and we hope to talk to her later on the show. scott, you have some final trades >> sure. lyft, ly-y-f-tl-y-f-t. i like the final call we're seeing during the show i bought that one during the show >> interesting stuff guys, thank you. we'll keep an eye on what the markets do i know kelly evans is doing that, because she begins "the exchange" right now. thank you, scott hi, everybody, and here's what's ahead of us. the battle over jobless benefits would extending the extra $600 a week help or hinder the economy? with payments of millions of americans hanging in the balance as congress works on a compromise we'll have that debate from 30 bucks to 23, back to 30 bucks again the electric truck maker is ahead as a company tonight a reality check with rates at fresh lows. a look the what you actually

need if you plan to retire post-covid rahel solomon with those numbers here rahel? >> you can see the dow and s&p both in positive territory the nasdaq, this is a little different, in negative territory. this happened in the last hour or so and comes shortly after the open apple, one of the top contributors to the dow right now. of course, we continue to watch for it to cross that $2 trillion market cap milestone, so the magic number for that to happen would be 467.77. i'm still working on my handwriting, but watch that level trading closer to 438.71 at this point. also we're watching ford also in focus after the big shake-up in the company suite. jim will retire and be replaced by chief operating officer jim farley that happens october 1st that should go up 37%, so watch that stock finally, watch airlines all

trading higher today american airlines leading the way. the last time i checked, 5%. still up 5%, jetblue up 3.5% these are second day gains for many of them, kelly. southwest the laggard here, up almost 1%, if you can call it that >> we'll round up. rahel, thank you very much now let's get to washington where negotiations over the stimulus package is still ongoing. kayla tausche is here with where things stand at this hour. kayla? >> representatives and congress are expected to meet again at 3:00 p.m. today in nancy pelosi's office. yesterday didn't yield a deal but it did yield some positive rhetoric with senator democrat chuck schumer saying there did appear to be an agreement with a sense of urgency to move forward. but this morning on the partisan

floor, it seemed the gloves were off. >> the democrats are blocking it all. it seems like there is a pause merely keeping a civil tone with the president's team never mind, they're still obstructing any action for our country. >> the republican leader is so tied in a knot by his own caucus and his president that all he can do was give alice in wonderland partisan speeches >> it remains unclear whether there has been any compromise reached on any of the substantive portions of the proposals that either party has put forward. kelly, we talked a lot about the fact that the deadline for those eviction protections and expanded unemployment benefits have already passed. but there are also some other deadlines coming up, notably this saturday is the last day that companies who have not received a small business loan could apply for those loans, and then, of course, at the end of september, many large air carriers and national security companies, the restrictions on them keeping employees employed run out there.

so certainly there are many dates on the calendar to look forward to we will see whether this meeting yields anything, and we also expect the white house to give a briefing momentarily and could give an update there as well kelly? >> kayla, what's the deadline for congress here? >> it would seem that the deadline already passed, kelly, a couple weeks ago when republicans came back from congressional recess they were talking about the end of the month as their deadline the treasury secretary said it was his intent to pass something by then. certainly the differences between what the republicans then released and what the democrats had passed in may are very stark republican senate leader mitch mcconnell on the floor basically blamed democrats for dragging their feet for the last week, even though it has been about two and a half months since democrats passed their plan. kelly? >> kayla, thank you very much. kayla tausche with the latest there. the big question is will

extending the $600 a month unemployment benefits help or hurt the economy others say it's essential to keep the whole economy going with me are barry knapp and bill rogers, chief exist at the heldridge center at rutgers. he was in the labor department under president clinton. it's great to have you both here, and bill, i'll have you make the case as to why extending the $600 benefit is necessary. >> number one is we've basically begun to build a bridge to recovery, and if you drop off the 600 to $200, you're actually removing one of the spans. what happens is you have the economy then growing, because we've turned the spigot on, but not fast enough. the aggregate demand and need for workers is not as great. i would agree, if we were having a strong and robust economy and

