for "nightly business report" i'm diana olick in washington. >>> and to read more about these nonprime mortgages, you can go to our website at the nbr.com. >>> an influx of investor cash help the resulr at black rock and that's where we begin the market focus. ldring an increased of market volatility the w largest money manager as total assets saw an up tick t more than $6 trillion. a new lower tax rate helped results as well as did a scramble by investors to rebalance their portfolios. >> you saw huge infloes and outflows. we had one client who sold a big pool of money for an mna transaction. ey were selling assets for more capex. it was a combination of everything butevtheless we did see consistent interest. we're seeing more and more interest in global investing. >> shares of black rock climbou 1.5% to $533.01. delta airlines reported higher than expected earnings even as higher fuel and labor costs impacted its results. the airline ceo was pleased with the wrformance. had a great first quarter in terms of demand. record revenues for delta up 8% driv interestingly not just on the do

i'm diana olick in washington. >>> general motorss cutting jobs and that's where we beg night's market focus. the auto maker says it plans to eliminate more than 1,000 positions atts ohio plant due to falling chevy cruz sans. the locathat makes the compact vehicle has experienced weak we weakening demand. gm shares off a fraction t 38.73. pnc financial i said that quarterly results were held by unitgth in its commercial and by higher interest rates. earnings at the regional bank were in line withte esti but revenue came in a little light. the bank says it plans to set aside more money this quarter for loan losses and added that loan growth is likely to slow. pnc shares were off by 4% to 145.46. antesla's ceo, elon musk, said that he expects the automaker to be profitable and cash flow positive in the third and fourth quarters of this year. musk also reiterated that the company would not immediate raise additional capital this year. that upbeat outlook lifted shares ofy tesla 2% to 00.34. and alaska air reported a 6.5% rise in traffic in march from a year ago. the airline also a gave up

for "nightly business report" i'm diana olick in washington. >>> coming up, p closing the gap. men and women don't earn the same salary for the same job. ♪ >>> a federal appeals court has ruled that employers cannot pay women less than men for the same ork if it's based on th woman's previous salary. now the court said that pay differrices based on salaries are inherently discriminatory. the lawsuit involved a female california math consultant who sued fresno state after she found out that her male lleague with the samitle was paid a higher salary. >> finally tonight, today is equal payday. a day meant to f symbolize h into the year a woman must work in order to earn the same amounm that a earned the previous year. wage disparity has become part of the national conversation, and so we ask leslie picker to take a look at the nation's gender pay gap. >> reporter: the figure most mmonly cited is20%. women's median earnings br abo 20% below that of men. that 20% adds up over time. it equates to about $400,000 in lost wages over the course of a for millions of women pay parity would

the number of listings is no match for demand and homes are selling not in days but in ur diana olick reports on the hotter than hothousing market. >> families toured a fivedr m house listed three days before at $600,000. already had two offers on it. >> the market is chasing the house houses. >> they kept the sunday open on just in case. >> competition is so fierce, that more buyers are jumping at deals and backing out. hurting the seller. >> it'sbl incre difficult to re-create the sense of that you have a chance to create the first time you go on the market. we advertised it we would not look at offers until monday. just to put that strategy in place. >> t urgency spiked even more this week as mortgage rates stuck in place for a month, suddenly moved higher. >> the glory days of being in the 3%s are well over, people are definitelyed more conce now of rates going higher toward 5% and beyond. i >> whierest rates are still historically low, home prices are rising vey, quic and bidding wars are the rule. not the exception. that leave buyers with less wiggle room in their budget fore an

defaults on those loans were a major cause of the financial crisis our diana olick found those mortgages are back risky business this is week's cover story. >> reporter: subprime. the word conjures up these images they disappeared following the financial crisis, now lenders are dipping back in. just don't call them subprime, call them nonprime. >> we're not going to the bad old days of ninja leaned are lending where people with no jobs, no assets no income were getting loans, that was crazy. >> reporter: carrington mortgage, a mid size lender that mostly does fha loans, is expanding into the nonprime space, focusing on 20% of americans who have fico credit scores below 600 carrington will accept borrowers with credit scores as low as 500. today's average borrower is the mid-700s recent credit events like foreclosure and bankruptcy are okay loans up to $1.5 million and cash out up to $500,000. self-employed borrowers can use bank statements to verify income instead of tax documents carrington says there is big demand from both borrowers and investors. >> we're going to keep some of the lo

