diana olick is here to explain.d tonight. ♪ >> cold is hot if you're in the warehouse business, that is. cold storage warehouses and distribution centers are suddenly in high demand. >> it is the pea pod and it is theamazon. >> the new food delery services driving it literally from the warehouse to your home and small now, but growing quickly. >> and it's 2% or 3% on goods and groceries are bought online and wexpect the space could explode as much as 13% over the next five years because of thet peneation of the internet. >> it is also the farmo table and organic trend. fewer preservatives in food m requiree cold storage. >> change insu conmer prefer renses is that they want to eat cere fruits and vegetables and less ped foods. so when you have fruits and vegetables they need to be fla frozen and transported throughout the country to the end user and that is definitely taking anti in demand for this space. while mainstream warehouse nstruct isgrowing, there is still a limited supply of cold storage real estate that m

for "nightly business report," i'm diana olick in washington. >>> to the markets now. as we mentioned earlier, it was a tug of war between rate talks, tech worries. the nasdaq was the big draw. the dow eked out a 4 point gain but the tech names took the nasdaq down by m e than1.5% or 120 points. the s&p wasutown a 7. >>> manufacturing activity in may fell to its lowest level in 22 years. the closely watched institute for supply management's reading fell to 52.1, its lowest since october of 2016. and while anyth0g above shows expansion, the ism chairman said the may number shows manufacturing is earuggling in the face of global demand. >>> on the flip side, new vehicle sales in the u.s. for major automakers, at least those that still report monthly sales, th ticked higher in may thanks to a stronger economy and an optimistic fueling demand. it's the first positive month, by the way, of 2019. >>> up nexboeing's ceo weighs in on his company's latest issue with i 737 aircraft. >>> shares of boeing were under pressure again today after the a said that there is a new problem

buyers are also sgll fac a tight and pricey fousing market nightly business report, i'm diana olick inngton. >> let's turno susan to talk about the housing market and its react to interest rates. she'a professorf real estate and finance at the university of pennsylvania's wharton school of business. welcome back, susan. so nice to see you again. >> pleasure to be here. thank you. >> what doou make of the erratic nature of the housing market right now and its ntaction toest rates? i mean, yes, diana pointed out the surge in refi, but interest rates have been low for a long time and we haven't seen that kind of action. >> well, this is a price point in terms of interest rates and it's dramatic drop to 4.1%. we're getting to historic lows and both refi opportunity is out there and theni oppor to buy now. lock into the mortgages at this 4.1 and it'sni a scant decline and the decline is over time and compared tor a yo it's 100 basis points. >> is this the reason the fed should cut interest rates at some point this summer to try to revive what has been a housing market thisprg? >> well, yeah

let's get diana olick from washington with the details. diana? >> reporter: it's getting harder to find cheap distressed homes you can rehab and that's where uber drivers come in david is a part-time uber driver in dc. and part of the time he's driving, he's scouting homes for an investor. >> on the porch, you have somewhat of a tree, a limb that may have fallen or something growing up there. >> this says to you, this could be an opportunity. >> this is an opportunity. >> reporter: an opportunity for daniel, the investor who hired him to scout properties. he's been flipping homes for a decade has never seen the market this tough. >> as the prices are high as they are now, the margins on our flips are pretty slim. >> reporter: nationwide, saw an average return on their investment of 39% in the first quarter of this year down from 42.5% in the previous quarter and nearly 49% a year ago. the lowest return in 8 years according to adam data solutions. the number of flips are down 8% annually, so the stakes are up precisely why dejakamo has 150 drivers

diana olick joining us now with a look at what realtors are hoping is a true story, diana. >> yeah, absolutelytty unremarkable spring, but the housing market just got a potential boost in the form of those lower mortgage rates. rates took another dive on friday 3.86 on the 30 year fix. that rate up around 4.25 throughout much of the spring market if it stays here or even lower, that gives buyers a lot more purchasing power of course, the flip side of that is the reason rates are so low to begin with because of concern in the economy the trade war with china, and then mexico last week, the weak jobs report on friday didn't help either and the concerns made people nervous about making their single largest investment, that is, a house the supply of homes for sale is rising and consumer sentiment in housing is also improving thanks to lower mortgage rates according to a fanny mae survey. the people said it's a good time to buy rose in may compared with april, but slightly lower compared to a year ago and a lot lower than the last several years. brian? >> it's a good question, diana yields and mort