job growth, i would agree. the research does show when you have generous benefits they end up retarding or lowering the desire for people to work. but the problem is, the reasons other people are not working is because of child care, is because they're fearful of getting back into the workplace and they may have a preexisting condition where they could get sick, so, you know, the issue here is not only these benefits but also providing state and local governments the needed aid, because if you don't do that you'll also then create a problem where you're not going to have the needed demand to support pushing workers back into the workplace >> there has been a lot of research lately, barry, demonstrating there is no negative effect on the labor market from extending the unemployment benefits. there was a yale study, even isi said they did not see keeping people out of the work force but you feel differently why? >> you had steven davis on last week talking about the yale

study and how the yale study didn't really look at people who didn't have a job to go back to, they looked at people that were invited back to their old job. but i don't think that's germane it's still early in the crisis as that professor just detailed. there is a question of demand at this point, and there is no doubt that, you know, the transfer payments made a big contribution to that v shape or what i've been calling y shape recovery and consumption that's taken place so far, at least in terms of core retail sales the question is, and this is -- the government is really good at adding stimulus, whether we're talking about the fed or the fiscal authorities they're not so good at removing that stimulus. my best contacts in d.c. tell me we're probably headed into something more like $400 per week with both a state contingency that the democrats are pushing for. you know, it will remain in place until the unemployment

rates hit x percent as well as a time expiration that the republicans are asking for because that time expiration is so crucial, if you go back to the last business cycle, 2014 was a shocking year, right we fought over this extension to 99 weeks of unemployment benefits for years finally in 2013 it ended, and if you look at what happened to the labor market in 2014, it had its strongest labor force growth the entire business cycle five years into the business cycle. >> right >> you had an incredible pickup in what davis calls worker reallocation which is the quarterly sum of hiring and separations. that's the dynamism of the labor market that led directly to a big jump in the atlanta fed wage tracker, which is probably the best in wage measure out there you know, the labor force participation employment ratios

improved that year, so we have to be careful how long we keep this stimulus in place, and that's really my argument is that we do need to cut it to a level that's not disincentivizing people, and it needs to be contingent with a time borne on budweiser data >> the expiration date bill, let me turn to you to respond to that, and perhaps the difference here is how far we are into recovery. in this case it's a sharp one, it has a sharp rebound, but we're only a few months in in 2014, we were several years in what would your response be? >> i agree with barry in that i think at the end of the day, we'll probably see some kind of triggers or some kind of sort of stepping down. collinsville does something similar to that. to address the concerns about using a study that was early on, i'm looking at the ui claims and matching them up to the list of

states there are 36 states that have their positivity rates for the covid virus that are above 10%, and what i'm finding is that over the last, say, five to six weeks, when you track this data, you end up seeing that states with -- that are on this list with 10% or higher on their positivity rates, they have higher ui claims this is our best indicator of where the economy is going and also the longer you're on this list, meaning your positivity rate exceeds the 10% range, your claims are higher, too. so that for me is one of the real big energies of why i'm concerned about pulling back from the $600 at this moment the other thing, too, we have to remind ourselves many americans, particularly those who have been hardest hit by this pandemic, they were already fragile economies, fragile households prior to the pandemic and to the recession. for me i'm actually quite happy

that people are getting amounts of money that are close to or might be above what their take-home pay was, because hopefully they're using it to pay off that preexisting debt and also to pay off debt that they incurred as the pandemic emerged on them. and barry used the word stimulus this is stimulus compared to, say, a payroll tax cut which is what the president wants to do you get a bigger bang for your buck using ui benefits >> and i wonder if we need not just a state and time contingency, but maybe a covid contingency on the states where you're 10% positive of your testing rate congress has a lot on its hands. gentlemen, thank you for the argument today it's been good having you here today. barry knapp and bill rodgers on the future of benefits let's switch to markets with big headlines this afternoon gold hitting the $2,000 mark to

hit a record high of 2.$2.19 a share. meanwhile, the nasdaq hit another five day win streak. the s&p touched its higher intra-day level since fed. let's welcome in gina sanchez, ceo of sanchez global and area investments. gina, i'll start with you. what's your expectation of gold today? >> they're not surprising. the conditions that helped fuel a rally in gold are present and continue to be present if you look at when gold performs well, it tends to be when interest rates are low or falling. and that's a check mark there. if there's uncertainty in the markets, that's a check mark

