carnal, the extraordinary story of colonel tom parker and elvis presley on this episode of booknotes+. booknotes+ is available on the c-span now free mobile app or if you get your podcasts. >> listening to programs on c-span3 c-span radio just got easier. tell your smart speaker play c-span radio and listen to "washington journal" daily at 7 a.m. eastern, important congressional hearings and other public affairs events throughout the day and weekdays at 5 p.m. and 9 p.m. eastern. catch washington today for a fast pace report on the stories of the day. listen to c-span anytime. just tell your smart speaker play c-span radio. c-span, powered by cable. >> host: we are joined this morning by diana olick who is cnbc housing reporter, real estate reporter. talk about housing prices and diana olick, where do the right

stand right now? they are changing every day or what is going on? >> guest: mortgage rates are interesting. they don't move like stocks exactly did a bit but you can get an average. we have a guy once and for us that we have seen this will a remarkable move higher since january. january we saw the average rate on the 30ar year fixed at 3%, nr a record low. starting to rise, really came up in march and. may. in june it went over 6%. that is double obviously and really put a hammer on affordability. came down a a little bit in jy and august. in the past week shot up over 6% again, 6.25, hovering and the range. again mortgage rates arees arranged in an average but again it is double what we saw at the start of this year. >> host: why didk it shoot back up again? >> guest: a lot of people say the p fed rate mortgage rate wet up. doesn't work exactly that way. i will not bore anyone with the

details about mortgage rates work really rates follow the yield onn the ten-year treasury and that yield reacts to our investors deal about the overall economy and so when the fed says okay we're going to get more aggressive, continue to raise interest rates for the general population andn, that's going to hurt consumers, i don't know if you heard the fed chairman say that in his last speech, he said it mayns hurt consumers of it. and may hurt the economy but we need to pull back inflation and the markets reacted too that end yields went up and the bond market is a mortgage rates follow that. >> host: and he said yesterday the federal reserve chair that the fed is going to continue raising rates until the job is done. >> guest: and i was a signal to the market that is going to get a little bit uglier for consumers out there and that meant that again and the bond market investors were selling off some bonds when yields go up, when bonds gets old and in the rates follow that. >> host: he also said he's

doing this or the want to do this because they do not want high prices to become the norm in the american conscience. doesn't that bode well for housing? >> guest: it's kind of a double-edge sword of winces mortgage rates are up in housing demand has pulled back at home sales have started to fall and home prices have very recently we've - seen the first data that home prices are starting to fall. that's not a terrible thing because this housing market was completely on fire over the last two and half years, since the start of thehe pandemic. .. -- just since the start of the pandemic. first-time time buyers fell out of the market. low income borrowers cannot get into the market. housing has become unaffordable. we really did need to bring it back. >> guest: yes, higher mortgage rates are slowly failing and this correction may put a bit more healthhe into the housing market. >> host: where are prices falling the fastest?

>> guest: in the markets that went highest the fade patternsest like san francisco, seattle, la. you've not seen prices drop in the south, which is where really we saw that pandemic migration into miami et cetera. prices are very strong there because command is strong and supply is low. but supply is low across the country and prices are coming down ag little bit. when i say they come down, we're talking less than 1% from june to july. that was our first data point from black night that reported it. that was the first monthly drop in almost three years and it was the largest monthly drop from june till july because housing prices almost always go up from june to july and the dynamic of the market p in over a decade. that was kind of a big red flag something was going on nationally and certain markets seeing no price drops. they'll see prices continue to go up and still way up from a year ago and that was just that one month drop but then there are going to be markets that

were m really, really overheated where prices come down a little. >> host: i want to invite our viewers to join in at this point because i'm curious what the w market is like where you live and tell us that and if you're buying a house, we want to sell a house, we want to hear what it's like where you live. independents, republicans, democrats. dial in. diana olick and i will get to the calls in just a minute. what are you watching now then in these coming weeks? what are some indicators and what will they tell you? >> guest: i think prices and supply, those are the most important indicators for the housing market because they play off each other. home builders really pulled back and that was not a they saw demand pull back in june and fewer drug and intoxicants being signed and they slowed construction and that's the opposite of what wehe need right now. we need more holmes because despite some of the demand

pulling back, there's a very large housing deficit. all kinds of mysteries from $1 to $5 million deficit in the homes. the prices will be nothing like the great recession when home prices plummeted nationwide and people went underwater on their mortgages and a massive amount of foreclosures. not going to happen. people have tons of home equity and gained trillions collectively in home equity over the last two years and even if prices fell, 5% on every home nationally, you'd see less than 1% of borrowers be underwater on their mortgages. >> host: where are there home deficits in the market? >> guest: everywhere. during the boom, there's nothing for sale and i don't know if

