market coverinup a bubble? median home prices are searching up from the year before, sales througthe roof. this is certainly not helping curb fears housing is growing too g too quickly. finance professor at george mason university, welcome back to the show, anthony. when the national association of altors says prices are growing too quickly, that's a sign of something. what do you say? >> absolutely. you reallyave got to p closer attention to the data, and they are. gerri: and 8% hike mth to month which reminds me a lot of 2006, 2005, 2004. is this a bubb? >> let's take look at this carefully. on the surfa, yes. if you look at mortgage applications, stillmakes 95 levels which means they are in the doldrum not coosers buying homes, these are invtors and wall street, et cetera a paying cash. there is a bubble, absolutely and it is not gog away anyti soon. rr one of the issues at play here are rising terest rates and expectations rising rates could kill this boom. average 30-year fixed-rate mortgages across the country cruising jusunder 4% in many markets across the country, you lookt 3.95% on the east coast, 3.92% on the west coast, big differences by region, look at that. and then you sta tconsider how much of these rates are going to go higher. the expection 4.5% early next ek, menon what happens if they go to 7% suddenly all across the country these houses are not affordable i cities like denver, los angeles, san francisco, seattle, miami, washington new york city. we are a long ways from that. do you think there are other elements making housing affordable? >> ablutely. there are two factors that his interest rates gng up tang it less affordable and house prices are gogg up a lot faster% thanou would think otherwise. the thing i want you to look at is may 2. look at any chart since may 2. that is when they lose control of the market, so stocks have come down. gerri: some people say the fed has lost control. a week ago the fed control is too much. can you have it both ways, really? >> no, absolutely not. for all the good inntions i come in peace, the fed has done some good. the fed has lowered interest rates and on the housing side ha fannie mae, freddie mac, fha, almost 100% domination of the housing market rough the government. what do get? bubbs burst, bubbles bur. gerri: that is what i am worried about. i remember the last time we got into a housing bube i started looking at those little pieces of evence something was awry and i found something about that in this market today. we look at the searches on the web for homes, everybody buys homes this way now. in places like palm springs, sacramento, california. we have web search is going on from 4:00 a.m. to 10:00 a.m. in astonishing numbers. i find that to be a sign somehow the market might be ahead of itself. what do you think? >> everybody is saying the psychology bubble, the housing prices shoong up there i want to get on the bawagon. i thought i saw this in 20, and we are seeing inventory come back on the market, so i had to get into the housing market now. zero down payment if possible. were repeating the same cycle. gerri: i agree. we will watch this very carefully and i am sure you w wl help us. thank you for comi o we're taing about market psychology of hoing, right? some relief after the market got rocked for a second day after the f shifted from a potential pullback. take a look at that screen rocking out. savings take ion the chin despite a rebound the dow and s&p so how do you manage the fear in this marketplace. joining me now, psychologist from fox news to bitter i've known you a long time, wanting to talk rket psychology here. is it o professional investors losing it? >> i think whais happening as investors are making a lot more out of the move that we have seen because we have not even declined by 5%. historically we have a decline of five to 10% every year since world war ii so were really just doing what we normally do. gerri: i think people have lost their minds on it. you think about this thing all the time. market psychology, a lot of lines in the nd people say things are crazy. somehow weecided a 4% mortgage rate, over that will kill the market, right? a yield on the 10-year treasury insanity. what do you say about this psychology? >> i say the reason yohave that kind of panic is try telling an alcoholic that there isn't going to be any alcohol available for four hours or six hours. in otherords when you are drugged with free money and irrational interest rates that are artificially low the idea of a pullback brings aly back like wait a second, it has been a bubbl we have been addicted and dependent on governmt fixing the syst anduess wt, it get their pulses up, they get panicked. they should. gerri:overnment standing behind t federal reserve ben bernanke keeping the market afloat for four years. we havthe transition now to something else, how do we do that as individual investors? >> i thinkwe as indidual investors don't have a choice in the matter, we haveo be dragged along and it depends on how we respond. gerri: i don't want to be dragged, wants to lead the charge and find the right way to do it. ll me how. >> you don't overreact. what the fed is trying to do is avoid a japan like ilationary to firlike environment. so the interest rates are artificially low, they didn't hint, they told us the data continues to come in as it is, we will start theapering program in the later part of this year anand by next year. we're just getting back to a non-stimulus environment. gerri: back to normal really. people feel like it is not back to norral, it is something new. how would you advise people to deal with what will be a volatile summer d fall? >> number e to getxpert advice you don't want to be your own psychiatrist or youown financial planner unless you are the other thing is to say look, no kidding to sleep d not having nightmares o were wakingp in the middle of the night should meen you convey to your financial team or advisor ththe fact he wants to b conservative, preserved your position, don't be subject to bipolar sorder which is what happens when you sever reality and let your mood float from high to low to high bause of artificial government propping up of people, houng and industry you get to come down to ground level and think people should be telling the