there. if there is concern around the strength of the dollar so all these things taken together are continuing to fuel gold, and you just -- you have nowhere to turn to for yield and so the rally in gold has been extraordinary since the beginning of the pandemic, and i think it actually has a ways to go >> all right and charlie, i know in the meantime, you've been watching the value stocks which are extremely cheapo, as we all know i'm curious what your advice to investors would be and how plunging rates factor into that. >> well, we think the most dangerous words in the world are "these times are different" in the face of extremely high deficits and federal borrowing at some point people are going to demand a real return on the money they lend to the government, and i admit i've been saying that for more than a year, more than a couple years,

but at some point 50 basis point return on the tenure makes no sense. so when that ends, it's going to be painful for bond holders. the math is really ugly. you should do the math on what a 150-basis point move if we moved to a ten-year would do to people who bought a ten-year today. so avoid a ten-year is my first advice number two, when the government spends much more than they take in, they do it in some form of printing money, and that tends to reduce inflation, and that's good for gold but it's not good for interest rates >> i see you almost ducking as you lay out the argument, because as we know it, it has been such a treacherous time for making this case for investors it's probably as much as how to avoid mistakes as it is positioning for the certainty that inflation is coming on the equity side, what would your recommendations be? >> we believe that you have to buy things that are trading at a discount to their instricken

si - intrinsic value, that stocks have a value your claim is to the future cash flows of the company there are a great amount of stocks trading very cheap compared to their intrinsic value. they tend to be more industrial, they tend to be financial services firms, they're not technology firms, so we're very excited about being able to buy goldman sachs at less than book value or mosaic, the fertilizer company as what we think is a big discount or globe warner or viacomc kr cbs. there are some very attractive companies. >> gina, what would your recommendations be >> we completely agree there it's really hard right now to find good value. the only value type play that seems to be working has been the

resurgence of financial. the financial sectors is the only sector that has started to gain some momentum from a cheap place. everything else, if it was cheap at the beginning of the year or at the beginning of the pandemic, it is still cheap, and if it was expensive, it's continuing to be expensive the momentum has definitely been twulg fueling a lot of these markets financials is the only way to get anything at a decent price right now. >> i'll leave it there thank you both for making the case for some contrarian picks today. coming up, one analyst says investors should buy nikola ahead of its results right now how much money do you need after covid-19 has pushed rates to record lows

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it's your wireless. your rules. only with xfinity mobile. call, click or visit a store today. stoo . welcome back it's been a wild ride for shares of nikola. they're up 10% since going public in june, but the stock went to $90 before dropping as

low as 30. they're at 37 right now. they're expected to become -- tell results of going public tonight, and it is suggested you buy their stock before then. emmanuel, are they making cars >> they will have a few electric trucks by 2023 >> to be clear, i meant by are they making cars, are they making any kinds of automobiles right now? the answer is no, they won't be making them until next year. so what's going to be in the results tonight? >> that's exactly our point. they're reporting results today that are no real revenues as of now. it's mostly been a business plan, an exciting business plan, so we think that the management should use the opportunity of

speaking win veth investors todo updating them on a lot of items of interest which could be eventually positive for the stock. we're talking about naming their customers. obviously they want to go into production they need to have three customers that will sign up for those zero mission vehicle trucks naming them would give a lot of credibility to their story with everything from hydrogen partners they also have a lot of credibility, and advantage pickup truck reported with a lot of reservation so giving a reservation number or manufacturing partner in the updates of how it's going so far could evaluate the potential story. >> you do feel like you're almost an early stage investment capital venture looking at the ideas and the path of

profitability. is it a little weird to you that this is a publicly traded company already? >> you're absolutely right, kelly. the reality is that this is almost a new world, right? spac are essentially happening earlier than it would. we have a rating that's a decent amount for the first car happening, building a factory and all that the trading we're offering here is a massive pullback, as you mentioned before i think we'll get some potential positive out of this, but yeah, there is a lot of risk and we will need validation from external customers to believe in the story. >> that's a good point we'll see if we get any of that tonight and in the meantime we'll see what investors do with the stock. emmanuel, thank you.