you've gotten letters in the mail like i'd be happy to sell your home and get you top dollar and all cash. you know, it's happening in markets all over the country. there's really not -- i haven't heard of maybe in the midwest a little bit when you look at ohio, illinois, those are some marketeds that don't have quite the deficit of houses but really everywhere we just need more holmes because we have more demand from the millennials and largest generation and buying homes later in life because of the boom and recession. they have savings and may be pulling back because they got concerned over higher mortgages and higher prices and a lot have the ability to buy and could step back in if they feel it's the time. >> host: what move do investors play in the market leading up to now? i'm talking about wall street chasing money and buying up homes? >> guest: yeah, there'sev several large firms and you tend

to see these articles and wall street bought up these entry level low-priced homes and buyers can't get in and wall street bought them all up and caused prices to go sky high and wall street has not a lot of homes but less than 2% of the market. there are a lot of investors and homes that have been turned into rentals and rent the market is just exploding. there's a lot of rental demand for people that can't afford to buy and they want single family homes in the suburb with good schools and et cetera. they build that entire family rental and that's a hot market right now. >> host: are the builders building the right kind of home? >> guest: depends what you mean by the right kind of homes. condos are not really building

homes in the south and west where they have the most land. they're doing a lot more of the rental because they're seeing very strong demand and these are full communities having amenities where you have your lawn cut for you, you don't have to worry about any of the maintenance and worry if something happens to the housebecause you're a renter ane a three-bedroom house and a nice neighborhood and a cul-de-sac and nice way to get. >> host: building to rent because there's more ways to build in the south? >> guest: they're getting good returns and you're partnering with builders and american homes for rent and it's a large single family rental. didn't used too be a constructin company. now they're starting to build. >> host: interesting stuff. all right, dianne in california, what's your question?

>> yeah, i would suggest to really address the investors and not being able to compete with the investors purchasing homes. here in the los angeles area, and i have a property that i'm the administrator of, and i get calls constantly from investors just out of not -- well, just out of trying to keep americans -- being able to purchase homes that single families are not interested in them calling and are not interest in selling to them. it's been down played and no one ever wants to mention it. a young attorney and his wife who was trying to just make a

house, they couldn't afford to buy, the cheapest they could find in a decent area was like $4,000 a month. this area, i know that area, i went to school in that area. it's not a great area. $4,000 a month. this is the reality of where we are near los angeles. so i hope -- diane, i'm going to have diana olick jump in. >> guest:th yeah, there's certain markets and you're talking about los angeles, it's a very competitive, expensive housing market. there's investors there and investors in the area like charlotte, very heavy in the southern areas with a lot of demand right now. there is competition, especially for those lower-priced homes but people aren't talking about it. i think that rent everywhere is skyrocketing. if you look across the nation, rents are up over 10% on single family homes from a year ago. apartments really shot up,

especially in major cities and especially in the sun belt where, again, you see all that demand. so it's not so much, yes, investors are fueling the market, they're buying these homes but the rental market is so expensive because there is so much i demand and so little supply. that's the dynamic of the market. if the investors who own the property couldn't get the rent, they'd lower it and it's supply and demand and that's how it works in the market. >> is inflation a factor of raising rents? >> guest: absolutely. turn that around and look at ayo place like new york and seeing in new york city, some of the rents moderating a little bit because overall inflation in the economy has made it so that renters can't simply afford the higher rents when the leeanne lords see that, they don't have the -- landlords see that, they don't have the pricing power and they'll slam the brakes on it and so much demand and so little supply and if that's the dynamic of the market, prices will go up for rent.nt >> host: paul, in germantown,ma maryland, democratic caller.

