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trying to climb back more convincing is the move in the homebuilders we have them up 3% to 4% and d.r. horton. home, plus shipping and railroad companies are down again today and having a terrible week. what do these freight fears teul about the economy that's still ahead on "power lunch. >>> welcome back to "power lunch," existing home sales fell for the lowest month in april while prices don't show any signs of coming down diana olick has the details. diana? >> both higher mortgage and sales are taking their toll on existing home sales which were down 2%, down 6% from a year ago and the slowest pace since june of 2020 and that month was artificially low because it was at the start of the pandemic before sales suddenly took off the supply of listings continues to weigh on the market down 10% from a year ago, but rising interest rates also now factors in these sales numbers represent closings so signed contracts in february and march when rates were rising, the average rate on the 30-year fixed mortgage started at 3.66% ended in march to 4.78 and it is hovering around 5.45 which is why the ch

lgi was down 4%, d.r. horton down 7%.rs have fallen in 16 of the last 18 tightening cycles who can weather the storm? ken has been warning us about the effect of tightening cycles. are you feeling like you're anywhere closer to the sector being a buy here >> no. in short, our wall of worry thesis, as you noted, 16 of the last 18 cycles back to 1969, the stocks did fall 30%. that did not include a recession. as niall highlighted, we are ask youing towards trends that we saw in the first half of the '70s, not the second half of the '70s and it's not priced into the stocks yet because they don't bottom until the end of the credit tightening cycle. >> we are, wouldn't you say, about 30 manual count off the highs? how much further is there to drop for the builders? >> well, more is obviously our baseline assumption, because i think the recession and really stagflation is really starting to come in we did downgrade some product names last week. we're seeing low to no volume, rising prices, which is really a function of price de