and a stock hitting an all-time high. it has nothing to do with covid, so we'll tell you about that there. continental resources stock lowering the stock is down about 3%, and the ceo will join us to discuss the outlook for the company and the industry hexcngonberry, the new ceo, "t ehae" after this.

welcome back let's get to sue herera for our cnbc update. sue? >> thank you very much, kelly. here's what's happening at this hour, everyone at least ten people are dead and hundreds injured after an enormous explosion in beirut caused extensive damage. according to a lebanese security official, that blast occurred in the port area where there are warehouses with highly explosive materials. you can go to cnbc.com for more on what is a developing story.

there are now more than a million customers without power from the strong winds and tornadoes associated with tropical storm isaias. the storm is continuing to travel up the east coast hitting new jersey the hardest with more than 325,000 customers impacted. virginia is a close second with nearly 300,000 impacted by this storm and losing power roger penske has reversed course the indy 500 will be held without spectators this month. penske, who bought it in january, initially said he would cancel if people couldn't come and watch. but with covid-19 spreading, he said we need to be smart about this kelly, back to you >> sue, thank you very much. let's get to today's quiet climber, shall we? it's a stock hitting all-time highs which may not be on the

investment radar it's xlrn. it's a pharmacy company that develops drugs for humanology and pulmonary diseases they recently partnered with bristol meyers and that has investors excited. the stock has no sell ratings on the street and it implies a 20% rally from here even after all the excitement it is a little on the small end, the market cap just over $6 billion, but it has nearly doubled year to date it's up 90%, basically tripled to 78% meanwhile, shares of continental resources are falling today after that company reported a bigger than expected loss in the second quarter they shut down 55% of oil production to deal with diminished demand due to the pandemic despite these headwinds, the company reiterated its guidance, so giving investors a picture

there. joining us to discuss, ceo bill berry. bill, welcome, and it's great to have you here. >> thanks, kelly, it's great to be here. >> what would you say is the diagnosis for the oil market today? >> i think what we're seeing is continuing dynamics with opec plus exercising some discipline. there is still a bit of a hangover from the inventories out there, and of course, coronavirus is downing the demand right now it's in the 40 range that's probably not sustainable long term, but it's probably where we are for a while >> so do you think in the long term, the sustainable price is higher >> absolutely. there's just -- at today's oil price, at a $40 oil price, that's not strong enough incentive to get production and growth that's needed for the world demands. so we're probably seeing long term something in the 50 to 60 range. >> sure, and i know that would make a big financial difference

for your company tell me about the production that you've restarted and what the next kind of thresholds are that you're looking at >> kelly, we probably lived through probably one of the most tempestuous kinds of things i've seen since i've been in this industry we've gone from talking about black swans to now we're talking about flocks of black swans, if you will if you look at what happened with the coronavirus, with the saudis in a price war, all these things have kind of driven us to a completely different market than we've seen before going forward, i think there is a discipline out there that will provide a little foundation for the price, and for our company, we brought all our oil production back on in august, so we're back up and running almost full tilt now. >> i know it's important you would try to avoid layoffs as well during this time.

i have one more question for you about the oil market overall, are we coming out of this, the u.s., having gained or lost market share to the rest of the world? we remember how difficult these fights were the last couple months about whether or not we were going to cut production >> yeah, clearly with the constrained capital that's being spent in this environment right now in the united states, the u.s. is going to be losing market share on a worldwide production basis >> if that's the case, is it just going to come back as the market recovers, or do you think this is a permanent loss >> no, i think it's just temporary. what we're seeing now with the reduction in capital spent, we're probably going to see a couple million barrels a day come out of the u.s. as oil prices come back up and stability is out there for supply and demand, you'll see companies start coming into a little bit more of a spend basis. but i don't think we'll see the growth we had in the past where some companies were looking at double-digit type growth, but we will see production come off a