financial advisors make a landing as easy as posble becae it's coming. gerri:hen i think about this because i don't really make decisions based on what the market is doing with my retirement account and savings accoun instead i'm always putting money in all the time. so i take t all that anxiy, it's possible i don't ev look at it as muchs i should. what do you tell people who know we should not operate off their gut. >> they should be more like you, they should realizwe have had declines of five to 10% every year since world war ii and have nths.n back to breakeven in two 20 decline 10 to 20%, we've gotten back to breakeven in four months. you're probably beer off buying then you are bailing the only w you lose money is by selling at the bottom so i would say don't let your emotis rule as the other gst was saying you are paying an advisor to hold your hand and tell you not to sell at torst possible time. gerri: last word, what would you say? >> the last word is this, sinc we have seen the internet bube bubble, when that first, that was not such a quick recovery, that ruin a lot of people. for the folks at manic high, looks, don have irrational exuberance either. rain in yourself, plan for stormy weather to come and i agree with my co-guest. don't panic. rri: keep your head when others areosing theirs. they make a ton of dou in times like this, this is what they live for, this is what they want. youudon't ve to play that game, you can be smarter than wall street and that is at we talk about here all the time. thank you much for coming on, great advice and great fas. we want to know what you think. do you invest with your heart or your head? log onto gerriwillis.com and i will share the results athe end of the show. we have more to come up cluding tipon how to bring man's best friend with you on your summer vacation. we have dogsn the house. coming to an atm near you, prepaid deb cards. next. with the spark mes card fromapital one, bjorn earns unlimited rewas for his small business take theags to room 12 please. 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[ crows ] now where's the snooze button? ♪ gerri: we aki gerri: we are looking out for yo credit score tonight. any ves can haunter history for years tocome. join me now with tips to boost your credit score, consumer education presenfor smart credits.com. welcome back to the show, always good to have you on. i want to starwith the credit scoring, it is a long time. if you have that informaon, how long iit? >> the credit industry is a self policing industry. when you miss paents w are you have aounts went t default or collections or most recently people going into foreclosure that is a seven year penalty. if you file bankruptcyhave a tax lien on yourredi report or uaid studentoan those can stayonger up to 10 years and unpaid tax liens and defaulted student loan can stay indefinitely unt they are paid. gerri: why do i think the good stuff is away. just my intuition >> it is interesting you bring that up. the federal law that defines when bad stuff has to be removed from your crit report doesn't address good stuff, it is silent on good stuff so the credit reporting agencies could maintain good information on your credit reports for ever but they don' the bureaus have policies in place they wll remove inactive old accounts after a decade which is probably not a big deal becse by then you have likely established other accounts, but there is no arantee that your old great credit established when you were in your teens or 20s will hang out your credit report fover. gerr it doesn't surprise me in the least. what is your number one piece of advice for improving the credit score? >> that is an easy one. pick something that is actionable. not a lot you can do about it except for weight. the number oneay to improve your credit ore very quickly is to y off credit cd debt. that does not mean take it from 20,000 down to zero overnight. if you can chip away at , you would be surprised how quickly your score is going to improve because it does not have a memoryedia does not know you had more debt yesterday then you do today so the minueath goes down, the sre is going to go . gerri: big story today atms will issue prepaid debit cards. if y want to get oneof those you have to go to your corner atm d pull it out. we have not beenans because of the fees are not banks charging big-time fees what you make of this move? >>t doesn't surpri me. eventually you kind of ought the atm machine was going to be used for more than just balance inquiries antaking cash out. the fact some big banks undisclosed at this point are essentially reworking the inner workings of the atm machine to give out a prepaid debit card in addion to cash is a variable to you can pick and choose what you want doesn't surise me, another way to monetize th atm machine which they haven't had a way tourther monetize ttat machine, now they do. gerri: is means taking money ou of my pocket andutting it in their pocket. we're taing abouselling a product or we have toay to get access to my money. >> not only, you go to an atm machine unless you are in network you will pay e, likely pay a fee to get ts card because you have activated, load funds onto it, things that cost them moneyo they will suidizit by charging you money. it does not mean that the parade haded, you'll pay the same fees you pay on a prepaid debit card you purchase at a drugstore you got from your banker on th internet because you wanted to be like one of the pop stars who are selling them now. this is your money, after-tax money. now you are getting the bank tax on it to put it on a piece of plastic. gerri: some of the financial advisors as well. we he gotten a lot of attention. i don't want to pay that much for access to my money. >> i don't want to pay anything back. my money. gerri:ou know what, it is your money. >> we agree on that. gerri: have a great weekend. time now for the stories you are clicking on tonight on fox business.com. apparently enough is enough. after eight twoay plunge the mark endedn the green today. maybe they won't get so spooked the next and the fed tks about ending stimulus measures. get y to pay more for ur latte. hiking prices by 1% nationally starti on tuesday. that comes o to an increase of $0.10. for those who drink thosomment will be more like $0.40. on to the auction block next week. the bidding starts at $300,000 but estimates have it gng closer to $500,000. 