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New Home Sales Down 14.5% in March


iStock/Thinkstock(WASHINGTON) -- For the second month in a row, the number of Americans purchasing new homes has taken a plunge.

The Commerce Department reported on Wednesday that sales of newly-built homes dropped more than 14 percent in March to the lowest rate since July of last year.

"[It's a] bit of a surprise that it dropped so severely after we've gotten past most of the weather effects," says David Crowe, chief economist for the National Association of Home Builders.

Compared to a year ago, new home sales are down sharply -- 13.3 percent.

Crowe says changed requirements for mortgages may be behind the drop.

"We've had tightened mortgage standards. We've had new requirements put in place as a result of legislation that was passed a couple of years ago, and the result has been blocking out a fair number of potential home-buyers. I think that's the primary reason behind the dramatic fall," he explains.

He says he expects a decent return for the rest of 2014, "but it does depend heavily upon Congress coming up with solutions to how the federal government backs mortgages."

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Satisfaction with Airlines Is Very Low, Survey Finds


iStock 360/Thinkstock(NEW YORK) -- Don't expect too much when you fly.

According to a new survey of consumers, airlines have the lowest customer satisfaction ratings of any travel-related industry.

“It doesn’t surprise me, especially with so many mergers: the labor forces of so many airlines have been faced with compensation cuts, changes in corporate culture,” says travel blogger Brian Kelly of thepointsguy.com.

“Airlines’ employees are not happy, and that trickles down to the consumer,” he adds.

This summer during peak travel times, Kelly says, it pays for passengers to know their rights in case they are bumped from an overbooked flight. But don’t go to the airport with attitude.

“You’ve got to set your expectations, enter that airport with your goal, which is to get to your destination and take things as they come,” he says.

Copyright 2014 ABC News Radio

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Why Apple Can't Quit Steve Jobs


Apple, Inc.(NEW YORK) -- Despite Steve Jobs' advice to never think about what he would do, the ghost of the visionary founder still rules at Apple two and a half years after his death, according to industry watchers.

The late CEO's voice is heard at the beginning and end of a video showing off Apple's eco-friendly and futuristic-looking office space that gained renewed attention online this week -- just another reminder of the inextricable link between Jobs and the brand he built.

"Despite having been gone for two and half years already, we are still waiting to see what Apple will be like without him," Eric Slivka, editor-in-chief at MacRumors, told ABC News. "[Jobs'] legacy has carried on within the company and its executives are undoubtedly following in his footsteps in many regards, but Apple is [also] undoubtedly evolving under Tim Cook."

As Jobs' hand-picked successor, Cook has steered the company through two and a half years of increased competition from competitors, including tech giant Samsung, but hasn't introduced the next "breakthrough" product.

Apple is scheduled to release its second quarter earnings after the closing bell Wednesday, and many analysts, including Brian Colello at Morningstar, are predicting flat results as Apple fans wait for the next big thing. Apple did not immediately respond to a request for comment Wednesday morning.

The forecast “doesn’t point to much growth,” Colello said, another sign that Apple is moving sideways.

Slivka added: "It won’t be until we do or do not see another breakthrough product segment from Apple that we’ll have a better idea of what the future holds for Apple without Jobs."

"It’s been four years since the iPad was introduced, which to some feels like an eternity but in reality isn't particularly long when you look back to the iPhone in 2007 and the iPod in 2001."

Patrick Moorhead, principal technology analyst at Moor Insights and Strategy, told ABC News that Jobs' presence will continue to be a part of the company for the foreseeable future, but that Cook also deserves credit for his stewardship.

"I don’t think Tim Cook is trying to come off as Steve Jobs. I think he’s trying to take it to the next level, a company that can be great for the next 25 years. I think we will have to see. Apple will have to bring out a category killer product or they risk losing that luster," he said.

On Tuesday, Apple unveiled a new advertising campaign touting its green initiatives and included an introductory video narrated by Cook. While "think different" may have been ingrained in the Jobs era, Cook tried out a new line: "Better."

"Better. It's a powerful word, and a powerful ideal," Cook says in the introduction. "It makes us look at the world and want more than anything to change it for the better. To innovate, improve, to reinvent. To make it better."

