That could be changing with the Federal Reserve saying they could raise Interest Rates. Plus, limited supply and growing demand. What is next for buyers or sellers. We have the cover story this morning. Reporter Jennifer French has been shopping for a home in Northern Virginia for three months. She and her husband are firsttime buyers is price is paramount. Its definitely about affordability and convenience. Reporter home prices are still rising faster than incomes thanks to historically 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. This is really nice. Reporter that makes her a little nervous. Were not going to rush into anything but its definitely incentive to do it safe. Probably trying to do something within the next three to four months. Reporter the rate hike hasnt been that dramatic. Barely 1 4 of a percentage point which doesnt translate into much on a monthly rate. People are on the cusp know qualification rates. That can be a challenge. Most of the people theyll buy. Lots of room for storage. Reporter home buying, however, is more emotional than most investments. The change in rates doesnt change peoples behavior in terms of not doing something but it does play on the psyche to say maybe i should move now because things arent going to get that much better. Reporter after falling through much of october Mortgage Rates suddenly jumped higher last week in the move with highering rates. There is clearly demand for housing. The biggest head wind isnt rising rates but falling supply. Home builders arent stepping up and sellers dont want to list their homes because theyre afraid they wont be able to find Something Else to buy. It all adds up to frustrated buyers. Were really ready to find a place, settle down, call it our own. This is a little bit small. Reporter and slower sales. For on the money, im diana olik. Should you buy now . S if the age old question where you start thinking is this a buyers market or a sellers market . Having watched all of this, how would you qualify it . For most people its a sellers market. Extremely competitive out there. Youre feeling it as a buyer. Youre putting in multiple offers. Its hard to find a house. Its tough for buyers in general. Thats the first time weve heard things like that. Since probably before 2007 when you had the fever pitch. Absolutely. A lot of that is the recovery is going on. Things are going quite nicely. Were seeing home value appreciation still at a very robust rate. The problem is low inventory. Thats driving up the home values, but its a good time to buy. If you can, you should because rental rates are so high. Financially it makes a lot of sense. Is this really a story of a few hot markets in a place like seattle, san francisco, denver or does it branch out . Its driven by the hot markets. There are a couple of hot markets where these trends are coming out especially much. A lot of personal home buyers are locating because thats where the jobs are. Youre moving to san francisco, youre moving to seattle, youre moving to denver following the jobs. Thats where youll find your first home and its tough. We know the Federal Reserve is very likely to raise Interest Rates. What does that do to the market . Pushing people to say, oh, i better hurry up and buy now . Is there a point where higher rates put a chill on it . Absolutely. The fed is keen on not shocking the system and well see very gradual rates over time. I dont think well see rates jumping up tremendously. Well see them growing over time. I do think it will cool off some markets. The first cooling markets are coastal markets, san francisco, seattle. Homeowners are stretching their dollars to be able to make monthly payments. Thats where home values could go flat or might see some declines because you cant spend much more on a home once your buying power is reduced so much by higher rates. I think in some of those cities where youre dealing with high rents, its hard to come up with a down payment of 20 . Absolutely. I think a lot of buyers are striving for 20 downpayment and that is a major hurdle, saving for the downpayment and then qualifying for a mortgage and actually finding a home later on. Part of what weve seen over the last several years is the millennials have put off making some of these purchases. Theres a school of thought, there are people who weve talked to who say, look, millennials are different. They want to be renters. They want to live in urban areas. Are they finally getting to the point where they want to be buyers again . Will that greatly change the dynamics of the housing industry . There are many millennials interested in buying and theyre delaying that decision. Firsttime home buyers are renting for six years versus two years in the early 70s. Theyre waiting much longer. Theyre waiting longer to get married. Theyre waiting longer to have kids and waiting longer to buy their first home. If you think of a firsttime home buyer having to save up to 20 for the downpayment especially in the hot markets, then trying to qualify for a home mortgage. Then you have to find a home. Thats where you hear the stories of bidding wars and trying to get the house you want in the location that you want. Overall your sense is that things are definitely turning, things are heating up. If you want to sell your house, youll probably get offers very quickly. Absolutely. If you want to buy, you have to be a pretty aggressive buyer . I think so. Especially in the hotter markets. There are other markets where its a lot more relaxed so you have a bit easier time being a buyer, middle of the Country Markets like chicago, cleveland and its not quite as rushed. Being preapproved for a mortgage definitely helps. As a seller we think its a sellers market, a lot of sellers should want to sell their home. Most sellers end upturning around and becoming buyers again. A lot of sellers are holding off saying, im not going to get into the buyers market. Thank you for your time. Thank you so much. Now heres a look at whats making news as we head into a new week on the money. We know the Federal Reserve what it said in its last meeting. In minutes oo released this week, officials said it could well be time to raise Interest Rates after theyve been near zero for seven years. Thats a sign that policy makers think the economy is finally Strong Enough to withstand an Interest Rate hike when they meet next month. That doesnt seem to bother stocks. The dow with two days of triple point gains by thursday. The s p 500 and the nasdaq strong as well. The markets continued with gains on friday. Hotel giant mriott is gobbling up the smaller groups. Starwood worldwide which is the owner of westin and sheraton brands for more than 12 billion. The new company will have more than 1. 