for nightly business report, diana olick in washington. >>> heading to the beach? you first might want to see if your state passed its budget. >>> the world's biggest casino huck saw revenues rise sharply in june. macau said revenue rebounded after a more than two year tumble as demand from highroller vip's accelerated. macau is the only place in that country where gambling is legal. >>> you may have noticed a change to your credit score, as of july 1st, all civil judgments and some tax liens will be removed from credit reports. this is a result of changes in policy. this is expected to affect 10 to 20 million people, with their credit score rising 20 points. >>> according to the tax foundation, indiana has the only corporate income tax change with the rate decreasing to 6%. individuals in kansas will see their income tax rates rise. tennessee reducing its sales tax rate on groceries, and six states indiana, montana, new jersey, south carolina, tennessee and west virginia have increased their gas tax rates. >> the illinois house of representatives passed a final bu

for "nightly business report" i'm diana olick from watching to be. >>> starbucks leave investors with a bad taste. quarterly profits matched while revenue came in light. the coffee giants saw global same store sales thanks to higher customer spending. it still wasn't enough to beat estimates. starbucks said it would close all of its struggling stores. shares were volatile in after hours trading but they ended the regular day at 2% to 5950. >>> anheuser-busch imbev ended sales higher. earnings grew but not enough to top analyst estimates. shares jumped 6% to 122.84. comcast earnings topped expectations thanks to higher revenue in the company's filmed, entertainment and themed park businesses. the results were ahead of the expectations and the sales giants will be ahead. shares of comcast were up by 8 cents to 39.43. dd. >>> and twitter is having a difficult time attracting new users to its platform. the social media company reported user growth that stalled from the previous quarter. earnings and revenue, however, did beat street targets but that was not enough to improve investor sent

diana olick tells us why cash is king. >> reporter: t in the dallas suburb sold in less than a week. not surprising to anyone who's out shopping for a home today. >> every house kind of goes pretty quick, you know, it's not on the market very well. >> reporter: in fact, laura barnett, the agent showing the house, put this similar home on the market three weeks ago and got 22 offers. but she did not take the top one. with today's prices rising so fast, she took the cash offer because today's appraisals are not keeping up. >> yes, they are coming in low. they're putting a glass ceiling on our market. >> reporter: barnett says sellers don't want to risk a deal falling through due to financing. even if they have to take a little less money. the median price of a home sold in june hit a new high according to the realtors but days on market dropped dramatically, with homes going so quickly appraisers can't keep up with the comparable sale prices. >> they are being instructed that unless they have actual comp from past sales, that they cannot go on just the fact that they've been given mult

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. >> meantime the latest mortgage application data just out in the last couple of minutes diana olickoins us with nor on those numbers. diana? >> wilf, a big drop in mortgage applications -- mortgage demand last week due to a big jump in interest rates for the past two weeks. take a look, total mortgage application volume fell 7.4% seasonally adjusted compared to the previous week. the mortgage bankers association did include an adjustment for the july 4th holiday volume is now 36% lower than the same week one year ago now, why rates. the ten year treasury yield, which mortgages loosely follow has increased 18 basis points over the past month so mortgage rates are back to their highest level since may. last week the average contract interest rate for 30-year fixed mortgages with conforming loan balances went to 4.22% from 4.20%, and that's for 80% ltd loans. higher rates have the biggest effect on refinance applications they fell 13% for the week to the lowest level since january of this year now refis have fallen off 58%. 58 compared to a year ago. mortgage applications to buy a home

and think it would be a great idea to buy a house there and rent it out for some of the season diana olick joins us with a look at a new product to help you determine whether that investment will pay off. diana? >> well, becoming a landlord today looks like a no-brainer. there are lots of companies to help you buy, manage and even renovate rebtal homes. with home prices sky high, demand for rental homes is stronger than ever but as you said, not every property will offer great returns, and some, well, they could offer very great risk. so roofstock which is an online market for single family rental homes is launching a new rental index that rates every neighborhood in the nation for risk 72,000 separate census tracks with about 1500 homes per track. beyond home values and rent prices, it looks at several other metrics like income and education levels of the local population level of owner-occupants, employment, school ratings from elementary to high school among other things, and then it ranks their risk on a five-point scale. >> what our index does is it breaks down a city into very little