low of 10 million. we'll be coming back after we reach that low >> do you think consolidation, which we haven't frankly seen that much of, is over for the sector, or should we expect to see a lot more of it >> i think you're seeing a little bit of evidence with some companies out there that consolidation is something that happens. there is always different activities going on in the oil industry, and as we see different changes with oil prices, that drives different change in behavior i think you'll probably see more consolidation in this industry it's probably needed in some way. >> yeah, especially given the new landscape you're describing. bill, thanks again for joining us, now at the helm of coo thank you for coming on. we appreciate it >> thank you for having me >> bill berry is coo of continental resources. phil schiller is taking on a

new role, schiller saying he started with apple when he was 27 this year i turn 60 and it's time for some planned changes in my life. kelly, back to you >> as the company approaches the 2 trilli$2 trillion valuation mk thank you, josh lipton there is an etf for everything from spac and the pandemic it's all ahead in "rapid fire." it's after this. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest.

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let's catch you up on a couple stories that should be on your radar today. it is time for "rapid fire." seema mody, rahel solomon and picker the clock is ticking in the senate to get a deal done in order to avoid a ban in the u.s. for tiktok the chinese state media is slamming the count slamming the u.s. as a rogue country for its planned smash and grab of tiktok >> it's prompted strong pushback and very strong rhetoric from the chinese, whether you look at wavo, the social media platform, and they said in response to what's happening with tiktok, china should take aim or revenge with apple so the narrative of how this plays out, the acquisition by

microsoft is being watched very carefully and it races an existential question, kelly. it raises lots of expectations on how this plays out. >> the u.s., the white house, the president has said one thing, but now there's a discussion about looking to do something about tiktok in the next couple days this was just stated at the white house. this story could change. by tomorrow we could be talking about a totally different outcome for tiktok, but its future here does not look that great absent u.s. ownership. >> it doesn't, and it's brought a panic to its owners, its users, kelly one commenter saying, then i really won't have a life if tiktok goes away tiktok is literally my life. i'm not on tiktok so i can't quite relate, but i think it's really interesting the reaction we're seeing from users of tiktok which is growing exponentially, it seems like, by the day.

>> it's popular, leslie, not just as a diversion but even politically, and there is a question of how this is factoring into the election coming up in 90 days >> i think that's the key question, especially among people watching this one are these motivations politically driven, are they security driven? there are arguments to make on both sides of this, but there are things to consider as we make this asset. >> did seems weeks after we close the chinese consulate in houston that the u.s. was lying out, now we're being accused of being the rogue actors i'm not comparing the future of tiktok to spying on an individual basis, but it does seem like the gloves are off, and it's basically each nation for its own. there is no precedent here its national interest comes first, period. >> and you could likely use this example of tiktok as yet another reason why you'll see this decoupling further play out

between the united states and china, and if that's the case, which country benefits from that, and will they seek it as an opportunity is another key question >> absolutely. we'll move on to another story of the day it's spac and we have miss picker for this one. many companies are going in offerings. they've raised a record $21 billion. but this nikola is basically giving us a business plan, and going spac is very expensive >> it's expensive and you may not get that typical ipo pop that you would see with a traditional ipo operating company. i think it's important for investors that are probably

hearing a lot of about spacs in the news right now and they're saying, how can i get on this bandwagon, maybe a diversified itf is the way to do this. one red flag for an etf here is this idea of a liquidity mismatch this idea that in a traditional spac, you have the right as an investor to redeem if you do not like the deal that is put forth. with an etf, i'm not exactly sure how those redemption rights would work you would probably be stuck even if you don't like that, so it may be a little safer, at least for the time being, if you're really interested in the spacs based to invest in other opportunities. >> also this comes at a time when even though ipos have performed relatively well, there hasn't been a ton of investor interest it just seems cool that this is the hot new kid on the block and everyone is pouring in >> the renaissance etf gaining

about $7 million in 2020 i think that's interesting maybe it's the shiny new toy of 2020 ipo certainly had a great year last year. this year not so much. and so spacs is the new thing that i feel like we talk about a lot, and who better to talk about it than leslie >> exactly, and quickly, seema, we have the sports one that's coming public in the next week or two, and so forth, but it is a good reminder that i wonder if -- it's a huge opportunity, people have been complaining for years we want earlier access to these companies, we can't get them until they're on the public market, they're too big, they don't have growth, it's too late this is the flip side of the coin here's the business plan give us your money >> yeah. and actually on that note, kelly, i would just point out a conversation i had with a wealth manager at a top investment bank said now he's starting to receive more inbound requests from his high net worth clients not just to get into that airbn