diana olick joins us with the details. hi, di >> hi, ty. you can thank fast rising home prices and tighter lending for the record amount of tapable equity available that's the amount of home equity above 20% of the home's value which is what lenders require for you to crash out $5.4 trillion at the end of last year that's total, or nearly three times what homeowners had during the recession, and 10% more than what they had at the peak of the last housing boom. it rose by $735 billion just last year as home prices soared. unlike during the last peak, though, today's homeowners are far more conservative. last year, they took out just $262 billion versus cash-out reifies or home equity loans of credit that's less than 1.25% of all home equity, which is a four year low that when more than half of equity is held by borrowers with high credit ratings. so what will they spend it on? you know it, remodeling, which is projected to rise dramatically this year, mostly because there's so little for sale on the market people are choosing to stay and ren

diana olick has more >> it means rates jumped to the highest level in four years yesterday because theythe ten-year treasury yield. it's not really the current rate which is still low, but the fact that rates are on the move higher again and that scares home buyers. the 30-year fixed shot up to start the year and then sat and even came down a bit last week it turned up again and the expectation is that it will keep rises so we went to an open house in philadelphia to gauge buyers the $600,000 home had two offers by sunday, and buyers were much more worried about finding a house they could afford in this market than rates. but a lender on site said high prices and high rates have buyers stretching on the mortgage and putting less done >> once you get to the 500,000, 600,000, 700,000 price range, it w used to be 20% down, now it's more like 5% >> the underwriting is still tight. the risk is if prices fall, but that can happen. >> we want to bring in mike frantoni i understand this will not destroy housing. nobody is saying that. is there a fear as rates creep up, people who are thinking o

>> thank you diana olick. shares of hd and lowe's sunk today. could this give the home equity system a boost joining us is alan, home analyst at btig. thank you for joining us home depot down 3% i think it's down 15% from the recent highs lowe's down as well. is any of this fundamentally justified? >> on the surface both home depot and lowe's would be beneficiaries because through an increase in home equity lines of credit, this would be unlocking capital that's presently tied up in liquid assets of -- and that base would be transferred into capital which would be in the form of discretionary spending one would have to believe home depot and lowe's would be beneficiaries of that. >> one would believe, but look at the shares. so, home depot is down 3% today. down 15% from its recent highs. any reason this selloff is justified? >> i think selloff for both of these stocks -- certainly, these are highly cyclical names. with the fed committed to raising rates at least three times this year and three times next year, the fear on the part of the invest

diana olick, good morning. >> existing home sales in march up 1.1% to a seasonally adjusted annualized 5.6 million units. that's a beat. the street was looking for a slight drop. sales down 1.2% year over year the bounceback in the northeast and midwest where weather had been keeping sales lower they bounced back significant. sales down in the west, 3.1% the big story is always prices median existing price, $250,000, $400,000 that's up 5.8% year over year and the 73rd straight month of price gains. why? because there's nothing for sale inventory, 1.67 million units. that is down 7.2% year over year to just a 3.6-month supply of homes for sale six months is considered a balanced market. a lot of new listings are coming on and demand is so strong they're flying off the shelves first time buyers struggling at just 30% of the market we talked to realtors. it's all about prices and inventory. first-time buyers trying to get in but struggling, and now we have rising interest rates we'll be watching that this week, of course, on top of those high prices. back to you guys. >> a lot of those dy