Yukari Iwatani Kane, who wrote about Apple after Steve Jobs in the book Haunted Empire, told ABC News the video is even more proof that Apple has changed since Jobs died, even though she said the company might not want people to think so.

"What you’re seeing there is Apple trying to create a vision without Steve Jobs and personally to me, I wasn’t very convinced by it," she said.

"Steve was Apple and Apple is Steve. It was all about him. ...Now that he’s no longer there, Apple has to forge an identity of its own. Apple stardom was there in part because of Steve’s stardom. Who is the star now?" Kane asked.

Copyright 2014 ABC News Radio

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New Green Sriracha Heats Up Competition for Rooster Brand


Musahi/Huy Fong(NEW YORK) -- Could a new green sriracha unseat the famous red rooster sauce as a favorite condiment of spice lovers everywhere?

Midori Green Sriracha, sold by N.Y.-based Musahi foods, calls its sauce a "unique Japanese interpretation of the classic sauce."

Company president Gideon Sarraf told ABC News his creation is made from green chilies, which he called "a little hotter and more flavorful than jalapenos," and rice vinegar, among other "natural ingredients."

Sarraf said his sriracha is also thicker than the famous Huy Fong Foods red sauce.

Sarraf took shipment of the first green sriracha about 30 days ago, he said. It was something he had been making for himself for a while, and he just had a feeling if he could get the word out on the product the "marketing would do itself." His company is just six months old.

Right he was. Since the first news story on his product appeared on Monday, the response has been tremendous. After getting off to a slow start in the first few weeks, the company is now taking an order every two to three minutes, he said. On Amazon, sales are up 162,000 percent in just a few days, a number, he said, that "doesn't even make any sense."

Right now, the sauce is sold online at the company website and on Amazon. Sarraf said it's available in a few retail stores in New York right now, but that he is in talks with "a ton" of distributors and retailers. He said the goal is to get his product mainstreamed into supermarkets as soon as possible, and said he had no interest in limiting it to gourmet or specialty shops.

Timing may be everything, even when it comes to condiments. Sriracha has made headline after headline in recent months, from December's speculation about a worldwide sriracha shortage to recent news that one California city has declared a sriracha factory a public nuisance.

A representative for Huy Fong Foods could not be immediately reached on Wednesday by ABC News for comment.

But does Sarraf expect to hear from the makers of the red sriracha? "I haven't yet, and I very much doubt I will," he said.

Copyright 2014 ABC News Radio

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Why Dorian Satoshi Nakamoto Wants to Hug Bitcoin Community


aantonop/Youtube.com(NEW YORK) -- Dorian Satoshi Nakamoto, the man who has denied allegations that he is the founder of Bitcoin, said in a new video that he wants to give the crypto-currency community a big hug to thank its members for their support.

It’s one expensive embrace. More than 49 bitcoins, amounting to nearly $24,000, have been donated to help Nakamoto clear his name since he was identified as the Bitcoin founder -- reportedly someone called Satoshi Nakamoto -- in a Newsweek article last month.

“I want to hug you, this 2,000 of you, who donated. I’m very happy, each one gives me a tick in my heart,” Dorian Satoshi Nakamoto said in the nearly three-minute-long video.

“My name is Dorian Satoshi Nakamoto and, of course, if I was the creator I would never use my real name,” he said. “So, from that point of view, I’m sure you guys would know that Satoshi Nakamoto is not me.”

For a guy who said he had nothing to do with bitcoin, Nakamoto now has an account, thanks to the donations, and said he plans to keep it for “many, many years.”

“Hopefully, I can also contribute as you did to me,” he said. “Thank you.”

Copyright 2014 ABC News Radio

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Disney Theme Parks Reimagining the Wait in Line


Disney(ORLANDO, Fla.) -- Amid all the instant gratification of today’s world, people still have to endure waiting in lines.

According to Dr. Richard Larson, a renowned expert in the physics and psychology of lines at Massachusetts Institute of Technology, people hate waiting because it’s a momentary and involuntary imprisonment.

