diana olick has more from washington. >> reporter: bargain hunters jumped right in. interest rates have actually been falling lately and last week dropped even more. the average 30-year fixed came down to 4.14%. as a reference point, rates jumped from 3.77% to 4.16% in the two weeks following the election last november. the drop last week caused a big rush from potential buyers. those mortgage applications jumped 10% for the week. refinanciers are far more rate sensitive and rates were lower for last year. a big jump in borrowers who want adjustable rate loans. this is a sign that borrowers are really trying to use every tool available to afford today's pricey homes. one caveat, these a.r.m. loans are not the super risky, no-documentation loans of the past. a.r.m.'s are strictly underwritten today, but they are still more risky than a 30-year fixed. i'm diana olick in washington. >>> a new report out today from the state higher education executive officer association says it would cost $34 billion to make college financially accessible to all students. david tanberg

diana olick has more. >> reporter: you would think the nation's homebuilders would be on cloud nine given the high demand for housing. but shortage of buildable land and labor, not to mention material costs, are bringing builders back to earth. may's reading was revised down by one point. anything below 50 on the index is considered positive. but confidence has been falling after a big surge following the presidential election and the first executive order lifting some environmental restrictions. the index's three components, confidence in current sells conditions as well as expectations fell, and buyer traffic fell into negative territory, after new home sales in april dropped dramatically, due to a lack of starter homes for sale. the stock of existing homes dropped to another low, down 11% compared to a year ago. the average house sold in may went under contract in just 37 days, another new record. redfin measured a 2.7-month supply. homebuilders claim they are starting to target that entry level market. but they're still not hitting the price point that most young buyers can afford. fo

i'm diana olick in washington for "nightly business report." >>> the powerball jackpot has grown to $4 million. we decided to take a moment and daydream about what all that money could buy. here's robert frank. >> if there is a winner for saturday's powerball jackpot, the lifetime payout would be $435 million. the lump sum, which is recommended, would be $273 million or only around $200 million once uncle sam takes his cut. state and local taxes and the federal bill later in april could bring the total to under $150 million. but that still leaves you with some good walking around money. you could buy this house in beverly hills, california, with a gold champagne room, a gold rolls-royce and a come lagold lamborghini and two pools. this new bugatti tops 288 miles an hour for only 3 million bucks. you could have bought two of the most expensive diamonds ever sold, the pink star, 59.6 karats, pink flawless, for $71 million. if you want to quit your job and retire on that yacht, you can hop aboard the $80 million silver fast. it's 250 feet. it's got an outdoor cinema, eight-person glass ja

diana olick has more. >> reporter: you can't buy a house if you can't find a house for sale. that's the problem plaguing the housing market this spring. the number of buyers signing contracts to buy in april fell 1.3%. some were expecting a slight gain. these so-called pending home sales which close in a few months are now down 3% compared to a year ago. the trouble is too little for sale just as demand is growing. more listings came on the market in april. but supply is still down 9% from a year ago. realtors say they did not expect the situation to improve much this summer as homebuilders are still operating well below historical norms. the hotter months are unlikely to cool demand, which is why home prices continue to sizzle. for "nightly business report," i'm diana olick. >> the federal reserve says the economy grew in april through late may with most regions describing growth as moderate to modest. in the central bank's latest survey of economic conditions, the labor market is being characterized as tight, with companies citing worker shortages across a range of occupati

diana olick looks at the options that is spurring demand. >> reporter: at a brand-new development outside of denver, a luxury home bui i active adults. baby boomers who still want high-end homes and a million dollars to get them. >> this is the last house you're going to have. you have to get what you want. >> reporter: active adult communities are booming with the boomers, from high-end to more affordable brands like this community in atlanta. the draw of these communities is not only the constant services available and the single-level homes but the constant activity. >> the biggest challenge i had when i moved here was managing my calendar. there's too much stuff to do. >> reporter: for those looking to a more urban setting, ondos are also seeing growth. you get all of the benefits of a full-service building downtown without the loud young neighbors throwing parties or toting babies. >> only the baby boomers who had substantial equity in their homes are downsizing. that tells me that they are not downsizing to something cheaper but smaller and in the city and have all of the lifestyle