. >>> a lot more expensive to buy a home these days, we go over to diana olick with details on affordabilitys are bigger as listings are leaner. the median price of the home sold in march increased 9% from a year ago to $297,000, according to a real estate brokerage, the biggest annual increase in four years high prices are the result of very, very low supply, which was down nearly 12% in march an dmulldmul dmul -- annually housing starts down 3.7% for the month, but not close to historical norms before the last boom hermits, indicator of future construction, fell as builders' confidence as the cost for land, labor, and materials rise. lumber prices up 28% compared to a year ago, and that's framing and osd, and in contrast, multifamily construction is still increasing builders seem to be banking on continued strong demand for rental apartments as home buyers struggle to buy and afford homes they want. and adding insult to injury today, mortgage rates jumped as the 10-year treasury yield which they loosely follow broke hi higher nothing like an alligator, but maybe close. >> or worse dependin

. >>> subprime mortgages are back but don't call them subprime diana olick explains. >> reporter: non-prime that's what we're calling them now. they're still mortgages made to borrows with poor scores and high debt. they' carrington says they'll accept borrows going down to 500. they'll accept recent credit events like foreclosure or bankruptcy, as is a history of late payments. they'll cash out refis self-employed borrowers can use bank statements. >> we're going to keep some of the loans on our books, but we'll secures atize some of the loans. people want to buy non-prime loans that have been properly underwritten. >> properly underwritten, that's the key to remember. carrington says they'll manually underwrite each loan to account for individual risk. if you have higher risk you have to put down a higher down payment or have more cash reserves your interest rate will surely be higher. much more on this new non-prime market on cnbc.com back to you. >>> those cherry blossoms look lovely down there. fathank y thank you you. >>> one of the world's largest food companies, danone say it's beco

let's get to diana olick for that >> pending home sales for march rose 0.4% compared to february thatof realtors b february's number was revised down that's the third straight month of declines. it's a forward looking indicator of closed deals for april and may. realtor continue to blame tight supply but are focussing on weakening affordability. these sales were made just before mortgage rates jumped at the start of april they eased up from the highs in january but the chief economist believes affordability will be a driving factor of whether or not overall activity can break out above year-ago levels. price appreciation in most markets continues to outpace incomes and higher rates make that tougher march sales fell the most in the northeast where they blame bad weather. small gains in the midwest itself and out west. back to you guys >> diandiana, thank you. >>> t-mobile buying sprint in the all-stock deal what the ceos told us and the potential regulatory hurdles ahead. >> shares of mcdonald's surging. >> and the world's unicorn a look at the only white/gold daytona rolex in existen

thank you >> all right, one industry short of feeling impact from rising rates is housing, and dia diana olick has the report >> reporter: better than in march, based on january and february when rates really jumped the 30-year fix got up to start the year, and for the past month, it sat and came down a little bit, and then last week, turned up again, and the expectation is that it will keep rising, so we we want out to an open house in suburban phillie yesterday to gauge buyers, the 600,000 home listed last thursday, already had two offers by sunday. buyers were much more worried about finding a house they could afford than about rates, but a lender on site said high prices and higher rates suddenly have buyers stretching on the mortgage, putting less down. >>. >> once you get to the 500,000 price range, it was 20%, and now you can do 5%. we are seeing that, absolutely, especially in the past year, that spiked up >> reporter: now, less skin in the game, but the underwriting is still tight the only risk is if home prices fall, which is unlikely now, but you know, it can happen. right? we learn

higher, and home prices are going up, all that is making it harder and harder to afford a home diana olickth more now. >> it is the perfect storm, price, interest rates, demand all rising amid a critical shortage of homes for same it's. slaing affordable and causing buyers this spring to overstretch. affordability is expected to weaken at a the fastest peace in a quarter century. it's base on a homeowner's monthly payments weakened by 5 thrz this year and could weaken another 10 to 15% by the end of the year thanks to rises in interest rates. the average payment could rise theresa taylor has been selling homes almost a decade and says she is seeing more buyers than ever getting in over their head. >> we have some concerns when we see people putting so little down, a small earnest money deposit down, and you can literally see on paper -- you could see them stretching to make this happen there were more inventory that wouldn't be happening. >> reporter: the share of borrowers with debt payments more than 45% of their income more than tripled in the second half of last year and continue this