“Once you get it into your head, you see them everywhere,” Larson told ABC News’ 20/20.  ”And you experience them everywhere.”

Larson said no one does a better job of managing long lines than the Disney theme parks run by ABC News’ parent company, The Walt Disney Co.

“We want you to have so much to look at or do or entertain your kids,” Kathy Magnum, creative executive of Walt Disney Imagineering told 20/20. "Cause kids aren’t the best line waiters, right? They’re a little impatient…If your kid’s having fun, you’re a lot more patient.”

Disney’s theme park line management is an extension of their entertainment philosophy. At Disney World’s Dumbo the Flying Elephant ride, children and their parents can play in an interactive room that resembles a circus tent.

While they’re playing, they’re also waiting for a buzzer to go off that signals it’s their turn to go onto the outdoor line for the ride.

“These kids in this tent, playing, they don’t have the perception that they’re waiting in line, but that’s what they’re doing,” said Magnum. “And their parents are having a ball because they’re escaping the heat for a while, their kids are having a good time, and they’re enjoying that.”

Other techniques Disney’s theme parks use to manage lines include interactive technology along the way, with games and touch screens, and providing comfort in the form of fans and shade to help visitors cool off. And there’s FastPass too, where you can skip the line by reserving in advance, even on mobile phones.

“People come here to have fun, first and foremost, and we want them to have a great experience,” Magnum said.  “And if you’ve got the perception of spending less time waiting, ’cause you’re having so much fun, we feel like we’ve done our job.”

Watch ABC News’ 20/20 on Friday, April 25 at 10 p.m. ET.

Copyright 2014 ABC News Radio

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Employment Outlook Brighter for College Grads


Digital Vision/Thinkstock(NEW YORK) -- It’s good to be a college graduate. Or, at the very least, it’s better than it was last year.

An update of the National Association of Colleges and Employers' job outlook finds that employers will hire 8.6 percent more graduates this spring, compared to the same time in 2013.

Employers that responded to the NACE survey indicated that they’re mostly looking for business, engineering and accounting majors with bachelor’s degrees. In fact, seven in ten companies specifically want business majors.

Grads who will likely struggle to find work will be those who got their degrees in health science and education although Andrea Koncz, employment information officer for NACE, points out that the preponderance of respondents were from the finance, insurance and real estate industries.

As for who can expect to earn the most with their bachelor’s degree, it's petroleum engineering majors with a starting salary of $95,300.

While companies expect to employ more grads in 2014, Koncz says the numbers are still on the flat side because the rate of increase is really no different from previous years.

Copyright 2014 ABC News Radio

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Drones, Phones and Mind Maps Make MIT List of Technology Breakthroughs


iStock/360/Thinkstock(NEW YORK) -- Cool ideas to power the future: Drones for farmers, brain mapping for neuroscientists and super-private smartphones are among the 10 breakthrough technologies highlighted in the new annual list by MIT Technology Review.

The magazine’s rundown is a reminder that innovations will continue to change the way we live and, in many cases, offer improvements.

A new mind map, a decade in the works, “shows structures of the brain in far greater detail than ever before,” and gives neuroscientists new ways to look at the brain’s incredible complexity.

The magazine also reports on new efforts to build smartphones for the Snowden area. New models are being introduced with extra security and privacy that would make it far more difficult for eavesdroppers to monitor phone calls.

With growing populations, demand for food continues to rise. “Relatively cheap drones with advanced sensors and imaging capabilities are giving farmers new ways to increase yields and reduce crop damage,” says the Review.

Copyright 2014 ABC News Radio

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Online 'Dating' Site for Dogs or Cats


iStock/Thinkstock(NEW YORK) -- It’s like online dating -- except for people seeking dogs or cats or chinchillas or whatever else may be the perfect pet for them.

“It’s exactly like using Match.com,” says Darrell Lerner, who ought to know. Before he founded pet-finder site Allpaws (which currently has 82,960 pets awaiting adoption), Lerner co-founded SNAP Interactive, the developer of AYI (Are You Interested?), a dating application on Facebook with, he says, some 70 million installs.