>> am i on? >> host: yes, you are. >> thanks for taking me call. you know, the problem we see in the housing market now -- and i'm a builder but i build smaller homes, >> and i see a lot of other builders building massive, massive homes and you build it so big it's going to cost a lot. i had a question about your guest about up zoning and how it might affect the housing prices and get more houses on smaller lots and so forth. that's not even the question. >> not sure builders are building larger houses and look at data of the larger house size and they want to see smaller more environmentally friendly efficient homes and maybe some of that you're seeing in a larger home in some places because of the news work from home and the fear after the pandemic that we might be stuck in our holmes again at this point if everyone wants to have

enough space and the outdoor building that right now that people building out and have adus on their property that's building tiny homes behind their houses. so there's -- i would say that depends on the market you're in. up building in density. density is a real controversial issue because while i cover real estate,il i also cover climate. there's a a great argument out there to say that if we have, you know, a housing deficit and we need more people in the cities or in certain areas that are very in great demand, you want to build more density. you want to allow to have more high-rise apartment or put houses closer together and it just allows for more people to live closer together and there's less commuting and more jobs closer and takes, you know, some of that carbon footprint out of the housing market, not a lot. it's happening in my neighborhood here in washington and big argument over building high-rises on connecticut avenue, there's a big thorough thorofareand off connecticut avd

where are people going to park and more affordable housing and focusing on climate and how we structure our cities and we need more density. >> host: interesting you have that combined title and i was going to ask you about it. what's the thinking there and are you always coming from that lens of climate? >> guest: i do now, actually. it's interesting because it was, i guess, about four years ago i launched a series called rising risks from msnbc and looked at risks specifically and there's an overlap and real estate counts for 40% of global greenhouse gas emissions and that's the construction of real estate and operational of buildings and the destruction of real estate when you're changing out housing and rebuilding and taking buildings down. we focus on climate and

thankfully we're really starting to see progress until we broadened our climate and so much of it overlaps with real estate and there's soso much gog on in cities and it looks at all the startups in the climateth space that are looking to electrify buildings and looking to change how we do urban planning and again a lot of that is happening in the washington post and within decades. >> host: yeah, tens of thousands of decades and if the homes are lost into the sea, other ramifications, i'll call it ramifications: property taxes. >> guest: absolutely. what's really amazing is people continue to move into the areas that are most at risk. most at risk of fire, flooding, that's where everybodiments to live. on the coast, in the beautiful areas,s, and it's just alarming

because, you know, i did one story about how the government is funding the rebuilding of all these disasters and really what they need to do is stop funding the rebuilding and start funding the moving away that migration that we call climate migration away from the riskiest area and they may be the most beautiful areas and go visit for the day and don't put a house on the edge of the ocean or in california in a fire zone where we're just going to have to clean it up and it's a danger to everyone. it's just the billions of dollars being spent in the economy because of these climate disasters and it's rising every year we see yet another record level of how much that disasterv relief is costing so again, i think you need to see more climate migration, that we're seeing in somere areas, especiay in mississippi, louisiana from some of the river areas baa really you're not seeing that move away from the coast that

we're going to be forced to do very soon. >> host: 252050 -- 2050 is the year mentioned in the washington post. josh, georgetown, democratic carol. >> yeah, a couple things. in georgetown where i live, they arey building entire housing communities unsold. with expectations they will sell, georgetown is a suburb of austin and everybody from tesla, facebook, you know, they're all moving in here so there's a lot of need for housing. so they're not even waiting for outhe houses -- i inherited a he

last year in washington dc. i inherited a home in washington dc five blocks from howard university and i was going to have the house renovated and use a rental property for a housing -- for just yaws a rental property and investment property and things happen and a distance weighing in with the ability toit keep up with it. and the prospect areas and people trying to move and, you know, it's for sale now, it was put up on the first of september. i anticipate this house, which i grandfather bought in 1955 for $17,000. it's listed as $645 and needs to

be gutted front to back, top to bottom and house next door sold for $930 in june. i'm looking forward to that selling and i guess the dc area is totally different area. you can't go out and buy five acres and build like you can in texas. >> guest: right. i'm guessing that house in the howard university area is going to sell really fast even if it does need to be gutted top to bottom because that's a very hot area in dc so good luck with that. i want to address, i was talking about the austin area and i was in austin last week talking about a massive community and 7,000 houses being built and on a geothermal grid and the whole climate and real estate convergence. i'm surprise when had you say none of the houses are sold. i would check that because when we was there, it was sold out and there were contracts on

homes that had not been built and the demand was so large and right next is the tesla gig factory, which i've never seen a building that large in my life. wewe drove past it and kept driving and driving and driving and it kept going and thousands and thousands of workers all over the country, especially from california and housing demand in austin and massive communities the speck homes sitting and not selling, they will sell. the demand is that strong and the supply in the scenario is jumping so dramatically and all realize is local and house in dc will sell in a nano second and i believe the houses outside of austin will be well as well. > host: what's the gp of a geothermal grid? >> guest: this is so cool. they built a grid before any of