whenever that may happen but also get into spacs, and that may be why we're seeing these tools that help investors get that level of access that they possibly want. like you said it's the hot new kid on the block >> hedge funds, don't count them out of the game just yet they had an awful first quarter. very few of them launched. march performance was feared very bad, but it wasn't as bad as expected. morgan is expected to launch more hedge funds because they did very well in march i'm suspecting this class may be on its way out, but it's kind of a stalwart here. >> i think investors were looking for the potential of downside performance, especially fixed credit oriented assets they're looking to fixed hedge funds saying, there is a lot of

uncertainty out here here we could invest in hedge funds and preserve our capital i think the part of this story that isn't getting talked about enough is hedge funds weren't launching in the first quarter of the year because everyone was under lockdown if you were an investor, you weren't able to go to the offices and do due diligence and shake the hands of the manager you're handing over tens of millions of dollars to now while there's certainly still lockdowns and social distanci distancing, people are able to do that due diligence and have those conversations that are necessary. it looks like that isn't changing any time soon, so we're seeing that play out during the remainder of the year. >> don't count them out, they're still here hedge funds, that is we're talking bras and beat-up jeans because wells fargo just targeted limited brands to $35 a share, saying

they had strong quarterly sales. they're hoping to right-sizing, so to speak, the victoria secret business they tripled off of march lows rahel, i think this speaks to, with the slate of retail bankruptcies we've had, which brands are actually going to surprise us to the upside with some staying power with covid. >> i think bath and body works is such an interesting story their comps were up 10% even though their stores were closed for half a quarter it really resonated with the candles and the body washes and that sort of thing victoria's secret, they are expected to fall 40% it's a tale of two very different stories and analysts think the cost-cutting measures that out brands are taking with victoria's secret will make it attractive to a potential buyer

down the line. >> this is a story we all love from the journal today they're pointing out there is a huge kind of secondhand gray market on clothes on instagram, so people are paying what they say are vintage vendors, basically buying a bikeer jacket for $325 maybe they're trying to do more commerce, but these buyers feel like they're avoiding some of the fees and charges that come with the more legit platforms, and i wonder where this is all headed >> who is paying $325 for a distressed jean jacket i don't know, but i guess it's how important instagram is for all these retailers. if they can do a good job of crafting their message and strategy and taking aim at that audience, perhaps it works >> they're saying nobody has the kelly bluebook yet for carhardt pants. seema mody, rahel solomon

and leslie picker, thank you very much. if the pandemic has you thinking about retirement, the money you still would need to make it happen we have the new numbers ahead.

welcome back if you've been dreaming about and planning for retirement, there is a new study that shows just how much money you need now to make that dream a reality sharon epperson is here with the details. hi, sharon >> hi, kelly you should have about $2 million. that's how much 401(k) savers think they're going to need in order to retire. that's according to a new survey out today by charles schwab. they looked at 401(k) participants and asked how much they think they'll need. they said about $1.9 million on average, and that's 12% more than the 1.7 million they thought they would need when this survey was done a year ago.

what's changed during the pandemic savers are more engaged with their 401(k) plan, they may be going on line, using their mobile apps, but there is still a question as to when they could reach their goals. 37% think it's likely they'll reach their goals. 21% say they would have to retire later than planned, and 14% said they are not likely to reach their retirement goal at all, kelly >> the rules of thumb, sharon, like the 4% rule of how much you can withdraw, if that's only 3 or 3.5%, you need more it's not our fault that covid happened you may have thought you needed 1.9 and suddenly you need two and a quarter. i don't know how you make that up >> you definitely may need more than you think, and the fact remains that people need to be mindful of how much they can put in this year and try to max out. this year you can put in $19,500 into a 401(k). if you're 50 or older, you can

put in an extra 6500 with the cap solution, and that's what folks need to think about, if they have any extra resources, putting that money away. although some of the financial advisers i talked to is there might be too much thinking about goals and financial planning, especially with what people are going through today. yes, you might need to save more, but you might need to think about, what is important to you how has covid-19 changed what your values are, and in addition, what your future is going to look like there that will help you reach your retirement >> absolutely, and still a good reminder about those catch-up contributions. sharon, thank you very much. coming up, as august gets underway, the mortgage is due for thousands across the country. we're going to look at how many still can't pay and the ripple it could have across the industry join the cnbc play book of virtual summit with sheryl

