for "nightly business report," i'm diana olick in washington. >> the housing market is one sector of the economy the federal reserve is watching closely and today an official said the central bank's key interest rate should be raised in june. federal reserve bank of richmond president jeffrey lacquer points to stronger job market consumer spending growth and inflation heading back towards the fed's target. he said unless inc economic reports are very weak the case to hike rates in june are strong. >>> the federal reserve will be paying close attention to the march employment report due out this friday. despite the fact that the markets are closed for good friday. but as steve liesman reports, are economists too upbeat about the market and could that set the market up for a big disappointment? >> reporte hopes are high on wall street for another good jobs report from main street but main street talking and is wall street not listening? growth in the first quarter slows to a crawl with lackluster consumer spending corporate profits flat lined and home building anemic. not to mention th

diana olick takes a look. >> reporter: there i real black stone doesn't touch. landmark offices, apartment buildings, single family rental homes, medical buildings, student housing, hotels. $81 billion worth of investor capital under management. now as part of ge's health cleaning blackstone adds $14 billion more. >> in this market environment, it's very difficult to place a lot of money all at once and given the amount of money that someone like blackstone is clearly looking to put to work in the market it would be very difficult to cobble together a portfolio of that magnitude one or two properties at a time. >> reporter: about $3 billion in office properties in chicago, southern california and seattle as well as billions more in commercial property than mortgages across europe australia, and mexico. >> they must have a relatively bullish outlook on the sector overall, otherwise we wouldn't be talking about the kind of dollar volumes they're clearly talking about in this case. >> blackstone has been in the news most recently in its hotel maneuvering after its

diana olick has our story tonight. >> reporter: more apartments are going up but so too are rents. >> it's gone up every time we get a lease renewal. >> reporter: rent growth at the beginning of this year was the highest in nearly four years according to axiom metric. why don't more renters buy? >> can't take on that financial burden. >> reporter: if you take the costs from home buying taxes, renovations and compare to the cost of renting, zillow figures it takes just two years for a buyer to be paying the same or less thapn a renter. the numbers vary market to market. it takes less time in dallas and the midwest, more time in california and new york. still, nearly half of renters surveyed said either their credit or finances keep them from buying a home. >> i would say credit. >> i just don't have enough to qualify. >> reporter: cre scores required to get a mortgage today are far higher than they were even before g boom. researchers at the urban institute claim that kept 4 million borrowers from the year before following the housing crash when bad loans cost the banks billions. >> le

diana olick has our story. >> let me see. >> reporter: shia got a lead on the perfect for their growing family but in today's tight market they had to move fast. >> i knew that if this house were on the marki would never get it. i bought it before going on the market. >> reporter: they bought the maryland home from charlotte based movement mortgage a non--bank lender that promises to close loans in just a week. >> the fact it went quickly, we didn't have to stress about it, worry about it really helped. >> reporter: customer service and more aggressive rates are giving non-bank lenders the edge. their share of the market more than doubling in the past four years. names like quicken, penny mack. picking up what big banks are leaving. >> shadow of the bank of america headquarters building and number one purchase share by offering great service to the homeowner. >> reporter: crawford admits to poaching talent from big banks and said it was pretty easy. >> they have not allocated the resources to make their service competitive and yet have given a lot of opportunity to smaller guys like our

cnbc's diana olick reports. >> reporter: shia and yahuda got a lead fon the perfect house, but they hadmove fast. >> i knew if this house went on the market there was no way i would ever get it. i bought it before it went on the market. >> reporter: they bought the maryland home with a loan from charlotte based movement mortgage, a nonbank lender that promises to close loans in just a week. >> the fact that it went quickly so we didn't have to stress about it and worry about it really helped. >> reporter: customer service and more aggressive rates are giving nonbank lenders the edge. their share of the market more than doubling. name likes quicken, loan depot, and movement mortgage are picking up what the big banks are leaving. >> our building sits in the shadow of a bank of america haur headquarter building. we've been able to offer great service to the homeowner. >> reporter: crawford admits to poaching talent from some of the big banks and he says it was pretty easy. >> they have not allocated the resources to make their service competitive. they have given a lot of opportunity to sm

diana olick is live on the streets of d.c. with more.rning. >> reporter: good morning, simon. i often stand in front of random houses to give my housing reports about the market in general. today, i want to talk about this house in a really coveted, expensive d.c. neighborhood with great schools. it's been on the market since the end of february. even though inventory in this neighborhood is down 24% from a year ago and demand is very strong. it has been fully renovated, pristine inside. owned by a builder, in fact who is flipping it. so the question, why isn't it selling? the realtor said it was priced too high at $1.45 million. the bigger problem may be this. pretty much every potential buyer has the ability to find out every last detail about every house, every comp every block of every neighborhood and most buyers are suspicious and just trusting given everything we've seen in the housing market over the last decade. a house today is likely to go stale faster nn the past. that has a big consequence. >> if a house doesn't sell the fir