Allpaws, says its website, “Takes online pet listing in a new and exciting direction by offering an online dating style interface complete with advanced search tools.” Those include some 30 different search filters, Lerner tells ABC News.

Adopters (we hesitate to call them “early adopters,” although the site launched only this past January) can search by type of pet, breed, location, gender, age, size or friskiness. You can search for a bird who’s great with children, a senior cat or a special-needs chinchilla.

The site lists over 49,000 dogs, over 31,000 cats, 1,208 rabbits and 272 horses -- not to mention 658 animals “small and furry,” 79 that hail from the barnyard and 238 slitherers and other assorted reptiles.

Meanwhile, PuppyFind.com, as its name implies, matches puppy-seekers with breeders. “We’re puppies-only,” says Mike Peters, head of business development.

Peters tells ABC News the site lists some 50,000 puppies (from 300 different breeds), some priced as high at $3,000 per pup. The site makes money by charging breeders a flat fee. It exists only to connect buyers and sellers. From there, it takes no further role in the transaction.

The site, says Peters, was the target of scammers some years ago -- people falsely claiming to be breeders, many doing business from overseas. They would list puppies for sale and collect the money. Then Fido would not be forthcoming. Such scammers, in their sales blurbs, would tell heart-tugging tales explaining why they had to sell their Dalmatians at fire-sale prices, he says. The cons were cousins to those now in circulation, for example, where a man trapped in the Cairo airport promises to send you a check for $1,000, if only you will wire $350 so he can get a new passport.

PuppyFind, Peters says, has since installed security software that makes such scams harder to perpetrate.

Miranda Furtado, 28, of Toronto, Canada, tells ABC she used PuppyFind last November. The self-described editor, guru and broadcaster -- founder of a website that delivers sports news to women (BabesDigBalls) -- says she had always wanted a French bulldog. She calls finding the right dog online a higher-risk proposition than online dating.

“With a puppy, you’re putting money down,” she explains. “I wasn’t even sure the dog would show up.”

But he did. And Elvis (so-named because he has a cleft lip) has since turned out to be “an amazing dog.”

His lip was not a defect in Furtado’s eyes, since it made him a cheaper buy than a Canadian bulldog would have been. “Here, they’re really expensive,” she explained.

Elvis is the best dog she has ever had, says Furtado. “I couldn’t be happier,” she says.

Copyright 2014 ABC News Radio

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Hotel Industry Fighting Back Against Airbnb


Chris Weeks/Getty Images for Airbnb(NEW YORK) -- With hotel prices soaring nearly 20 percent in the last four years, websites such as Airbnb.com that offer short-term rentals, typically at a fraction of the price of hotels, are booming.

For homeowners like Gaston and Alexas de los Reyes, it’s a way to earn a little extra money. Through Airbnb, they rent out a studio in their Philadelphia home.

“It’s very reliable and significant source of income for us,” Alexa de los Reyes said.

For travelers, it’s a way to save money. In New York City, a one-night stay in a one-bedroom, one-bath apartment runs as low as $100 through Airbnb. A hotel room in Times Square, on the other hand, could cost as much as $700 a night.

Now some lawmakers in cities like New York and San Francisco are crying foul, suggesting these types of rentals in their towns are basically “illegal hotels.”

New York’s attorney general faced off with Airbnb in court Tuesday, alleging that many of the rentals in New York City are illegal and that they cost the state tens of millions of dollars in unpaid sales taxes.

Airbnb calls the case a “government-sponsored fishing expedition” and says it is “proud to stand up for our hosts who share their homes and against this over-broad [case].”

Hotels are also joining the fight against Airbnb.

“These illegal facilities are impinging on available housing stock, lost revenue for the city and potential job losses for the tourism industry,” a spokesperson for the Hotel Association of New York told ABC News.

 


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Bill Ackman’s Secret Deal for Herbalife Whistleblower


Stephen Lovekin/Getty Images for Rubenstein Communications(NEW YORK) -- In his year-long campaign against the embattled Herbalife company, Wall Street hedge fund manager Bill Ackman secretly promised a disgruntled former company executive as much as $3.6 million over 10 years if he lost his job after providing information to government investigators and the media.

