melissa: robert schiller, economics professor from yale and cofounder of case-shiller index. what is your take on what is going on in the market right now? >> i always found data movement is hard to predict. you know back in january we saw big drops in the stock market, i thought people were wondering is this turning point, turned out to be a correction. looks kind of similar. the other thing i don't think people are psyched way they were. i have survey data on investor perceptions and, investors at least over the last few months have been been positive about the markets. i don't think they read too much into this drop. melissa: what do you think caused it? do you think it has to do with the federal reserve? how many moves they have coming up? is it a normal cleansing that happens or maybe people taking some profits? what's your thought? >> i wish i had good answers to that. the market, we've seen price declines for about a week now, it become as news story and people start to react to it. major stock declines are typically reaction to that sort of story like in 1987 or 1929.

but nobel prize winning economist robert schiller says that's not always good. >> the economy seems to be coasting upward. but in kind of complacency this confidence is volatile. >> the only good new for the winter buyers is that higher rates could mean seller finally realize t sky is n the limit and cut the red hot home prices we're still seeing today. for nightly business report, diana olick in washington. >>> and to read more about the impact of mortgage rates at 5%, you can head to the website at nbr.com. >>> and i activistestor takes a stake in starbucks where we begin the market focus tonight. bill ackman of per shallin squaul capital revealed a 900 million position in the coffee chain. sayi stock could double over the next three years. and he added the reiler is one of the best positioned if minimum wages rise. starbucks ss it looks forward to a productive dialogue with mr. ackman. starbucks show to 57.7137 and tank other talk is heating up at papa joans. they are there are reports the fund management is considering a bid for the pizzae chain but ts no guarantee that a deal acco

housing sector joining us now, nobel winner, creator of the s&p schiller index, of course, is robert schilleror joining us what do you make of that pace of the increase in yields in the space of a couple of months? >> well, it reflects, i think -- it's not just fed policy it's also just a generally strong consumer confidence that we see at this point in time the economy has looked strong for years and especially since trump took presidency and i think we're just in an exuberant time people find these rate increases as normal, given the economic conditions. >> professor, can both consumers and investors stomach the pace that we've seen in terms of the increase, even if it was expected it has spillover effects. >> yeah. well, i think the fed is -- well, careful. it has been tightening now for a while, but at a very measured pace i don't think it's creating any alarm at the present time. i think -- you know, i said this is an exuberant time but it's also a complacent time we've seen such steady growth. we had a recent, over 4% gdp growth number. people extrapolate those things and right now they