diana olick has the story. >> reporter: getting out of bed to work out is tough, but what if the bed were right next to the gym? >> we have always wanted to do a room that was built around movement and mindfulness. >> reporter: hilton hotel is betting you'll pay more for this added incentive, 45 bucks more per night for the five feet to fitness room. >> one of the most fascinating elements of this entire space is the sheer volume of different activities and options -- >> reporter: in a small space. >> -- that are here, right >> reporter: right it's a tiny space. >> exactly. >> reporter: it's not just a bike and a yoga mat, but an app rots of active amenities, like sandbags, a ball, foam roller, trx -- >> okay, let's go! >> reporter: and a screen with ondemand instructional videos and routines for every piece of equipment. >> the great thing is that it takes the guess work out of it. >> reporter: so, would you pay more for this instead of just going down to the regular gym? >> no, absolutely not. >> reporter: why not >> because i can get it all right here why would i pay more just to

diana olick has the story. >> reporter: getting out of bed to work out is tough. what if the bed were right next to the gym? >> we have always wanted to do a room that was built around movement and mindfulness. >> reporter: hilton hotel is betting you'll pay more for this added incentive. 45 bucks more night for the 5 feet to fitness room. >> one of the most fascinating elements of this entire space is the sheer volume of different activities and options that are here. >> right. it's a tiny space. >> exactly. >> it's not just a bike and a yoga mat but an apparatus of amenities like bosu balance, trx and a screen with on-demand instructional videos and routines for every piece of equipment. >> the good thing is, >> reporter: so would you pay more for this than going down to the regular gym? >> no, absolutely not. >> reporter: why not? >> i can get it right here. why would i pay more to have it five minutes away. >> reporter: for budget crunchers, maybe not. but for others -- >> i do a series of stretches before i walk out of the room. so for me, that would be very

back to you. >> diana, thank you for that diana olick. switching to uber.ing down take a listen to uber board member arianna huffington talking about the uber culture when we spoke to her earlier this month. >> the numbers released yesterday showed that out of 215 complaints, 122 are not corroborated 47 were about sexual harassment. so it all depends on your definition of disturbing, but what matters and what my commitment as the only woman board member is is to take that number and reduce it to zero >> for more this morning we're joined by former metronics ceo and jeff sonnenfeld. >> controversy, jeff, around kalanick is not new. why do we think the board acted now? >> i think now they recognize that with his future uncertain, recruiting a chief operating officer with five players of unknowns around makes this a very hard job to staff running the company as a committee of 14, find a town square or a village anywhere that has a statute of 14 people on the committee they need some bold leadership in there with kalanick's uncertain return, this was too confus

kb home just crossed let's hit these quickly with our diana olick. diana?beat for kb home they reported revenues up 24% to $1 billion and earnings per share rising 94 cents to 33 cents a share hand street was looking for 36 cents a share ceo jeff metzger said they produce income margin combined with backlog and positions for meaningful improvements in our results going forward. he says about the housing recovery, it continues to be on a steady path supported by favorable industry fundamentals. recent improvements in consumer sentiment and employment combined with relatively low mortgage interest rates. he does note there's insufficient supply to satisfy the current demand for housing especially on the existing home front. average selling price increased 11% to 385,900, a big increase but not as big as the street was looking for. we're waiting to see the lower priced home. still, that's above the median sale price that we saw in may from the commerce department, so still pretty high. still gaining in prices. not getting to that low entry point that we would

should you be re-fiing right now diana olick has some answers >> people looking to save cash on theirortgage payment but millions are not biting either because they don't know or don't want to go through the hassle close to 4.5 million borrowers, maybe you, are eligible and have a financial incentive to refinance, according to black knight financial services. this is an increase of 1.6 million borrowers from just a few months ago when mortgage rates were higher. the average rate on the 30-year fix has dropped below 4% for the first time since the presidential election when rates spiked that brings the new refinanceable population to the highest point of the year. the math factors in closing costs. at today's rates, the average borrower could save $260 per month. nearly 700,000 borrowers could save $400 or more per month. mortgage applications to re-fi have been gaining in the last month, up 9% but still 30% below a year ago levels many think it's not worth the trouble but some could be looking at a few thousands dollar as years in savings and that's something if you've missed the numb

diana olick reports from washington. diana?reporter: well, borrowers saw an opportunity and jumped right in. despite all the talk of rising rates, rates have actually been falling lately and last week dropped even more. the average rate on the popular 30-year fixed came down to 1.41% from 1.47. just from a reference, rates jumped from 3.77 to 4.16% in the two weeks following the election, last november. now, the drop last week caused a big rush from potential buyers. those mortgage applications jumped 10% for the week. refais got a small boost, too. but they're far more rate sensitive and rates were lower for the bulk of last year when so many people already refi'ed. interesting in the numbers, a big jump in the number of borrowers applying for adjustable rate loans, up 26% from a year. a.r.m.s carry a lower interest rate. one caveat, though, these a.r.m. loans are not the super risky loans of the past. a.r.m.s are fully underwritten today with strict credit and debt limits. they are, of course, riskier than a 30-year fix. more