were putting more money into single family rentals, but now they want a whole new type of home diana olick.c. with that story. >> during the foreclosure crisis, investors scooped up millions of distressed homes and turned them into lucrative rentals. foreclosures are mostly gone and the regular market is very pricey investors are turning to builders in a big way. and the builders are responding. today, tampa-based erc home builders is offering investors private shares in a so-called soft ipo hoping to raise $100 million to build more than a thousand new rental homes across florida. the homes will be in contiguous tracks and they'll be sold in bulk to big investors. >> we think there's a consumer rental demand that is driving these institutions to want much greater levels of inventory of this product and we feel that they are learning or have learned that new inventory is a much safer and more official rental product. >> the build to rent business is exploding. several companies including toll brothers and lennar are dipping into it. 37,000 homes were built to rent in 2017. that grew to 43,

warehouses but a small subset sector really heating up even though you might not describe it that way diana olickplain dia diana? >> reporter: cold is super hot, if you're in the cold storage warehouse business i'm standing in front of a giant freezer unit it's because of your amazon press, your pea pod by giant the new food delivery service is driving it literally from the warehouse to your home it's small now but growing quickly. >> about 2% or 3% of all goods on groceries bought online and we expect this space could explode to 13% over the next 5 years because of the penetration of the internet. >> reporter: it's also the farm to table and organic trends. fewer preservatives and food requirement more cold storage but still a very limited supply of cold storage real estate. which makes it that much more valuable now, americold the first in the u.s. today since going public last year, its stock is well on fire and that's because as the grocery segment grows, the produce is poised to profit and investors are just hot for cold. kelly? >> is that the only one, diana >> this is the only publicly tra

diana olick explains. >> david a manzur is a part-time uber drir in d.c., and part of the time de'srivingng homes for an investor. >> you have somewhat of tree or a limb that may have fallen or something growi uphere. >> this could be an opportunity. >> an opportunity for daniel digiacomo, an investor who him to scout properties. he's been scouting homes for a decade andas never seen the market this tough. >> with the prices as high as they are now the margins on our flips are pretty slim. >> flippers saw an average return on theirt investm of 39% if the first quarter of this year down from e42.5% in previous quarter and nearly 49% a year ago, the lowest return i eight yea according to adam data solutions. the number of flips are down 8% annually so the stakes are up. precisely why digiacomo has 150 drivers scouring the streets for opportunities. >> the best deals are always the al that we put our eyes on and i can't put miles on every single deal and uber drivers are out there looking at different neighborhoods. >> digiacomo used to go to options and there are too man bidders there, driv

chris bremer and diana olick scl thank you. >> after the break it's time for today's tasting menu amazon'sedom, and a wounded warrior. "power lunch" returns in two ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >>> amazon has come under fire over an analysis that showed it paid zero federal income taxes last year despite earning nearly $11 billion. the company is pushing back against those numbers tweeting that it paid 2.6 billion in corporate taxes since 2016 amazon said, "we pay every penny we owe congress designs the laws. assuming biden's complaint is with the tax code, not amazon. here's the reality there is no way to tell for sure amazon has paid in taxes, much less federal income tax. but it is

diana olick explains. >> mortgage ratn are d dramatically, but apparently not low enough to impress today'srseho are still up against very high prices. pplication age volume increased 1.5% last week from the previous week according to the mortgage bankers association, but the gains were driven by loan financing and they fell to 4.23% from 4.33% and that belongs with a 20% down payment and with that said, volume rose 6% and was nearly 33% higher from a year ago when interest rates were significantly higher. refinances are stockily rate sensitive and the dro in rates added 2 million more borrowe to the pool of those that can refi according to black night. mortgagepplications fell2% for the week and were barely .5% higher than the same one one year ago. so they are flat. >> inventory,hat's not necessarily a bad thing and hwe've some lawyers and they do hospital market. >> the reasons beloan trade war th the weakening are economy and they don't wano e trouble in the economy when they're about to make their biggest investment and that means buying a home. for nightly business report, i'o dianack i

for nr"nightly business report" i'm diana olick in washington. >>> caterpillar was downgraded.ys weak first half economic data may lead to slower second demand for the farm equipment. despite the downgrade the stock rose a fraction to 133.90. cash vast was downgraded. the analyst cites the company's challenges in europe. carnival reported earnings yesterday. the price target is $55. the shares fell more tn 4% to $46.63. labcorp was uraded to buy from hold. deutsche bank, cites increasing optimism over t research business. the stock rose more than 1.5% to 170.80. >>> wynn resorts has made a big bet on massachusetts, and in return a massachusetts townas made big bet on wynn. they will both soon find out if their hard-fought wagers have paid off. contessa brewer is in everett, ma ma.achusetts for us tonig >>> boston has never seen anything like it. the $2.6 billio encore boston harbor opens this weekend. the thing is, it is not actually in boston. >> it is almost like a>> rebirt he five-star casino resort is opening this weekend in gritty, hard-working everett. the mayor worked ha

