diana olick has more. >> no question lenders were busy last week as mortgage plications surged thanksa steep drop in interest rates. applications to refinance a home loan jumped 39% j int one week and were % higher than a year ago according to the mortgage bankers association, thiss the average rate on the 30-year fixed fell sharply at the end of just over 4 at the start of h it was 4.5% and that dropped 4. 9 billion borrowers could drop it by three-quarters of a percentage rate and that's a nearly 50% increase who could benet in a single week. potential homebuyers did not rush to lenders and purchase mortgage applications rose 3% for the week,ut were 10% higher than the same week one year ago and in the category of you snooze you lose, rates popped back up this week and could make the next big move on friday when the all-important monthly employment report is set for release. for "nightly business report," i'm diana olick in washington. >>> two dow components out with news tonight. verizon isng rol out its 5g network earlier than expected. the nextseneration wirel service will hit ch

diana olick breaks down the numbers.u're looking to ren apartment it may take you a while to find one. the vacancy rate e at the of last year fell to the lowest level since 1999. this, even as more renters become buyers. >> resident retention when leases come up for renewal is at record level. so while you mig be losing more people to home purchase they're moving less frequently for change or for change in household configuration. >> low viaccy means landlords can have for much of last year as new appliance supply can hit the market andn some markets, the gains are causing burdens r renters. the worst, miami, san diego, l.a., new york andor laend owe according to a newy sur from freddie mac. in this nair areas way more, in some cases even half their incomes. >> san francco has the second highest rent in the country and 13th on the most risks of burden because salars are high. >> pretty much having a roof over my head over going to try to save up for a nice car or a nice vacation is just kind of heartbreaking. >> even ren

diana olick explains. >> greg hart was house rich, but cash poor and heto wante pay off some debt.did not want a home equity loan. >> to go with the regular helock meant i wasrading one payment for another and i didn't see that was going to get me any further ahead or pay off. >> instead, he went with a new idea from a new company, point. point helpedim to sell equity investor, to an $50,000 cash. it was one of the easeiest processes i've ever done especially in regard to a refinance for a mortgage. >> eddie lim had the same issue getting a loan which is why he started point. >> the biggest asset that i own. the biggest asset that most of and allin our lifetime we can do is add more debt and that's where point camown. >> here'st works. say the home is appraised at $1 million, point lowerhat value, say by 15% so it's now $850,000. that gives point a $150,000 cushion against risk then point gives the homeowner say, $100,000er cash. the o has up to ten years to return that cash, but can exit e contract at any time. when the owner does, point gets the initial $100,000 back plus a perce

diana olick has details j. >> on the grandt streets of greenwich where they lay their heads to rest.it's across the board it's a problem. the real estate agent is not the first agent on this six bedroom and nine bathroomolial and it is indicative of everything going in high-end greenwich today. the market for over a year, started at m$5lion and dropped to $4 t99.5 and now leahy is dropping ito 4.5. it is due to the change laws hitting this market hard. you're looking at $5, 6, 7 million dollar properties that pay $100,000 in taxes andwh tha it does is impact value and it takes a whileo impact on what that is. >> greenwich sales were down 25% compared to a year ago. th median price down 17% to just over 2 million.da on market, 214, and inventory is up to a two-yearsu ly of homes for sale. in other words -- >> it's a great buy right now. so my buyers are getting awesome dealand i had a buyer who bought a house for 6.6 million and i have a buyer who bought house for 750,000 that was originallyn r 109,000 and you get a deal for every price range. >> and that makes it ama nig for sellers

diana olick explains in our continuing series on the rising risks to real estate.church meeting house, in a small louisiana farmtown, a small community is ming a very big decision. >> the option to purchase. mu>> the cty up to 40 homes is moving together to higher ground. the state of louisiana is using federal fun to purchase land, build new homes, demolish the old flood-damaged homes and this neighborhood into wetlands. >> so you're going to knock dln f these houses and these, as well. >> right. >> pat forbe, who administers community delopment block grant for disaster relief is in charge. it is quite clear that we're having more disasters and consequently, we have to start doing things that are. smart one of the easiest, smartest things we can do is get peo e out oharm's way. >> it was built in the 1970s near a canal, but in the last decade it has seen more frequent and intense flooding. its levees no longer adequate. back-to-back floods in 2016 and 2017 drew the governor's attention and a plan was hatched to buy out the homeowners and move them here, barely two