diana olick was able to speak to him about the hot button issue of freddie may and freddie mack. >> reporterred june national homeownership month. i sat down with secretary car sob to ask specifically about nan my and freddie. he said he has been in constant talks with secretary treasure in nuchen about what to do. hes they need to get the private sector back into the mortgage market. they need a backup for whatever fannie and freddie become because he points specifically to international investors in the mortgage market. he'd like to see risk sharing between the government and private investors. and he said he could use a little government seed money to entice investor noose the mortgage market and programs get them into affordable housing, no two investors in fannie and gred freddie. he says he was not opposed to them getting their money back. >> i think that would be the even ground. i don't think you want to do that in one fell swoop because you need to be able to see what's happening to the markets and the gradual manner so that you can take corrective action, if anything is necessary.

keep falling, raising the chorus of voices expressing concern about a 2007-like bubble in housing diana olick joining us from what may be the hottest housing market in the united states, washington, d.c. diana. >> reporter: you may be right. the latest gains on the s&p case-shiller home index hit a new high but were smaller than expected the national index rose 5.5% year over year in april, down from 5.6% in march the ten-city composite came in down from the previous month and the 20-city was up 5.7%, also down from march. now, here comes the perspective. these are prices recorded on closed sales in april, so sales that were negotiated in february and march. since then, the inventory situation has only gotten worse due to higher demand in the spring and still record-low supply seattle, portland and dallas reported the highest annual price gains, and seven cities had bigger annual increases in april than in march. now, s&p's david blitzer raised the question in the release of a potential bubble or even a potential crash, but then he knocked it down, saying that demand and employment still supp

. >>> some economic data diana olick has the numbers for us. >> home buyers sentiment dropped to 67 andevised down by 1 point. anything above 50 is considered positive, but confidence has been falling steadily after a big surge following the presidential election and the first executive order lifting some environmental restrictions. given the shortage of housing builders should be happier but they continue to struggle with shortages of labor and buildable lots costs for materials, especially lumber are also going up of the indexes three components, current sales conditions fell to 73 and sales expectations over if next six months fell two points to 76 the traffic dropped two points to 49. that one the only one in negative territory i asked the ceo of the home builders association this morning if the drop in sentiment has to do with the lack of more deregulation from the trump administration he said no he said builders are looking forward to financial reform in banking if the trump agenda stalls though, that may bring confidence down even further all the numbers are online, realty check.

generation is changing the way we communicate travel and work and now it's changing the way we live diana olickashington this morning diana? >> well, andrew, as we just saw from housing starts, they're still very weak which means that demand for rental housing is very strong. especially rental apartments and that means it's very pricey. in order to cut costs for the millennials/social generation, one developer in chicago is trying an experiment taking social living to the extreme. >> a little bit hesitant then i started to think about it more and i thought, and i thought living alone wasn't that great >> reporter: dan is co-living in an apartment specifically designed and built for three independent residents. it's not just a roommate thing each room has its own bathroom and the common area is fully funished with all the amenities from flat ware to flat screen and each resident has his or her own lease. the monthly rent is cheaper because of the share it's the brainchild of ryan sheer of property markets group, an department developer operating in new york, miami, and chicago. >> how do you mak

a third of boeing's total 2016 revenue >>> mortgage rates falling for the second straight week diana olicke on that news. diana? >> who would have thought that rates would drop back down to where they were right around the presidential election. but that is the case right now and that had mortgage applications up another 2.8% last week. all on the bang of refinances. refis jumped 9% for the week, seasonally adjusted. that according to the mortgage bankers association. apparently there are still some people left who haven't refied already, possibly those who've finally come up from underwater on their home loans. refinance applications have jumped 13% in the last two weeks. and the average loan size hit the highest in almost a year that's because jumbo borrowers can see bigger savings off every rate move and the summer can serial refinancers looking at the numbers because the average contract interest rate on the conforming 30 year fixed fell to 4.13%. jumbo rates are even lower home buyers, though, not as thrilled mortgage applications to buy a home fell 3% for the week. they're almost 8%