for nightly business report, i'm diana olick in washington. >> time that take a look at some of today'spgrades and downgrades. we begin with facebook that was downgraded, with moffity and nathanson. the analyst cited the cornd business potential for growth and the price target now $210, that stock rose more than 1.5% to 178.10. jetblue was upgraded to buy f neutral at citi. the analyst cited positive pricing trends right now and the price target $26. that stock was up 4% today to $19.09. >>> dollar tree was upgraded to overweight from neutral at j.p. morgan. the analyst cites the potential for net income growth and the re generation for cash flow. thege price tis $122. the stock gained to 106.63. wellsr fat low was downgraded to underweight from neutral. the analyst cites the deteriorating outlook for brats and the price2 target was and the stock fell a fraction to $46.26. >> still ahead, stocks that soared in a short period of time may look like something you want to own, but should you? ♪ ♪ >> there was a changing of guard at bestrr buy. corey took over as ceo and she has big shoes to

diana olick has that story. >> spring is usually the hottest season for the nion's homebuilders, but that was not the case this year. there are, you ever, signs of summer strength. mortgage applications to purchase a newly built home jumped 20% annually in may according to the mortgage bankers association. that coincided with falling mortgage rates throughout the month and rates continue to fall in junend are now at the lowest level in two years. these both signal strength ahead. but all real estate is local and some are will fare better than others. john burns' real estate break out t public builders which are poised to do best this summer. kaybee home's market conditions are because they're concentrated in the southwest, where the market is outperforming and it buis in the northeast because it's bouncing back a year ago. d.r. hortoces cration in texas and entry level product also puts it i a good position and lennar's footprint and it's heavy in florida and the southeast. on the other hand, tripoint and william lns home are slowing permits because a third of their exposure is in so

for "nightly business report", i'm diana olick in washington. >>> t the economy now.he number of americans filing for unemployment benefits is stillringing to its lowest levels in decades. initial jobless claims fell b 6,000 last week. that was a bigger drop than expected. and the number of peopl already collecting unemployment benefits, known as continuing claims, that's near the lowest level since the early 1970s. >>> and the gauge of manufacturing activy in the philadelphia area fell this month to its lowest level since bruary. the report cites a decline in prices for the drop as well as a slide in new orders and shipments. >>> time to take a look at some of today's upgrades and downgrades. we begin with shares of hshey tonight. they were downgraded to eutral.ight from the analyst cited the stock's valuation and its histghically premium compared to peers. price target, $125, that stock fell a fraction to 137.64. apple was ini with a hold rating in new coverage of deutscheank. th cited a potential low in thenticipated introduction of 5g phones next year. that stock

we are dom, bob pisani, rick santelli and diana olick, and meg tirrell. and leslie picker has more on why this time should be different for allergan dom, let's start with you. >> so jerome powell speaking today saying that the federal reserve will act as appropriate to sustain the economic expansion. he says uncertainty over trade and global growth has increased, but he says whether the uncertainties will continue adding that policy should not overreact to any one today i ta data point and hinting at the potential for an insurance rate cut. >> i think in a world of lower interest rates, research seems to show that it is better to act pre-emgt differen preemptively >> and this is after james bullard said that now seems like a good time for an insurance cut, but that 50 basis point cut may be over done but he does still see 50 total basis points of cuts by the end of the year. >> and let's get to bob pisani on the floor >> and bottom line is the market did not get any kind of assurance that there will be any 50 basis rate cut next month a little bit of a hi