for "nightly business report," i'm diana olick. >> he is the chief economist at trulia.ee you. welcome. >> thanks for havinge. diana laid out the interest rate scenario and the way that interest rates affect how people buy their homes or whether they buy a home.e what t of market are we in this spring? is it a buyer's market or still a seller's m we're still in a seller's market and we arey definit seeing signs of a gradual shift towards a buyer'sarket and we're seeing it in the most pronounced way in the most expensive market and they are hitting affordabilitynd ceilings first where we're seeing that is home sales that have started falling and not because fewer homes are being put on the market, but because homes are a harder time selling and we'reor seeing price cuts and we are seeing homes on the market longer and these are all telltale signs of a change in flavor toward a buyer's rket. >> but you have had an inventory problem for first-time buyers and not onough homes there for them to choose. is that starting to alleviate or not at this point? >> what we ie seeing i

house rich but cash poor there's a new way to take cash of your house without taking out a mortgage diana olickngton to explain. diana? >> reporter: kelly, you can sell the equity in your home to an investor it's all from a new start-up called point and they'll offer you cash up front with no monthly payments here's how it works. let's say the home is appraised at $1 million. point lowers that value, say by 15%, so it's now $850,000. that gives point a $150,000 cushion against risk and then point gives the homeowner, say, $100,000 cash. the owner has up to 10 years to return that cash but can exit the contract at any time when the owner does, point gets the initial $100,000 back, plus a percentage, say, 30% of any appreciation in the home's value. and here's where point can profit since it lowered the value to begin with, it automatically gets 30% of that $150,000 cushion or $45,000 if the value goes up, point gets more kingsbridge wealth management pledged $100 million to back point's contracts. >> as an investor, we do expect equity-like returns because we take equity-like risks if the home p

diana olick. >>> speaking of auto sales, they are expected to slow down in the first quarter. while that may raise concerns about the health of the consumer, it's n aotll bad news for auto makers. we'll explain after this her 150. ♪ her 150. to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪ did you know that americans who bought gold in the year 2005 quadrupled their money by 2012? even now, experts all across america predict the real gold rush is just beginning. don't wait another day. physical gold coins are easy to buy and sell and one of the best ways to protect your life-savings from the next financial meltdown. - [announcer] today the u.s. money reserve announces the immediate release of u.s. government issued solid gold coins for the incredible price shown on your screen. these gold american eagles are official gold coins of the united states and ar

moving on, and their multimillion dollar mansions are languishing on the market let's get out to diana olick on site with the details. diana? >> reporter: well, kelly, this home is on one of the grandest streets in greenwich six bedrooms, nine bathrooms there's a pool out there but it's been on the market for over a year, and in that time, the price has come down by nearly $1 million to $4.5 million. what's the problem changes to state and local tax deductions are changing home values here on the ground. >> i think everyone's gotten their tax bills. they're trming to figure it out. and i think that's affecting how fast buyers are willing to move. >> reporter: greenwich sales in q-1 of this year were down 25% compared to a year ago the median price down 17% to just over $2 million days on market, 214. and inventory is up to a two-year supply of homes for sale in other words, this is a buyer's market, not so great for sellers. of course, the homeowners here bought over a decade ago and they are looking at taking a loss. >> yeah, maybe they just stick around say why leave if we're going to take

spring market which really just began, may already be a washou for nightly business report, i'm diana olick in washington. >>> time to take a lookt today's upgrades and downgrades. price target now $240. that s fell nearly 4%. it was pressured by a video out of china that showed a parked tesla exploding. the inve d.r. horton waswn aded to market perform. the analyst cited the stock's valuation after a 30% runup so far this year. that stock fell more than 1 1/2% to 45.66. >>> still ahead, a plan outf shington to the cancelled student debt by taxing the superrich. >>> herman cain has withdrawn himself for consideration for a seat on the federal reserve board. he's the former o of godfather's pizza. t on d a former board s the kansas city fed. he's been cftical central banks. and in recent weeks, at four republican senators had come out against >>> social security's payments are expected to exceed its income next year. the fir time that has happened since 1982. this is all according to the latest annual report by the trustees of the social security administration and medicare which was release

cnbc's diana olick explains. >> reporter: at a small church meeting house, in a small louisiana farm town, a small community is making a very big decision. >> the option to purchase has been signed, signed today. >> reporter: the community up to 40 homes is moving together to higher ground. the state of louisiana is using federal funds to purchase land, build new homes, demolish the flood damaged homes and turn this neighborhood into wetlands. so you will knock down the houses and these, as well? >> right. >> pat forbes who administers community development block grants for disaster relief is in charge. >> it's quite clear that we're having more disasters. consequently we have to start doing things that are smarter. one of the easiest, smartest things you can do is get people out of harm's way. >> reporter: pecan acres built in the 1970s near a canal but in the last decade it's seen more frequent and intense flooding, its levee is no longer adequate. back to back floods many 2016 and 2017 drew the governor's attention and a plan was hatched to buy out the homeowners and move them her