. >>> diana olick. >> june's reading was revised down as well the street was looking for 68.o this cis a big miss on the wells fargo. still in positive territory but the lowest reading since last november before the presidential election sentiment spiked after that as the home builders thought the trump administration would give them deregulation in the market. they did get some of that in march and home builders sentiment spiked again following water deregulation the problem now, canadian lumber ta t tariffs, growing increasingly concerned over rising material prices, particularly lumber, from nahb chairman mcdonald. hurting housing affordablity even as consumer interest in the new home market remains strong current sales conditions down two points to 70 sales expectations down. fire traffic still in negative territory down one point sentiment was pretty much down across the nation, up one opponent in the northeast to 47. again, that in negative territory as well. a big miss on home builder sentiment. we get housing starts tomorrow morning at 8:30. back to you guy. >> thank

diana olick is here with the latest story >> reporter: two changes in underwriting mortgages go intoth. both are designed to help people qualify for a home loan, but both will add risk to the market first, the credit agencies are drop i droppi dropping tax leans if they are not fully documented about 7% have the credit hits. without them, the fica credit scores could go up by 20 points. that's according to a study by sarah isaac. and fannie me a and freddie mac will increase their dti limits to 50% due to today's high student level debt the fannie may chief economist says the risk to the overall system is low, but others say the market's appetite for risk hasn't changed so lenders tighten elsewhere. >> there's a belief there's a windfall for consumers that consumers will be able to get more credit. well, the reality is the risk in the marketplace has not changed. the information that is used to assess risk is what is changing. so for banks and others extending credit, if they want to maintain the same loss rates, they have to tighten credit somewhere else it is pure math. >> and yes,

. >>> amazon's plans to acquire whole foods could change the landscape for retail real estate diana olicking us. >> the value of the strip mall centers of the whole foods shot up and competitors are facing a big challenge. centers of whole foods will see more foot traffic especiall especially -- now they have a reason to go prices are lower and they picked up some bedding along amazon while that will hit the grosser chain and connected stores, it will hit the real estate underneath harder. >>. >> the best retailers are likely to design being in the whole foods center >> lets talk about the reads that could take a big hit. regency, roic and wine garden. the most expose todd the whole foods competition. on the flip side, regency as a feud and american asset. they don't compete with whole foods and they're still doing very well. a lot more of the online check out cnbc.com >> can i ask you a basic question, do we know for sure that amazon plans to use whole foods as distribution. i guess it is logical but i am not convinced at this point. >> there could be a drive through window at the whole

diana olick has that live in washington for us. >> prices are still going up by a lot.nd that's why the median value of all u.s. homes has now surpassed $200,000 the highest level ever even than the last housing boom. and that's according to zillow you're probably saying, wait, the realtors just reported a higher number than that yesterday and have been for awhile that's the median value of homes that sold. and right now more high end homes are selling because there are so few cheap homes for sale nap skews the median higher but it doesn't speak to the value of all homes in america zillow is using a different model that looks at sales but extrapolates that out to comparable houses not for sale for the first time zillow reports that median value hit $200,400 which is up over 7% from a year ago. why do we care if we're not selling the house? two words. home ec withquiequity that the s the primary cause of foreclosure. there are still 1.8 million under water but that number is falling faster than ever when borrowers are under water, it is of course tough to refinance and c