. >> diana, thanks, thank diana olick. >> all stocks have been up to 20% year to date yesterday, lenarders were basically in line, so i think that a lot of this stuff is sort of, i don't want to say kitchen sink but when the ceo says he's blaming tariffs on $500 per home, i think that's a little bit granular for the industry. i don't know what he's trying to point at but lumber prices have come in. that was a huge head wind. when you look at kbh, it sold off 7% ahead of this earnings report i'm staying in it. i have added to them. >> who else. >> if you think about the xhb, the outperformed the s&p by 16%, the move we have had in interest rates and the dynamic, which despite reasonable consumer confidence, and reasonable, you know, numbers on the employment side, do these trends get better in the short run we could see rates go to 175 in the ten-year yesterday's home sales numbers tells you that actually the short-term trend is running into head winds. >> the place i would be concerned is home depot. that is the company that will be hit the most or will have to raise prices if we have

family rental market now they want brand-new homes and builders are shifting gears to cater to them diana olickn washington with more >> a florida builder is in manhattan shopping his business to investors offering private shares in a soft ipo hoping to raise $100 million to build more than 1,000 new rental homes across florida. the homes will be sold in bulk to big investors >> these homes will be sold the day they're complete and that is pretty nice for a development company like ours. >> the build to rent business is exploding. several companies including big names like toll brothers and lennar are dipping into it no repairs, multi-year warranties and the rents for single family are growing fast 4.5% annually now compared that to 3% year growth for multi-family apartments and much less turn over in single family and it is much less volatile than the new homes sales market. kelly? >> in the florida case that you mentioned, does that mean typical buyers, regular buyers who wanted a house like that are going to have to wait. i guess, i'm saying, are they crowding out demand for those who want t

for more, let me bring in zillow director skyler olsen and our own diana olick. we have some pretty disappointing housing numbers this morning >> we got some surprisingly low new home sales for the month of may. we were expecting tobounce up because of the drop in mortgage rates but we saw buyers pull back and likely due to the affordability crisis prices just too high, even with the lower mortgage rates and the problem is, as you said, the builders are not building enough and specifically not enough on the lower, cheaper end of the market >> skyler, harvard saying there is going to be a half a million sho sho shortfall per year they say we need 1.5 million how is that playing out? >> yeah, i mean, over the long term what it means is that we'll continue on this steady progression towards housing taking up a larger and larger share of your income housing over the long term will probably continue to grow faster than income and that down payment will continue to be a greater and greater challenge because, again, you know, like these markets over the long term, it's

diana olick looks at that angle. hi, di >> hi, ty.n more so, mortgage rates have already come down more than a quarter percentage point in just the past two weeks. that may not sound like a lot but it can make a big difference for homeowners and home buyers alike. the average rate on the 30-year fixed is now solidly in the 3% range. around 3.9%. but it was up over 5% last fall and in the mid 4s through much of last -- much of the all-important spring housing market there are now about 5.9 million borrowers who could drop their rates by at least 75 basis points through a refinance that is an increase of 2 million in just the past month according to black knight, a mortgage software analytics company now, that is the largest population eligible candidates in nearly three years and represents an aggregate $1.6 billion in potential monthly savings per borrower about $271 per month that's a fair amount for home buyers any savings on that monthly payment is crucial given today's high prices. also lower rates help more buyers not only just a

diana olick for us today that does it for "the exchange." i'll join tyler for "power lunch" which begins right now. >>> kelly, see you in just a moment welcome to "power lunch. i'm tyler mathisen new at 2:00 today, rally on. stocks surging we haven't been able to say that for quite some time on optimistic comments from the fed and easing trade tensions. we will break it all down for you today. >>> retail stocks on pace for their best day in five months but a major warning from one key name about the impact of the trade war and big tech, rebounding from yesterday's big sell-off regulation risks overdone? "power lunch" starts right now as i mentioned, there is a rally right now up 461 points on the dow. let's get a check on the rally this hour. with stocks near their session highs. nearly 2 percentage points higher major averages having their second best day right now of 2019 so far. the s&p breaking above 200 day moving average and nasdaq out of correction territory with today's big better than 2% gain. the move higher in technology fueling t

. >> and it turns out one of the hottest areas of the real estate sector involves the cold diana olicks right, sara. it's the new niche sector in warehouses and one stock is eating up on it we will name names coming up i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪ ♪ in big ways and in small, bank of america is here to help you get things done. what would you like the power to do?® ♪ done >>> welcome back the dow closed higher by 512 points in percentage terms in fact the laggard of the major indices up just did 2.06% s&p up 2.14. nasdaq and russell up 2.6% today. >> real estate one of the best performing sectors so far this year up more than 16%. did sit out today's rally though let's bring in sandeep mathrani, ceo of brookfield properties retail group welcome, sandeep nice to see you.

