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Home sales fell

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to a 13 year low
in October as prices rose,

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according to the National Association
of Realtors.

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And 30 year fixed rate
mortgages are inching up.

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What does this all mean for
would be buyers on the sidelines?

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Business columnist
Larry Edelman is following the trend lines

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and joins us now.

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Larry, when the Fed dropped
interest rates in September,

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the hope was that housing prices
would drop, too.

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That didn't happen. Why not?

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Well, it's going to take a while
for the interest rates

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from the Fed to really flow through
and be felt by people,

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you know, in the ordinary economy.

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The problem the problem right now
is that the long term interest rates,

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which really affect
mortgage rates, are going going up.

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So you haven't seen the drop
in mortgage rates

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that one would expect
when the Fed begins cutting.

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So right now,
you know, interest rates, 30 year

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fixed mortgage
about six and a half percent.

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Not much change from when before the Fed
started cutting rates.

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What trends are you watching for
in the housing market this October?

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I mean, is it looking like trick
or is it looking like a treat?

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I think it's more like tricks.

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You know, prices aren't
going to fall much, if at all.

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What we the best we can hope for
is that prices

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slow down in terms of how fast they rise.

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And, you know,
we haven't quite seen that yet.

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But if the Fed keeps cutting rates,
which is expected, I think you'll see

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prices start to come down as more people
put their house on the market.

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So what's the advice
then to would be buyers or sellers?

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You mentioned the Fed looking
like they're going to keep cutting rates.

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Is that their next move
and how does that affect us?

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Yeah,
the expectation is that when the Fed meets

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in November, early November, they will cut
interest rates by a quarter of a point.

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That will help.

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But, you know, it's
not going to make a huge difference.

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The fact is that if you need to buy
a house, you're going to have

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to buy a house.

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Six and a half percent seems high.

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But relative to where they were,
say, 25, 30 years ago, not so bad.

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And, you know, prices.

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Should the price increase,
as I should say, to start to moderate.

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So, you know,
if you held tight for a year,

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probably be easier
than, you know, cheaper than it is now.

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I hope people are complaining about six
and a half.

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You know, percentage it was nine
back in the eighties, Larry. So

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got my first house, 9.25%.

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And Bank of Boston.

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9.2. Inside with little more. But

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business.

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Business columnist Larry Adelman,
thank you so much for joining us.

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Thank you.

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