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welcome back now that august mortgage payments are due, we're getting new numbers on how many homes are opting to delay their payment due to pandemic. >> reporter: the number of bar rowers in the mortgage bail out is shrinking slightly but with red flags. the bail out includes government and private sector relief for homeowners allowing them to delay monthly payments for up to a year 7.67% of all mortgages outstandings are in forbearance

now. that's down. that translates into 3.8 million homeowners according to mortgage bankers association. by loan type, the numbers are dropping for loans backed by fannie may and freddy mac. fha is a lower down payment option for borrowers with lower credit scores. these are riskier to begin with. another red flag, more than half of all loans in forbearance are extensions from that initial three months that share is growing meaning more of those in the bail out now are unable to get back to making their monthly payments. kelly. >> when does the forbearance run out? >> reporter: you can go for up to a year. you can keep renewing. at some point they will have to

go into modify kags or have to be extended. they don't have to make these payments up until the loan is either refinanced or until they sell the house again, seeing that large share of people who are having to extend that forbearance program is not great >> fact it's half tells you what it's like out there. home prices jumped nearly 5% year on year in june according to corelogic that was thanks to record low mortgage rates and demand for people to move to the suburbs. my next guest says low rates have brought about the highest level of home affordability with nearly four years. andy, it's good to have you back very ruster setting today which i appreciate where is housing affordability at record highs. >> as you mentioned, the highest

affordability rate when you take incomes, interest rates and home prices in three and a half years dating back to 2016, when you start to look across the country, it gets spotty and sporadic areas that have seen incomes keep up with home prices and seen more moderate prices in recent years are seeing the highest levels of affordability in 5, 10, and in some cases 25 years. other areas as little as two years. >> we're showing a map that shows arkansas, louisiana, west virginia, kentucky, m.aryland, io iowa is it only happening because of the dismal economic situation? >> that's that big question housing is the most affordable when no one can afford it. there is some offset and head winds driven by the elevated unemployment rates out there in the market as well for those homeowners that are still fully employed that are able to shop in the market, you have about 10% more buying

power. >> how much of that is being translated into higher home prices the lower mortgage rate will do is mean that more people can access housing, push the prices up and you kind of come out with no difference at the end sflp that's the big question if you look a it dollar per dollar, you're savoring about $65. that's not typically what happens. interest rates have fallen, house price growth has increased. the good thing, somewhat, about this time is we do have that elevated unaffordability level you have some head winds there to home prices as well we may not see the home price growth that you otherwise would have seen. >> that's an interesting point my final question here because no one wants to see prices start to lift off like we did 10 and 15 years ago you're not seeing that >> so far what we have seen from march through june is kind of deceleration in home price

growth we have seen rates fall further. it's local and geographic. >> thanks. you always bring us a lot of great stats. wee apprecia we appreciate it that does it for us on the exchange today ahead, it's tilman tuesday the restaurant and casino owner joins us with his new outlook on when the economy will really recover and it's not so soon i'll see you on "power lunch" after this quick break

good afternoon welcome back green numbers. nasdaq record high before turning lower. the right now the major averages are holding onto modse esmodest. a stimulus stalemate over the next round of funding to help the economy and individuals. ford higher after ceo says he will step down as ceo that as his turn around plan has stalled out. we have a special report on the man who will take his place. later, it's tilman tuesday he says it might be years before his business is back to normal he will tell us how he's planning for a much longer road to recovery. p "power lunch" starts right now. thanks we have a couple of big movers today. microsoft the worst performe