of all, the home front falling rates they create new opportunities into the housing market and diana olickreporter: mortgage rates loosely follow the yield on the ten year treasury. they have taken a deep dive. the average rate on the 30 year fixed over 5% last november, now solidly below 4% that's already juicing refinance demand, up 97% this week compared with a year ago according to the mortgage bankers association. but there is still room to grow. the rate drop over the past month added an additional 3 million borrowers to the pool of those that could benefit from a refinance, according to black night. 7 million people could now benefit. as for buyers, no question lower rates helped make the math work on a monthly payment the drop from 5% to 4% on the 30 year saves the borrower about 200 bucks a month on a $300,000 mortgage you have to consider the reason rates are so low is because of economic uncertainty and concerns about the economy and that makes buyers slightly skiddish because for most a home is the single largest investment >> more about this and what may be the single biggest

diana olick has the latest numbers. >> it's simple if rates fall, buyers can afford more that means they can also bid higher this morning, we got the latest read from s&p schiller, which is the most watched home price report it till showed the home price gains are shrinking annually prices up 3.5% annually in april versus 3.7% in march, but this report is pretty backward looking. we have newer reports from zillow, the realtors, and core logic showing home price gains getting bigger again for the first time in about two years. even the case schiller report, when you break down the gains by large cities, a growing number of cities are seeing the price gains increase now as for the builders, we saw the median price of a new home sold in may drop almost 3%. a lot is the mixed shift, meaning more lower priced homes are selling than the luxury homes. builders are pivoting to the lower end now, but that hits their margins, given higher cost for labor. >> all right, thank you. the nation's second largest home builder is meanwhile on track for its worst day since 2018 lennar tumbling after starti

momentum going i'm joined now by matthew graham chief operating officer at mortgage news daily and diana olickhow much of a boost in terms of mortgages? >> it has taken us up to the best levels in quite a long time, which was relatively predictable based on the last time the rates were this low so, it's not nearly enough to get us back up to the refinancing surges that we've seen in the past in 2016 and then the huge numbers in 2011 through 2013 but it's definitely a welcome relief for a mortgage market that was pretty borderline depressed heading into the end of 2018. >> i remember that interview do you think what we've seen in just the last couple weeks and this last week especially is going to be a one-time boost or keep going if we stay down here? >> i think it's going to keep going. i mean, if you're talking about the surge in home buying demand, we did see a 10% jump in morgan applications for the week and compared to a year ago and we did see the same boost back in march when we saw mortgage rates low. at the end of last year when mortgage rates were much higher, the bottom fell out of

let's go east to diana olick >> rick, this is a huge miss on new home sales, down to 626,000. april was revised slightly higher but a couple of things to note in this. first of all, mortgage rates you can't miss this, the 30-year fixed started at 4.29%, it was down to 3.94% by the end of may. this number represents people out shopping in may, that is signed contracts, not closing. you should have seen a boost in demand we also saw supply go to a 6.4 month supply from 5.9. that means the builders have simply too much supply we're seeing existing home supply down around four months, that's an unbalanced market. now we're getting in the exact opposite direction on new homes, that means builders have too much supply going into the summer months when we're seeing demand now start to pull back. the median price of a newly built home, $308,000 in may, that's down 2.7% we saw in earnings this morning they said prices were moderating and that was stimulating demand. so we are seeing the prices come down that median price which should help, but again, didn't help in the sales. so you're

diana olick joins us from washington with all of those details. hi, diana. >> hi, wilf.tting harder to find cheap, slightly distressed home that you can flip and that's where uber drivers are coming in they help them find property, make sense since drivers cover a wide area and today's flippers need every edge they can get nationwide, flippers saw an average return on their investment of about 39%, down from 42.5% in the previous quarter and down from 49% a year ago and the lowest return in eight years according to adam data solutions the number of flips are also down 8% annually so the stakes are up precisely why daniel degiacomo has 150 drivers scouring the streets for opportunities. >> the best deals are always the deals that we put our eyes on and then i can't put miles on every single deal so uber drivers are out there looking at all kinds of different neighborhoods and putting their eyes on many houses. >> and if the deal closes the driver gets 500 bucks. not bad for moonlighting while you're working back to you guys >> that's not bad, diana, but nor is -- i know y

diana olick joins us from washington with the details. >> hi.t announced it's doubling its investment in capital partners which lends to real estate investors, many of them house flippers that takes capital to 500 million total since last year. they've completed more than $2.5 billion in investments through more than 8,000 loans in 45 states and the uk. now, these loans are attractive to kkr and big funds like it because unlike the big drop in rates we've seen this month in the regular mortgage market, investor loans can come in between 8% and 12% interest rates. they also get paid off quickly because the investors rehab and flip the homes but the flipping market is getting weaker, thanks to high home prices and short supply of distressed starter homes flip returns are down to the lowest level in eight years, and the number of flips are down 8% annually, that according to adam data back to you. >> diana, thank you very much for that >>> still ahead here on "the closing bell," a big tech breakup. senator mark warner joins us with his take on whet