Ackman’s firm so far has paid the whistleblower $80,000 under the arrangement, according to the former Herbalife executive’s lawyer.

“It was the right thing to do,” Ackman told ABC News.

The hedge fund run by the prominent Wall Street investor, known for his “short” positions, stands to make $1 billion if the price of Herbalife’s stock collapses as a result of his allegations the company is a fraud, a charge the company strongly denies.

The agreement between Ackman and the former executive, Giovanni Bohorquez, was signed in June 2013 but required both sides to keep it confidential.

Two months later, the New York Times published a critical article about an alleged problem in 2011 at an Herbalife manufacturing plant based on internal documents provided by a person described only as a “former employee, who was granted anonymity out of fear of retribution from the company.” The article said the former employee’s legal bills were being paid by Ackman.

Herbalife says the former employee is Bohorquez and that any alleged manufacturing problems were quickly and safely resolved.

In December, after extensive discussions with his attorney, Bohorquez agreed to be interviewed on camera by ABC News for a report about his experience inside the Herbalife executive offices.

During the on-camera interview, which Ackman’s public relations team helped to arrange and which Bohorquez’s attorney attended, Bohorquez flatly denied he was being paid anything by Ackman or receiving any benefit other than his travel expenses and lawyers’ fees and legal costs.

“I’m not getting a benefit,” he said.

Asked last week why he did not disclose the additional arrangement with Ackman during the interview, Bohorquez said his answers were truthful because he had not invoked the provisions at the time and so had not yet collected any money.

“I didn’t tell you because I was not looking at using it,” he said.

His lawyer, Stephen D. Alexander, said ABC News did not ask “the right questions” and should have assumed there was more to the indemnification arrangement for Ackman to cover legal costs than Bohorquez said.

“We described the fact that he was indemnified for litigation,” Alexander said, but added, “We never told you, I admit, about the terms of the indemnification agreement.”

Bohorquez, who left Herbalife in 2011, said he lost his new job at a chain of laundromats before the ABC News interview due to the stress of being a whistleblower. He said he began collecting the $20,000 monthly payments under his arrangement with Ackman a few weeks after the ABC News interview because his wife had also lost her job.

“This opportunity to do justice to the things that I saw came up, and Pershing Square [Ackman's hedge fund] indemnified me from what would happen if I were to lose my job,” Bohorquez said.

Ackman said he thought Bohorquez and his lawyer had disclosed the deal.

“He should disclose it, absolutely. Absolutely,” said Ackman.

But Ackman’s own public relations team also failed to reveal the secret arrangement prior to the interview.

Bohorquez’s lawyer, Alexander, finally revealed the secret arrangement to ABC News in March after a New York Times story raised questions about financial ties between Ackman and others speaking publicly against Herbalife.

Ackman said he agreed to the deal after Bohorquez balked at going public because he feared his disclosures could make it difficult for him to find work at an executive level.

“Giovanni could not afford to take the company on. We thought his story was important,” Ackman told ABC News. “Being a whistleblower is a very dangerous thing to do if you want to get a job."

Bohorquez is one of the few insiders to ever talk critically about Herbalife.

Under the terms of the generous deal, a copy of which was provided by Ackman, Bohorquez was entitled to receive as much as $250,000 a year for 10 years if he lost his then-current job at a national chain of laundromats as a result of his “disclosures” to the media or the government.

The contract provides a five-percent raise every year, and $500,000 more if he loses out on possible public offerings from his then-employer. If he finds a new job that pays him less than $250,000 a year, Pershing will make up the difference. Taken together, the total value to Bohorquez over 10 years could be as much $3.61 million.

The deal requires Bohorquez to actively look for work and to be truthful in all of his statements about Herbalife to the media and government.

“You should judge for yourself whether Giovanni is an honest man or not,” Ackman said. “I think Giovanni will be viewed as a hero.”

Ackman acknowledges spending more than $20 million in a lobbying and media campaign against Herbalife.

“I will pursue Herbalife to the end of the earth,” he told ABC News.