200 computers were made, only 0 still est. go news for alec baldwin, government moving towardasing restrictions on e use of electronic devices during takeoffs and landings. it could come as soon as seember. those of the hot stories right now on foxbusiness.com. coming up, the government once again getting involved in the housin market but are they going too far thise? and we answer the question, how do you do that we have doggs onset, people. stay with us. announcer: where can an investor be name and not a number? scottre. ron: i'm never alone with scottrade. i can always call or stop by my local office. rothey're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybod i trade like me. that's why i'm with scottrade. announcer: scottradeproud to be ranked "best overall client experience." from the united states postal service a small designirm can ship like a big business. just go online to pay,rint and have your packages picked up for free. we'll do the rest. ♪ you are gonna need a wingman. and with my cash back, you are mone forgetim. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a tter way with crediards.com. comparhundreds of cards from all the major banks toind the one that's right for you. it's simple. search, compar and apply at creditcards.com. first round's on me. gerri:raveling with your 4-legged friend can be stressful. ♪ gerri:l, d gerri: don turn your next summer vacation into a guilt trip. leaving bend your furry friends to wreak havoc on your next vacation by bringing along uffy and fido isn't so easy so how do you do that? ining me now, pet trend allergist. >> thank you for having us. that is hannah, a three-year-old golden retrver, andhiis a six-year-old english y spaniel. gerri: i know so many people who wants to take the dog on vacation, it is not the easiest in the world. >> you he to plan ahead, find a destination that is pet friendly and safe for your g. gerri: what does that mean? where do you find them? >> start with aaaeuse aaa has the past book, great reprentatives to plan a pet friendly vacation. some are chicago, san diego. there are baseball games in the suertime, a lot of activities, there is the beach even in chico,an diego this wk having a surf dog competition, so lots of things to do. gerri: i am kind of reoccupied by the dogs because theyre so pretty. what do you need to do toet ready for the cation? >>ou want to make sure your dog is austomed to bei in the crate over here o the standard bag which you want to fly with. your dog is protected in the car or flying the plan. next stop,he end prottion very important and i tell people to definitely go with something like triple protection because he wants to make sure he will not be bringing the fleas me so it prevents tics. we have fd. food is really important. it is a chicken food. welso like the fact it has meet because it is hydrating for your pets. when you get to a city, can be stressful when youe traveling. your pet will get protein boost, what food hydrates your pet. gerri: some hotels are very ppy to have pets, very happy to have dogs. >> very happy to have pets. even cane ambassadors. onof the most famous dogs ever that exists, is at is real, really important. you don't want too forget him. the dogs are having a goodtime. last but not least, people are afraid of carryi bed bugs home. lot of times it happens you have yo crate where you have for example your bag people put them on the hotel rug. i suggest you put the bag or the crate in the bathroom with your food and water bowl. this way the bed bugs won't g in your bag or your crate. also, bed dog spray it will not harm the dog and spray it on the bottomf yourrate or you carrier bag. i don't think my husband would be happy if i came home without hannah. gerri: thank you so much for coming on, it habeen a easure having all of you here. >> thank you for havinge. gerri: coming up, don't fall for it, why you shouldn't pay somedy to take care of you student loans for you. and the stat state of california seizing mortges claiming imminent domain. next. n ne tht. ♪ in today's markets, a lot can happenn a second. with fidelits guaranteed one-second trade execuon we route your order to up to 75 market centers to look for the be possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more novative reason seriouinvestors are choosing fidelity. now ge200 free trades whenou open an account. ♪ ♪ [ male announcer if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. from our fox business stiewdz in new york, here, again, is gerri willis. gerri: growing number of states are taking another look at using imminent domain to size underwatermotges. no instead of flk losing homes oo foreclosure, they b it and cut the loan principle to match the current property value so you pay the loca government. is it lgal? with us now, the attorney dwien case, and liz weil. dwyaneings you say the point is there needs to be a way to force lenders to make deisions that are good for them. tell me what you mean b that. >> well, you know, some of the lenders, some of the things are in a trust, and they can't ite them back by law. if they follow the trust, the couldn't do it. there's got tbe a way. they want to in a lot of cases wre it back, and they can't do it on their own so there needs to be a echasm, nd this just seems like a way to do it. number one, the government started this mess, and have given -- gerri: forced the finger of a lot of people, my friend. >> i have to become very clear th you, don't like imminent domain, full disclosure becse generly the federal government comes in and take your land, you property,your mall, whatever it is, because they need to build a road or do something, and they don't compensate you. gerri:t's the loca governnt thatants to run the program. >> it's worse. if localgovernment runs it, how do we know hat the caps and balances are in the loca government? i'm sorry, i don't trust the idea. gerri: dwyane, it's interesting becase here's what's going on here. in theame of helping people who are underwater, and i've read e, you know, in the local newspapers, the editorials where the writers say, you know, look, we have to save thee communities because other side they are going to go d