diana olick has more in this week's cover story. >> at a sunday open house in bethesda, maryland home buyers were taking advantage of warmer weather and lower mortgage rates. >> everything is falling into place where interest rates are going down, the weather is nice, we have houses to look at and people are excited. >> reporter: things were bedroom at this five bedroom colonial but while the supply of homes is higher than last spring the market is competitive. >> seems there are fewer houses on the market that are more affordable and go quickly, within the first couple weeks of showing. >> reporter: tonya and her husband matthew want more space for their family. >> if we look towards the upper end of our price range there's more options. >> reporter: price is still an issue while the price gains in most markets are shrinking the run up over the last few years was dramatic and even falling mortgage rates are not making up for it the average rate on the 30-year fixed saw a peak just over 5% last november but then began falling slowly an went to around 4.5% in february and then took a d

for yoet nightly business report" doo" i'm diana olick i h washington.ded from morgan week's legal truce with ite apple which he says will result in stronger growth and earnings for the chipmaker, price target $95. shares rose 5.5% today to $86.72. kimberly-clark was upgraded to outperform from neutral at mcquarry. the analyst cited the company's earnings outlook and the price target $142 and that stock fell 3.5% to $125.62 and hormel was downgraded to underweight frl a. the analyst cited rising hog pric which could be difficult to pass along to consumers and the price target $36. that stock was down nearly 3% to 39.24. >>> still ahead, feeling more confident about your retirement? you'. ♪ ♪ ♪ ♪ >>> for the first time a drug distributor is facing criminal charges related to the opioid crisis. rochester drug cooperative was charged today with conspireing to distribute drugs and defrauding the federal government and two former company officials were also charged and a settlement with the company has been reached and the government will not prosecute roches

diana olick has the numbers. a. >> kelly, the numbers prove how sensitive the numbers are to interest rates pending home sales with signed contracts so people are out shopping during the month jumped a wider than expected -- mortgage rates plummeted to the lowest level in over a year. the 30-year fixed topped 5% at the start of last november then back falling and took a sharp dip in march to just over 4% price gains are shrinking. prices up 4% in february compared with a year ago according to s&p case shiller. smaller than the gain in january. in one major market san francisco prices actually went slightly negative in march year over year for the first time since 2012 that according to core logic now, there is more supply in the market overall but much of is just because houses listed already are actually sitting longer back to you. >> diana, thanks very much >> all righty. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. >>> it is the final hour of 12 i'm wilfred frost. >> and

towns diana olick is there live and joins us with more >> look, this six bedroom, nine bathroom centerl colonial is indicative of everything going bathroom center hall colonial isty thick of everything going on in the greenwich market today. been on for over a year. dropped to $4.95 and now a new agent is putting in at $4.5. it's all about changes to the tax laws that are hitting this market hard. >> it can be significant you're looking at $5 million, $6 million,s 7 million that pay $125,000 a year in taxes and now you can only write off $10,000 it impacts values but takes a while for buyers and sellers to agree on what that value is. >> sales were down 25% to a year ago. days on market, 214 and inventory up to a two-year supply for homes for sale. in other words -- >> it's a great buy right now. my buyers are getting awesome deals. i had a buyer who bought a house for $6.6 million that was on for $8.25 million. i had a buyer who bought a house for $750,000 that was originally on for $900,000. you get a deal in every price range right now. >> of course, not a great time to be a seller

diana olick. >>> time now for "trading nation" with boeing said to report before the bell tomorrow in the first earnings bell 737 max grounding with the stock in march what should investors expect fairfield strategies and then mark peppers from strategic wealth partners. what do you think of the chart >> it's a long-term uptrend for sure but more recently, some consolidation with the uptrend with the rising 200 day moving average. i think with boeing, into earnings, we really need to be watching in support of that 200 day moving average and initial and minor resistance at the 50 day moving average were a technical catalyst above the 50 day moving average is positive. >> what number, sorry? >> i believe, i actually don't know >> not meant to be a pop quiz. traders know thanks how do you think boeing's position >> we invest in companies with a good strong growth story that's reasonably price and boeing definitely fits the criteria of a long-term play but all eyes on the cash burn flow associated with the 737 max and what i think is important for investors to understand is this is just a