diana olick has the ceo of prologis in a cnbc exclusive. diana?, what this does is makes prologis a whole lot bigger. it gives them a wider footprint in major u.s. cities like dallas, in southern california in chicago, new jersey and right here in seattle. and joining us in a cnbc exclusive, hammond mogodon thank you so much for being here. what v what was it that said to you this is the right time and frame to take on seven a large portfolio. >> diana, we've been in a period of about three or four years that industrial rents have been recovering. that's been primarily because of limited supply coming on the market while demand has been pretty strong. we see rents going up and see the higher rents working its way through portfolios. the problem is there aren't that many high-quality portfolios for us to buy, and everything we look at we need to dispose of a significant part to fit, but this was an exception. perfect match for our holdings and one of the few deals that you just have to make. >> interesting you say that. your major customers, places

diana olick has our >> reporter: before the dumpster comes in or the dry wall goes up the mouth designs the house. steven steven gately went online at the design build firm. >> give them an idea what you liked, disliked and it made that design process, it gave the designers a sense of who we are and what we're looking for in terms of the new space. >> reporter: g on to house, a web site that's grown into a remodelling marketplace valued at over $2 billion. >> i think that the fact that the vendors were there, the homeowners ready to do that and they really wanted the house to become the place where they do everything. >> i view it as an added cost of doing business. >> reporte remodelling web sites not just a destination for homeowners but necessity for remodelling professionals. >> most of us got into this because we love the smell of sawdust, passion about homes and now we have to be experts in social media and all these other platforms. >> r t competition is growing fast. take for example seattle-based porch.com, a company that connects homeowners with home improvement professionals.

diana olick explains. >>> only sales are finally surging but at a heavy price. the median sale price of a single family home in march jumped nearly 9%, according to the realtors that is more than twice the gains of a year ago. >> i think people are a little surprised when they first start the process. they are thinking the market is what it was, say, four or five years ago at the bottom. and they are surprised to see what the prices are. >> prices are being driven by very short supply of both existing and newly built homes. surge of 2 million homes for sale representing just over a four month supply six months is considered a healthy market. >> the number of listings is really not sufficient to the number of buyers that are out there. >> prices are also being juiced by more low down payment options. the fha, the government ensurer of home loans lowered the premiums at the beginning of the year and fannie mae and freddie mac launched new loan products g 3% down. as of last month freddie mac allows the down payment to be gifted. in other words, no homeowner skim i

diana olick reports. >> it looks like an easy sell.newly renovated on a corner lot in a highly sought-after washington, d.c. neighborhood. >> they said it was -- they said don't worry about it. this will sit. -- sell. but it has been sitting. >> it has been on the market since late february. even with supply down 24% from a year ago and demand very strong. this house is now what realtors call stale. that is unsold for more than 30 days. and in fact nearly three quarters of the homes listed today nationally are stale. that is according to real estate brokerage red fin. in some markets like charlotte, it is far worse. 95% of the market is stale. >> if the house doesn't sell in the first few weeks, sometimes it doesn't sell in the first few months and it sits on the market and that means that the inventory crisis that everyone is talking about is actually much worse than people realize because there is a small segment of real estate that people are actually willing to buy. >> but homes are actually going stale faster than ever today. why?

back to you. >> diana olick in washington. >>> facebook shares up slightly after revenue did fall shortriencing its slowest growth in eight quarters battling rising costs. how can the company turn things around? joining us colin sebastian from robbed w. baird. stocks not showing acute concerns about expenses. how concerned are you? >> expenses are part of the fabric for facebook currently. they are investing in near term intermediate term and long term growth initiatives, putting user experience first. that's part of the strategy. i think investors understand that. quite frankly, the concerns on the stock are more related to currency and high expectations on the revenue side going into the quarter. >> how did the impact of the dollar surprise you either way? >> i think it was magnified a bit. especially towards the end of the quarter. that's part of the story, for sure. there is an element to the other side is advertisers in europe spend less money perhaps than we expected. peeling back the onion, the core advertising revenues beat the street's expectations. in terms of looking ahead, i

have to have a lot of imagination when we look at properties and see beyond what it t was nbc's diana olickolice encounter caught on camera. but it wasn't the officer's cruising camera recording. >> plain and simple i'm going to break your leg before you get a chance -- >> the controversy surrounding this traffic stop and why one group is calling for the justice department to get involved. >>> no umbrellas today, just sunglasses, if is tomorrow and much of the rest of the week you'll need your raingear. right now 60 at 11:41. your seven-day forecast and a look at how much rain to expect when we come back. >>> a branch of america's largest muslim advocacy wants help from u.s. department of justice. it wants the feds to investigate a video of a minneapolis police stop. the teen who recorded video of the incident says he was racially profiled by the officers. here is nbc's report. >> reporter: sometimes cell phones capture us at our best. and sometimes our worst. the teen using this phone said he recorded a minneapolis police officer arresting and threatening his friend. it was march 18th. >>