Copyright 2014 ABC News Radio

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Assessing the Damage from the Heartbleed Bug


iStock/Thinkstock(NEW YORK) -- The Internet didn’t stay broken-hearted from the Heartbleed bug for long.

Heartbleed, which even has its own logo, helped raise awareness about online security, and as a result, it appears many sites have now patched security flaws and prompted users to change their passwords.

The bug exploits a flaw in Open SSL software that leaves private information, such as passwords and credit card information, up for grabs on sites that aren’t protected.

Sucuri Security of Menifee, Calif., did an analysis of websites ranked by Internet traffic company Alexa last week and found that the top-ranked 1,000 websites were all patched.

Of the top one million websites, Sucuri found that 20,320 -- 2 percent -- were still vulnerable, according to the company’s blog.

San Diego-based security firm Websense reported similar findings and said that in a scan of 50,000 top-ranked websites, at least 800 were still vulnerable to Heartbleed.

Mark McCurley, senior information security adviser at Identity Theft 911, said Lastpass.com/heartbleed can help you check to see if a site is vulnerable. You can also ask the company or website if they have fixed potential flaws, then update to a strong password, using numbers, upper case, lower case and symbols, McCurley said.

Copyright 2014 ABC News Radio

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Stocks Climb as S&P 500 Rises for Sixth Straight Session


iStock/Thinkstock(NEW YORK) -- Wall Street trading climbed higher Tuesday, getting a boost from pharmaceutical companies.

The Dow Jones Industrial Average closed up 65 points at 16,514.37. The Nasdaq Composite gained nearly 40 points at 4,161.46, and the S&P 500 ended the session up 8 points at 1,879.55, marking gains for a sixth straight session.

News of mergers in the pharmaceutical industry lifted stocks, with Botox maker Allergan surging following an announcement from Valeant Pharmaceuticals that said it teamed up with activist investor Bill Ackman to make a bid for the company. Meanwhile, Swiss pharmaceutical company Novartis claims a number of multibillion-dollar deals will boost its profitability, but the changes will affect an estimated 15,000 employees.  

After the bell, AT&T reported first-quarter earnings that barely beat estimates, joined by McDonald's, which announced lower profits.

Home sales fell in March to the lowest level since 2012, according to the National Association of Realtors.

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Limited Supply Responsible for Drop in March Home Sales


iStock/Thinkstock(NEW YORK) -- Home sales fell in March to the lowest level since 2012 thanks to a limited supply of homes and relatively higher prices, according to the National Association of Realtors.
 
In a positive sign, first time home buyers made up 30 percent of home sales. This is still below historical standards, but the highest in a year.
 
What the housing market now needs is more home construction.
 
A combination of a lack of loan availability and a shortage of labor is among the reasons holding back new construction, says NAR chief economist Lawrence Yun.
 
Yun says that a lack of migrant workers is among the reasons for the shortage. During the boom years a lot of migrant workers were on construction sites, but during the bust many of them left.  And now home builders say they are having a hard time finding those same sorts of workers.
 
We may also want to keep in mind that March was very cold in much of the country, and that weather likely had an impact as well.
 
Copyright 2014 ABC News Radio

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Hotel Prices Up 250% for Kentucky Derby Weekend


Getty Images(NEW YORK) -- Big hats, big race and even bigger hotel prices. That's according to Trivago.com, a travel website that's tracking prices at Lexington, Ky., hotels over Kentucky Derby weekend.

Those prices are tracking high -- an average of $423 per night. That's a 247 percent increase as compared to the following weekend, when rates fall back to a much more reasonable $122 per night.

In other words, be prepared to pay up for a place to sleep off all those mint juleps.

But paying up doesn't seem to be a problem: Trivago reports it has less than 8 percent hotel availability in Lexington on Friday, May 2 and 11 percent on Saturday, May 3. The race is on May 3 and marks the 140th running of the race.

Skyrocketing hotel rates around major sporting events are not unusual. Super Bowl hotel rates were, at one point, up as much as 550 percent.

But there is a bit of good news: Rates for a room in Lexington on Derby weekend are 7 percent less expensive than they were last year on the same weekend.

Copyright 2014 ABC News Radio

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