the, homes were built and in ten years, more than 7,000 single family and multifamily homes so a massive community and what the grid does is uses this temperature of the water underground and it's always stable. if you dig 30 feet underground, there's basically 72 degrees and by drilling down into that and pumping water into it, you pull that temperature up and then you circulate it through a piping and every single home has a drill spot in front of it where even the plats that haven't been built on have a hole in front of it where the piping goes that's been built to pull the water up into the home so it both heats it and cools it. you do need electricity to pump that up but every house also has solar so you're heating bills llare not good enough and we hae the bills in the club in the house and looks like hot water heater or something and it's very small and it cuts back and

a way for people to cool their homes and it's horrible and the people without water and this community will not be affected and the electricity to run that water up the power going to run it with energy and had tesla battery backups and going more off the grid and down the line. >> host: glendale, arizona, republican. >> yeah, i've been listening to the program and i'm not being addressed at all and we got to

our country was wonderful and they needed to have it and also the daily people that are crossing the border are probably not into 2 million if not 4 million people in the last couple years and crossed over and they are obviously trying to find some place to live. and all of this she keeps talking about supply and demand and drilling down. >> host: migration contributing to the housing shortage and i'm not an expert in the area and i would say that that would be looking for low-income affordable housing multifamily buying homes and don't have the income to do that. we have a very, very gross shortage of affordable housing g and affordable multifamily

housing and if you talk toho builders about it, they say it's really hard, you can't pencil that and they mean that the cost for the builders now are so high because of inflation because of supply chain issues, because of labor issues, land labor materials. they what they keep saying and inflation cost and steel, lumber, et cetera, are off the charts and they need to charge a certain rent to pay back what they took out to build the building et cetera. they can't do itld on the affordable level and now need the government grants and hud to commodity in and fund that and we are seeing more of that. >> host: what about the ready made houses and the tiny homes?

>> guest: tiny homes are kind of a fad. and there's different places with different zoning laws on that and some of those should be used to solve the problem and you're seeing more construction of prefabbed homes and that is homes built in factories and even sort of garden apartments being built in factories and that part of the climate issue because it's much, much more climate friendly to build in a factory and then take that full apartment building whatever the mobile unit takes them, piece them together on the property and do that. you're seeing some of that but not nearly enough and the first company building large scale and that's 10 to 30 story apartment buildings in a33 factory in unit that they live in. bring to the site and clip together andog again, you need

investors and novice torrs behind them and it's not there yet. we need so much more affordable housing.ho ing.>> host: janice in colorado, democratic caller. janice, are you there? democratic caller? one last call for janice. all right. diana, tell us, you mentioned this at the top, just go through it again for what should people be watching for in the weeks and months to come, especially if they're thinking about buying or selling a home? >> guest: watch mortgage rates, what's happening in the mortgage market and, you know, if you see an rate that an average sale over 6%, i can't do that. not everybody. it's an average. talk to lender and the kind ofyo opportunities there are. bank ofa america direct it had t low-income neighborhoods and offering no down payment loans and granting you the down

payment and no mortgage insurance required and have anan income and can pay back the mortgage and borrowers can comer in and see wells fargo and have all kinds of low down payment programs and what i would watchu as home prices, you don't want to get in at the top of the market. you don't want to start house rightfor a now. bidding wars were rampant during the pandemic and saw the lines of people outside of house and 40, 50 deep all masks and waiting to do in. unless you're -- it's not necessary in today's housing market. it's not such a seller's market as it used to be. seller haves to bring their sights down a little bit and see how the market has changed because again, when you go from a 3% mortgage rate to 6% mortgage rate just as an example, on a $400,000 home,

your monthly payment is now $700 more per month than it would have been just at the start of this year. >> host: find diana olick go to cnbc, watch her reporting there and go to cnbc.com and diana olick was talking about two series, fresh start and rising risk. >> guest: rising risk and clean start. >> host: clean start. thank you very much for talking to our viewers. >> on capitol hill, the senate returns later today at 3:00 p.m. eastern. senators will spend most of the week voting on president biden's judicial nominations on the appeals court and house back from the summer recess at 2:00 p.m. eastern. lawmakers are expected to pay tribute to the late queen elizabeth ii and vote on a resolution honoring the longest serving british monarch and two representing new york state and one from alaska replacing the late long-time congressman don young. later in the week the house

votes on legislation changing u.s. census bureau operation and watch live coverage of the house on c span. the senate on c span 2. watch on our free video app, cpan now or online at cspan.org.

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>> coming up, insurance policy specialists testify before the banking committee. the committee raises questions about the impact of private equity companies on the retirement asset industry.