. chemist taught a him how to achieve results. he may have been the miss most -- most misunderstood genius i've ever known. we would all agree that d.c. will never be the same because of him. i'm proud he considered me a friend for over 45 years and i'm honored to call him the same. i love you, marion. may god bless you. [applause] i want to start this off the way marion barry wood started off. good afternoon. it off. have started i'm here because of marion barry. to thank one of the most special people i have ever had the pres