enough even if i don't like the kind of yield >>> existing home sales due out tomorrow diana oli diana olickd on closing. important to note mortgage rates were significantly higher then than today the 30-year fixed was around 4.5% in march, took a momentary dive and settled just about 4.25 for all of april it is now well below 4%. we will be watching inventory, of course. the supply of homes for sale had been gaining slightly but not enough on a low end. a new report out today says investors are more active in sales than they were even during the housing crash, and that eats away at supply as well lower mortgage rates and increased competition are already having an impact on prices those big gains had been cooling but they now seem to be heating up again back to you guys >> diana, thank you. >>> in case you missed it last hour, house financial services change maxine waters joined us we asked about reports president trump is looking to demote fed chair jay powell because he is not happy with the policy. here is what she had to say about that. >> it is outrageous. it should not be done. i thin

. >>> mortgage applications out just moments ago let's get the data now from diana olick. : yeah, just a huge reaction to the big drop in mortgage rates last week total application volume surged nearly 27% for the week, up 41% annually, according to the mortgage bankers association's seasonally adjusted index, and most of that was thanks to a refi boom. the average rate on the 30-year fixed fell from 4.32% to 4.12% for loans with a 20% down payment, and that is 71 basis points lower than a year ago and the lowest level since september of 2017. refis reacted, up 47% on the week and up a striking 97% compared with the same week one year ago lenders must have been busy, for sure volume is up 63% in just the past four weeks on these falling rates. home buyers also finally saw the light. they hadn't really reacted to the rate drop the week before, but purchase applications were 10% higher for the week last week and the same from compared with a year ago. now, purchase applications might have been even higher, but there may be some pullback from buyers who are concerned about all

diana olick has the numbers. what are you seeing?ll, becky, almost like falling mortgage rates are becoming humdrum at least for home buyers. total mortgage applications increased 1.3% for the week but 40% higher from a year ago the rates have fallen in the last three weeks and the average on the 30 year fixed with conforming loan balances dropped to 4.06% from 4.14% last week. that's for loans with a 20% down payment and that is 78 basis points low they were the same week one year ago. so up 92% from a year ago. now you think everyone has refied everybody but as home values rise, more people are eligible and can benefit from the refis so they jump in. now mortgage applications to buy a home were not nearly as impressive down 1% for the week but still 9% high their an year ago. they're up against high prices and low supply of homes dropping in economic uncertainty with the trade war and people are less up for the big investment in a home back to you guys. >> all right, diana, thanks. >>> coming up, we'll talk about something totally

diana olick joins us now with a look at that sector. hi, diana. >> good morning, mike. the housing market could get a little more juice this summer, thanks to lower mortgage rates and more supply. rates took another dive on friday, ending the week at 3.86% on the 30-year fixed, that according to mortgage news daily. that rate was up around 4.25% throughout much of the spring season, so if it stays here or even lower, that gives buyers a lot more purchasing power. of course, the flip side of that is the reason rates are so low that's because of concern in the economy, the trade war with china, then last week with mexico, then the weak jobs report didn't help on friday, either, and those concerns make people nervous about making their single largest investment, that is, a house the supply of homes for sale is rising, though and while home prices are still gaining annually, those gains have been shrinking for about a year now consumer sentiment in housing is also improving, thanks to those lower mortgage rates, according to a fannie mae survey the number of people who said

. >>> mortgage applications out a short time ago let's check on the housing market with diana olick.t, but not far enough, apparently, to impress home buyers up against high home prices total mortgage application volume rose 1.5% last week from the previous week, according to the mortgage bankers association's seasonally adjusted index, but gains were driven by refinances the rate on conforming loan balances fell to 4.23% for lows with a down payment. total refi volume was nearly 33% higher than the same week one year ago when interest rates were 52 basis points higher. refis are highly rate-sensitive, and the drop in rates last week added about 2 million more borrowers to the pool of those who could benefit from a refinance. that's according to black night, which is a mortgage software and analytics company. for purchases, applications to buy a home fell 2% for the week and were barely 0.5% higher than the same week one year ago it's sky high home prices which continue to sideline buyers, especially the first-time buyers, who are a growing segment of the market. back to you guys. >>