. >>> as the weather gets warm, people go house shopping diana olick is joining us now. >> hi, home saleso gains compare to the first half of last year. call it a side way spring. pending home sales, etching you will slightly in june but only after falling the past three months so despite low mortgage rate home sales did not see any big gain the problem is supply, which is down 7% compared to a year ago prices are surely playing as well and we have seen record sales and prices nationally for seven months part of playing affordability. first time buyers may want to get in but saving for a down payment is difficult that's adding to the supply crunch more online, check on realitycheck.com >> diana, thank you. >> this one keeps flying high. violence in venezuela is just one global hot spot we are watching are there thats oretour stock rally? next on "power lunch." >>> hello everyone, i am sue herrera, security in austria on high alert after federal police there announced they have stopped a plot to attack an aircraft four men were arrested in sidney tropical storm emily has formed in the gulf

diana olick joins us now from washington with more good morning, diana. >> good morning, joe the twoes in underwriting that go into effect this month should help thousands more borrowers qualify for a mortgage but no question, both will add risk to the mortgage market. first, the credit rating agency, they're dropping tax liens and civil judgments from consumer's profile. of the 220 million americans with a credit profile, about 7% have these credit hits without them, their fico credit scores could go up by as much as 20 points per person now, second, and unrelated, fannie mae and freddie mac are increasing their debt-to-income limit for borrowers. it's going from 45% to 50% of your income allowed towards debt payments that's a reaction to today's high level of student debt and yet it means consumers will be saddled with even more debt but fannie mae's chief economist claims the risk to the system is still low. >> in this case, we're not changing the underwriting criteria and we believe that the initial increment of risk when making that change is very small. and given how pristine c

joining us is diana olick with the scoop on the fit economy hey, diana >> hey, michelle we know boutiquesh term. but one of its hottest players, barry's boot camp has been around for almost 20 years it was just in california, kind of a celebrity favorite, but now the company is expanding aggressively, and globally, joining us with the new's is barry ceo joey gonzalez in a first time cnbc. i'm going to let you give us the exclusive news tell us what's happening >> hi, thank you we just recently announced, today, that we are expanding into five new territories. three are domestic here in dallas, d.c. and atlanta and two more additional international which are toronto and stockholm. >> and so you're expecting directly to expand given what you've done this year by 30% in basically a year, which is very aggressive why now when there's so much competition in the space >> so, barry's has been around for two decades. and for many, many years, the brand has been a lot bigger than the business and this is really just about catching up to our brand we recently did a transaction with north capital p

diana olick has that story. >>> this is a real estate story.rip mall centers with the whole foods just shot up and competitors are facing a big challenge centers with whole foods will see more foot traffic. especially by those who may have stayed away because of higher prices, now they have a reason to go if prices are lower and maybe picking up some bedding they may have ordered on amazon. other centers with competing grocers will likely see less foot traffic while this will hit the grocer chain and connected stores, it will hit the real estate underneath even harder >> you might see a degradation, you might see situations where rent growth stagnates, at the end of the day that's happening because the best retailers are likely to desire being near the whole foods center >> so let's talk the reits that could take a big hit regency, roic, and weingarden. those were called out in a recent note as most exposed to the whole foods competition. on the plus side, reits that own strips with whole foods, also regency and american assets. one exception t

back to you guys >> all right diana olick, thank you. >>> some stocks to watch this morning, glaxosmithkline$43 million deal with privately held a.i. company. the two companies plan to use the partnership to speed up the drug delivery process. and barron's says bristol-myers squibb is undervalued because of the company's immunooncology drug they say investors appear to be ignoring the market that the drug has already been approved and casino markets in macau could see a boost today after beating revenue in the chinese administrative region rose more than 24% in june compared to a year ago that marked the 1th straight monthly increase financial information provider bank rate is being acquired. the provider is digital marketing company called red ventures it will spend $14 in share for bank rate or a total of $1.4 billion >> and in hollywood news despicable me 3 topped the weekend box office universal's latest entry in that franchise drew 75.4 million dollars in north american ticket sales. universal is owned by comcast, the parent of nbc universal and cnbc shares of comcast year to date up 7.