1 million rooms and 5500 hotels. If you just cant wait for your jelly donut and black coffee with two sugars, Dunkin Donuts has a solution for you. Theyve started ordering in advance and Home Delivery in some markets. Its seen as an effort against starbucks. Up next, on the money. Eliminating the blind spot. How this eye wear company went from startup to success and is working with kids to get vision in the classroom. Later, were talking turkey. The price of turkey is on the rise. Who is gobbling up the cost . Its not who you might think. Right now as we head to a break, take a look at how the stock market ended the week. Eyeglasses were invented about 800 years ago, but they didnt come into focus for many until a Startup Company disrupted the Retail Business with their stylish frames. In 2010 warby parker became a Generation Next phenom. Also donated 1. 6 million pairs of eyeglasses to low income people around the world. Joining us is neil bloomenthal. Thank for being here. Thanks for having me. You came in and completely disrupted an industry that had been very stingy for a long time. You started out as internet only and i just wonder when you saw this market, did you think that you were creating a new market or filling a need that existed . I think it was more filling a need. It was our own need, walking into an optical shop excited and then walking out feeling like we were ripped off. It never made sense that glasses should cost as much as an iphone. Why do glasses cost as much . Just with the industry structure where you have a bunch of very Large Companies that dominate the market are able to charge high runs. Youve now kind of made the transition. You have 19 different show rooms. Did you think when you first started off that you would also be not just online but also somebody who was offering in a store . Not at all. The original Business Plan was online only. At the time 1 of glasses were being sold online so we thought it was a great opportunity to be one of sort of the first movers there but its sort of about bypassing the middleman and going direct to consumers in the most inexpensive way for us to do that originally was online, but what we found is that people wanted to interact with us in person. How many fronts will you expand in . Do you feel like one store a city is enough . So its unclear how much well have when you think about the largest optical retailers, they often have over 1,000 stores. We have been experimenting with one store a city. Weve found our retail matrix are best in class. Over 2500 a square foot. Pay back periods are less than 20 months so, you know, thats on par with like apple. Well, apples in a whole class all its own but like tiffany and other retailers. I think a lot of that has more to do with macro trends and how ecommerce continues to get adopted. Do you feel that some of the big players are now targeting you . For a while im sure they kind of brushed you guys off, but when youre able to keep the price point around 95. That is something that speaks pretty loudly to consumers. How have tables changed . Weve seen a lot of creative marketing, Creative Advertising shift that has become strangely similar in a lot of offers at 95 but the industry continues to do a lot of bait and switch tactics. 95 can get you in the door but then consumers up charge you on lenses, other coatings. Whereas, for us thats all included. The challenge for the incumbents is if they want to compete with us, they can disrupt their own model so you can imagine a lot of these companies do wholesale, right, and then the retailers have to market up 3 to 5 axis in the industry. Where were not doing it, we can pass the Retail Market to the customers. Youre partnering with new york city Public Schools to provide free glasses to 80,000 students in new york city. What made you get into that . Why the schools . Here in our own city there are over 150,000 kids that dont have access to glasses and it just it prevents people from reaching their potential so you can imagine a kid that people are misdiagnosing with learning disabilities, behavioral issues and theyre misbehaving because they cant see. I want to thank you for coming in. Always good talking to you. Thanks so much for having me. Up next, we are on the money. Thanksgiving is just around the corner and turkey prices may have a little extra stuffing this year. Believe it or not though, it might not carve as big a dent in your wallet as you might think. Also later, important yearend money moves that you should make. Its a list you dont want to miss. On the money will be right back. Announcer if youd give thanks for a better nights sleep. [barks] sleep train has just the ticket. [train horn blares] during sleep trains thanksgifting sale save up to 300 on beautyrest, posturepedic, serta, even tempurpedic get up to three years interestfree financing plus, choose a free gift with selected mattress sets but hurry, sleep trains thanksgifting sale wont last sleep train [train horn] your ticket to a better nights sleep with thanksgiving less than a week away, some shoppers may find that traditional holiday staples like turkey has become much more expensive, but its actually not as bad as it could be. Morgan brennan joins us with more and some food for thought. Morgan. Certainly lip weve seen egg prices surging this year because of the worst outbreak of Avian Influenza in the u. S. Its not the only poultry product affected by this. Reporter thanksgiving fast approaching and that means turkey. That traditional Dinner Center piece has gotten more expensive. After bird flu wiped out nearly 8 million turkeys this year, production is down 8 for the quarter. According to the u. A. Agriculture department, the lowest level in a decade. While it hasnt led to shortages, it does mean higher prices. What the u. S. D. A. Is predicting is compared to the last years cost of 1. 14 per pound this year they are predicting in the Fourth Quarter that average turkey prices are going to be 1. 