. >> here who did a mini blowaway, lumber diana olick lumber liquidators.d outperform with 96-dollar price on stock. it was $96 stock before the "60 minutes" did a very negative piece. is it time to buy beaten down lumber liquidators. >> absolutely if you love volatility and long and short absolutely. there is too much trade in the stock. too many unanswered questions. a lot of people on both sides. liz: this stock was the 6 until report came out some of its late minute nates came out, laminates. we're still waiting for tests. would you take a chance? >> absolutely not. there are basically two quick answer that i share. first answer is absolutely not. there is too much opportunity in this amazing market to graham bell with lumber liquidators. why do that? if number two, if you want to play lumber liquidators, my only way to do it, spend a little bit of money and buy way out of the money calls. in case it goes up to 60 or 70, you make a lot of return. liz: michael, gave us an idea, where do you stand on ll? >> first of all, still trading 15 times earnings. s

diana olick joins us with some new ways to finance that new home. >> well consumers are finding it slightlytgage these days with lenders now having clearer guidelines from federal regulators regarding which loans could be subject to buyback if they go bad. so they're opening up the credit box yet again. that is giving way to new loan products and new ways to use existing loan products. for example, wells fargo, the nation's largest lender is offering jumbo loan borrowers for a pay to bundle their payments. ordinarily it just short rns theens the term. florida based ever bank is pushing home equity loans to buy homes just as second liens. these homes are usually used for home remodels or to pay for college but ever bank is promoting them as not only a way of buying home but then having additional cash to pull out when you need it. no more second loans. finally, equity key in california is offering a way for homeowners to sell the future appreciation of your homes. it is kind of like a mortgage but without the debt. equity key will pay homeowners cash now for a future share of the increase in

let's get to diana olick with more data. >> home builders may be happy about the potential for long-terms but housing today is not so much about the rate as it is about the ability to get a home loan. we have some striking new numbers to show you just how tight the credit box has been. forget any comparisons to the housing boom when credit was available to basically anyone with a pulse. instead, take the four years from 2009 to 2013, and compare them to 2001 which was a relatively cautious lending cycle. using the same standards as 2001, four million fewer loans would have qualified between 2009 and 2013. that's according to researchers at the urban institute. four million. and that's just a bit less than the total number of homes that sell in a whole year. average scores needed to get a loan today are still far higher than they were in 2001. less than 40% of today's borrowers have fico scores below 720. in 2001, more than half of borrowers had scores below 720. all loans now need to be fully documented, which makes things harder for small business owners or those who are self-employed.

diana olick. once again, we are watching the markets to rally today. technology is a strandout. check out the nasdaq 100 heat map. this of course ahead of a big week for tech earnings. tonight, ibm after the bell and an exclusive with the ceo of lionsgate. >>> "closing bell" starts right now. >>> welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'll show the wires. i couldn't hear a word what kelly said. she was going to say she's at the new york stock exchange. i'm bill griffith. i'm at global headquarters because you'll see me later on pbs. the stock market is down sharply on friday. the finishing down 279 points on the dow and friday because of concerns about greece and defaulting on debt and so forth. it is up 200 plus points because being cheered on by the reserve requirements in china. this is an internationally lyly oriented market right now. is that the idea? >> i apologize if i'm repeating anything. bill pointed out the dow is up 217. let's skip straight ahead to the "closing bell" exchange and introduce our guests. joining us

diana olick has a look at what stale homes are doing to the housing market. diana? it even tighter than we think. we know listings are way down but not every house is the same of course. take, for example, this one. it's been on the market since late february even though inventory in this desirable, pricey d.c. neighborhood is down 24% from a year ago, and demand is very strong. now, it's been fully renovated, enlarged, pristine inside, owned by a builder who's actually flipping it so why isn't it selling? well, the realtor says it was priced ambitiously, at $1.45 million. they've just lowered the price, still, the home is what realtors now call stale. nearly three quarters, actually of the homes for sale today could be characterized as stale, on the market for more than a month, according to real estate brokage red pin. in some markets like charlotte, north carolina it's even worse. 95% of the market stale. but does a house really need to sell in 30 days? well historically no. but today, yes, because of this. umpteen apps that tell every potential buyer out there e