Instead of wringing their hands as the housing market sinks, home builders have decided to ring up some sales. In the face of high inventories and low buyer interest, builders have decided that discounts are the better part of valor, dangling thousands of dollars of incentives on many homes and now simply cutting prices. The latest data on new-home sales show the strategy is working. New-home sales got a boost in September, but it cost builders a lot: prices of new homes fell nearly 10%, the biggest drop in almost 40 years. Those numbers follow a report Wednesday on existing-home prices, which were off 2.2% for the second month in a row -- although those declines have not spurred sales to any extent. This is pretty much how a free market should work. Builders, who lose money every day a home sits unsold in the subdivision, want to move that inventory so new-home prices can drop quickly and deeply. Homeowners, at least those not forced to move for business or financial reasons, have more to gain by staying put and waiting for the market to turn back in their favor so there is more resistance to steep drops in existing-home prices. In our lead story, Washington bureau chief Rex Nutting deciphers the latest housing numbers and tells you what they mean to the economy and to buyers and sellers. Read his Economic Report, plus learn how "absolute return" mutual funds may provide conservative portfolios with better returns than bond funds and find out why it is critical that you fill out beneficiary designation forms properly, on Thursday's Personal Finance pages. Looks like new-home customers have seen a "buying opportunity" in lower-priced houses. The only question is are they buying on the dip in a bull market or buying in at the start of a long bear. Steve Kerch, assistant managing editor/personal finance REAL ESTATEBuilders slash prices to sell more homes U.S. homebuilders slashed prices at the fastest pace in 36 years in September and managed to boost sales to the highest level in three months, the government said Thursday. See Economic Report.U.S. mortgage rates edge up As median house prices slipped, mortgage rates edged up, according to Freddie Mac's weekly survey. See Mortgages.CONSUMER WATCHConsumers should be wary of planners using the F-word: fiduciary You'd expect a group of well-heeled financial advisers gathering in a plush hotel to keep a civil tongue about them. See Chuck Jaffe.How to know if small claims court is right for you It's happened to everyone: You buy something only to find it soon damaged or defective due to shoddy workmanship. Or you hire a contractor to renovate your guest bathroom but the company never finishes the job. Of course you should try to resolve your problem with a succinctly worded complaint letter, but that doesn't always get the job done. Enter small claims court -- and no, it's not just for daytime television. See Marshall Loeb's Daily Money Tip.ESTATE PLANNINGWhy proper beneficiary designations are critical Dying of leukemia, Lisa K.'s husband worked quickly to get the family's financial "ducks in a row" for the benefit of his surviving wife and children. But as an e-mail from Lisa made clear, no matter how diligent you think you are problems can spring from anywhere. In Lisa's case it was in not understanding the implications of the way the beneficiary designations were filled in on her husband's life insurance policy. The oversight has stuck Lisa with having to account to a court every six months, being visited by court representatives every three years and working with a guardian ad litem appointed for her children. See Tax Watch.HEALTH CARE �