diana olick as well.ou both it's kind of a little bit of back to the future when you read about this and i like the quote in particular that said, it feels like 2006 but without the fake high at the end of the rainbow. is there something more sustainable about living two hour drive away from work? >> you should be conceptabskept. people getting these mortgages with no, we see millennials wanting to buy a home and homes just aren't affordable in the city anymore >> there's been an affordability crisis we've talked about that quite a bit. in this case, we're talking about folks who have a two-hour drive to get to their jobs say, it's still worth it because they value the homeownership is there simply not the supply there's demand for housing people want that the economy is now in a place where they're aging into it and so forth is there just a supply problem and what are the builders doing? >> we've really seen decades where, sorry, almost a decade where for a variety of reasons, builders not able to build

this is a good number, wu still only a little more than half diana olick, how do you see this numberide, don't you think? >> it is a nice pop to the upside here is the number i'm putting on it, mortgage rates. ceo mentioned it in the call this morning steady returning to the market, buyers after the slowdown in the second half of last year when mortgage rates spiked. this is all about lower mortgage rates going into the beginning of this year and the big drop in rates we saw in march. the question is, as rates start to pop up a little bit now going forward, is that going to affect the buyers the good news is the sale price, $302,700 was considerably lower than march of last year. people are buying the lower end homes and perhaps the home builders are giving incentives, lowering prices a little bit or getting more low-priced sly out there. a good sign going forward. back to you guys. >> diana, thank you very much. >>> a lot of earnings to get to this morning it's been definitely the busiest day of earnings season so far. procter & gamble, lockheed, utx and verizon raising their guidan

we'll keep our eye on it diana olick. >>> quick programming note here as we go to break.an interview with chipotle's ceo brian nicole. chipotle reporting results after the bell today the stock up more than 60% so far this year. we'll be right back. dow's just about unchanged this is loma linda, a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges. you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confid

. >> i'll go to the expert, diana olick on pending home sales. >> jumped a wider-than-expected 3.8% inpared with february this index from the national association of realtors measures signed contracts during the month, not closings. march we saw the big drop in mortgage rates, down from 4.5% to around 4% the biggest one-month drop in over ten years that's a reaction to that drop sales still 1.2% lower compared with march of last year. that's the 15th straight month of annual declines realtor chief economist saying the numbers have been exceptionally fluid lately we have seen the mortgage rates pop back up again since the lows in march bru not nearly as high as they were back in november of last year. the strongest sales were out west, up 8.7%, still lower than a year ago also, we did see home prices on the s&p case-shiller price home index shrink from 4.2% in the previous month those are annual home price gains. prices are getting lower the mortgage rates are getting lower, but again,pending home sales taking a nice jump in march. back to you guys >> diana, thank you. our roadmap pour

we'll go to diana olick for existing homes >> existing home sales in march down 4.9% month to month toed annualized rate of 5.21 million units that's a miss, folks the street was looking for 5.3 million and february's huge jump was actually revised lower so sales are now down 5.4% year over year. that is a 13 straight month of annual sales declines. what is it all about high prices, median price, $259,400, that's the highest price for march ever recorded. so it is up 3.8% year over year, own though we're seeing inventory rise, 1.68 million homes for sale, that's up 2.4% to a 3.9 month supply. this is a tale of two markets. we're seeing home sales decline because there is nothing for sale, we're also seeing home sales decline measurably down 11% on the very high end, that's the million dollar plus range, also down 6% above $750,000. that as you were talking about, realtors are saying is all about the change in tax deductions, the salt that we're seeinging in high price market like new york and california, the biggest drop in sales was out west and sales in california way down, bringing

town are languishing on the market and it could be a troubling sign for other high-end locations diana olick joins us in greenwich, connecticut with that story. hi, diana. >> reporter: hi, wilf. look, if you're looking for a bargain, try ginnwich. when do you ever hear that this home on one of the grandest streets has been sitting on the market for over a year its price now cut by over a million dollars. so for $4.5 million you get six bedrooms, nine bathrooms, a pool, a chef's kitchen, two flat acres. but that price comes at a price. thanks to the new cap on state and local tax deductions >> it can be significant you're looking at five, six, seven million-dollar properties that pay 100,000 to 125,000 a year in taxes and now you can only write off $10,000 what that does is impact value but it takes a while for buyers and sellers to agree on what that value is. >> greenwich sales in q1 of this year were down 25% compared to a year ago the median price down 17% to just over $2 million days on market, 214. and inventory is up to a two-year supply of homes for sale so it is a buyer's market. and