34 a pound and thats up 20 cents or 18 relative to last year. Thats a very big food cost increase. Reporter as for Eastern Market whole turkey its the wholesale price, an increase that may not impact consumers. While the prices are on the rise the prices paid at Grocery Stores are stickier. Thats especially true this time of year when retailers roll out offers to lure retailers that will buy other production as well. Take stew len nards. They expect to sell 1 Million Pounds of turkey from now until thanksgiving. The company has seen a tightening in the turkey market with wholesale costs it pays jumping 10 . They raised the cost of turkey slightly and didnt change the price of the most popular and expensive offering. Stew leonard jr. Said hes okay with pocketing less for the product. We want everybody to come in and buy the mashed potatoes, gravy. Well sell 15,000 quarts of gravy this year already made. Obviously its more profitable than turkey so we want people to come in and of course buy their turkey, and then buy the mashed potatoes, gravy, brussel sprouts. You make more money on those than the turkey. Stew leonards isnt alone. Across the u. S. Many Food Retailers are eating loss in favor of foot traffic. As the poultry industry continues to recover from the worst bird flew outbreak in history, turkey supplies are expected to return to normal by next spring, meaning next year those plump thanksgiving roests wont likely be accompanied by this years plump costs but, of course, that hinges on the poultry industry not experiencing another debilitating outbreak of Avian Influenza which despite so far coming into the fall has been the case. I almost choked when i saw one of the prices you showed. 83 for the turkey out there. When you add all of this up, are you actually going to find deals when you walk into the supermarket . Reporter a lot of it depends on the type of turkey youre buying. If you want fresh turkey, that tends to be much more expensive. Thats where a lot of the prices have tripled out to consumers. The National Turkey federation came out earlier this week and said you can see the door buster deals for frozen turkey for as little as 49 cents. When you think of whole sale price of 1. 3 1. 30 plus, Grocery Stores are taking it on the chin there. Morgan, thank you very much. Up next, on the money, a look at news for the week ahead. Dont forget, important money moves to make before the end of the year. For more on our show you can go to our website, otm. Cnbc. Com and follow us on twitte twitter onthemoney. Monday octobers existing home sales, tuesday, Gross Domestic Product numbers. Wednesday, durable goods numbers. The latest new home sales for the month of october and happy thanksgiving. The markets are closed on thursday to celebrate the holiday. Of course, the day after thanksgiving is one of the biggest shopping days of the year. Black friday. Thats when the retailers look at the numbers going from in the red to the black. A little more than a month is left. 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, your future. Shar sharon, what is the most important thing you should do. If you have retirement accounts, make sure youre making those out. So for your 401k, 403b. You get to put in 18,000. That might seem like a lot for a lot of people. Put inasmuch as you can to get the matching con trtribution fr your company. If youre 50 or older, put in up to 24,000 a year. No one wants to have losses with their investments, but you may have some. The good news is you can use those losses to offset the Capital Gains that you might have. Thats a good thing. If you have even more losses you can deduct up to 3,000. Deadlines pretty near for some of the flex spending accounts. Are there ways you can spend that before the end of the year . Yeah, use it or lose it is the general rule of thumb if you dont do it by december 31st. You may have the grace period that lets you use the money till march 15th of the next year or maybe carry over 500 but every plan is different and the general rule of thumb is use it or lose it. If you are either retired or near retirement are there Different Things that you should be thinking about as we get to the end of the year . Heres something that retirees who are 70 1 2 should know or anyone who inherits an ira. You may be required to take distributions from the ira. If you are 70 1 2 you have to take required minimum distributions by december 31st. What happens if you dont do that . Its the biggest penalty probably that the irs has out there. 50 of the short fall of what you should have taken you have to pay a penalty. Not just talking about seniors here, there are some who might have gotten something from a grandmother, parent or something who unfortunately passed away. Check out with the ira custodian, financial adviser. Make sure youre taking the withdrawals you need to if you need to. As we get towards the end of the year people start thinking about charities. Assess how much youve given, how much you should go ahead and give . Yes. This is the time that you might tug on your heart strings and give more. Make sure you do it before december 31st. Write a check, make sure you dont postdate it for january. Make sure you date it before december 31st. Think about giving appreciated assets. That might be a way to wipe some of those appreciated assets off of your taxes. Tax beneficial way of doing it and Capital Gains. Sharon, thanks very much. Sure. That does it for us today. Im becky quick. Thank you so much for joining us. Next week if you are planning to donate to charity, we will tell you how to make sure your dollars do the most good. Each week keep it right here. More on the money. Have a great one and well see you next week. Hi there. Were coming to you live from the Nasdaq Market site on a beautiful night in new york city. The guys behind me are getting ready. While theyre doing that, here is what is coming up. Its the most wonderful time of the year because one major big box retailer showing signs of breaking out. Well give you the name and how to profit. Plus talk about a shocker. Tesla shares falling after the Company Announced a big recall. But that could make for a great trade. Well explain. And you lock it up. That is what investors want to do with profits in their portfolio and well show you how for under 5. The action begins right now