economy is going for better or worse and they're not ready to put that into the numbers yet. >> diana olick with lennar's results. the stock is down just slightly. it's up about 40% since the march lows, b.k. i don't know where you stand on home builders but diana said they may not reinstating or reasserting full-year guidance because they don't know what the economy will look like in the back half. >> right, right. so this is kinds of that uncertainty out there. why would you put yourself out there if you have this look at what's going on. anecdotally, what we have heard, what diana talked about is this moving from the cities, from apartments, getting away from dense living conditions out into the suburbs. you've heard it about the tri-state area in new york, heard it throughout the country that people are getting out of the city, buying homes outside, and sometimes they're not necessarily thinking about commuting back in to major cities and so they're going to stay there for a while. so if that trend continues, and you have kind of the housing, i don't want to say shortage but limited sup

sara. >> diana olick diana, thank you this has been such a strong run for this group, josh is it tooost of the names -- take the itb, let's take the ten biggest names in the group, most of them are not back above the february highs. interest rates have plummeted, so mortgage rates people are locking in are much lower. so if you look at evaluation, let's take lennar, for example, 11 times next year's earnings, not much of a dividend you're going to get cyclical growth that may outpace the growth you're getting in terms of gdp home builder should do well regardless of how much the economy recovers there are some secular things happening there. the most common age temperature in the united states is 29 years old. we're getting into another phase of, another peak of household formation. >> we are losing josh's connection there we'll try and fix that just to round it off on the housing names, should the low rates and what it does to mortgages be outweighing the unemployment rate? >> i wouldn't say outweighing, but basically the pool of potential buyers, as it's relevant to the home builde

showing improvement, and to see exactly where most of this growth occurred, let's head east and ask diana olickrter: rick, this is a huge beat for new home sales in may and quite frankly, i thought the expectations were a little low, looking for up 1.9% we got much higher than that, up 12.7% year over year in may and that's after we saw that huge jump in home builder sentiment in june so you had to see this coming remember, these numbers are based on signed contracts during the month, not closings, so people out shopping during may, just as things might have been starting to open up in some states or people were getting more used to the virtual tours, a lot of the builders saying they got a lot of sales from people online who never walked into their models. you did see a big jump in price up to $317,900 this may be a mixed shift but something interesting in the data is there was a big jump in the number of homes sold that were not yet even started. now, we saw housing starts much weaker than expected in may and that was probably because the builders were worried, are people really coming back?

been one big beneficiary with names like rh, william and sonoma and home depot up double digits diana olick at the remodelling trend and trade. diana? >> yeah, sarah the four out of five homeowners are considering changes to the homes and most plan to do it after the pandemic that according to a survey now as we cook at home more, kitchen remodels top the wish list and outdoor spaces. home office has moved quickly to the top of the list for buyers >> home is now where the home office is. but not everyone has the space or the money for an addition and that is benefiting companies offering this alternative. the backyard tiny house. >> it's staggering our sales are -- they're really through the roof and a lot of people just needing that home office space has been very popular >> sales at colorado based studio shed doubled in april and equal group willed in may. people are using the most popular 240 square foot model for school rooms, home gyms and, of course, home offices. >> i started to really just kind of psychologicallywant an office not in the guest room but outside of the house even if i

readout, national association of home builders, housing market index and for that, we head east, diana olickbuilder sentiment jumped much larger than expected at 21 points in june to 58, that's the largest one-month increase ever on the national association of home builders wells fargo index. any reading above 50 indicates a positive market, so we are back to positive. in april, the index plunged a record 42 points to 30 now, builders are pointing to record low mortgage rates, very low supply of existing homes for sale and a flight from densely populated urban areas out to the burbs and the back yards of the index's three components, current sales conditions jumped 21 points to 63, sales expectations in the next six months rose 22 points to 68. buyer traffic more than doubled from may to june from 22 to 43 this last component was surprising, given how many builders report more online inquiries and virtual tours during the pandemic, but that's why it worked out. regionally builder demand improved the most in the northeast but was highest in the west sara >> diana olick, thank you. >>> another

neighborhood and they're like give me a listing, i will sell it in a hot minute >> thanks very much, diana olick. the next guest says this hot housing market will likely cool off by the end of the year mark, it go's good to see you why the caution in. >> i think the credit problems are coming the federal government has put forward a lot of different policies to forebear for mortgage holders that might be having a problem making mortgage payments because of the covid crisis those programs are going to come to an end later this year as we move into next and it's very likely we'll still have high unemployment the confluence of high unemployment and end of the forbearance means more defaults and foreclosures and foreclosure sales and that will put more weakness into the market there are some very solid underpinnings. it's just going to cool off later this year. >> i've been watching prices but we're getting to a point at which affordability is major, major issue. i don't know how people are supposed to break into the market without much relaxed lending standards. we want to stay on the right side of

home buyers rushed back into the market in may and that resulted in record home sales, diana olick is here and has more on these stunning numbers for us. >> yeah, kelly, we expected a jump but nothing like this talk about your v-shaped recovery pending home sales which are measured by signed contracts on existing homes jumped 44% in may compared with april. still down 5% from a year ago but that's the biggest jump in the realtor survey history going back about 20 years. sales were up across the nation, but the strongest monthly jumps were in the northeast and west the northeast, however, still much weaker than a year ago while the west is nearly flat. buyers were helped by falling mortgage rates, which are hovering around record lows, but there are some red flags some say this may be pent-up demand from march and april when sales plummeted. and if the recent spike of covid cases causes shutdowns again, that could hurt the housing market as well. >> 44% increase. not a number you wake up to every day. diana, thanks very much. >>> coming up, iconic brands continue pulling ad dollars fro

want to get over to diana olick who joins us with more on that diana, good morning. >> reporter: goodhas fallen. as of june 16th, 4.6 million homeowners were in forbearance plans allowing them to delay their monthly payments for three months this represents 8.7% down from 8.8. together the loans represent more than $1 trillion worth of unpaid principal the numbers are down by 57,000 from last week and by 158,000 from the peak week near the end of may broken down by loan type, 6.8 backed by fan anfannie and frede loans not backed by government agencies, held by banks or private label, they seem to be more trouble those total forbearances actually rose last week by 6,000. nonagency loans are held by borrowers who are self-employed. they may be struggling more financially from the economic shutdown andrew >> thanks, diana question for you given the number of forbearances that are coming down, has lending loosened up as a result of all of this >> well, it's definitely loosened up slightly from april when the forbearance plans first went into place and there was a lot of confusion of what

diana olick joins us with more good morning, diana. >> reporter: good morning, joe something slightly promising the number of borrowers in coronavirus mortgage relief programs dropped last week but we're still not out of the woods yet and far from it. after a steep rise in april and a flattening towards the end of may, the number of borrowers in both government and private label mortgage forbearance programs fell by 34,000 last week that is according to black knight, which is a mortgage technology data provider this is the first drop since the start of the pandemic. now there are still 4.73 million loans in forbearance representing nearly 9% of all active mortgages and just over $1 trillion worth of unpaid principle. now the vast majority are government backed, that's fannie, freddie, fha and va. the drop was in the loans. that was partially offset by an increase in forbearance by bank health and private label while the decline in those delaying is promising, there was one big red flag and that is that in april nearly half of all borrowers who went into forbearance ended up making the

economy and it's bad news for mortgage rates diana olick here with that story. diana? that's because they follow bond yields take a look at the 30-year fixed riding from a record low and then spiking today according to mortgage news daily. low rates have helped a big spike in demand for mortgages from homebuyers up 18% annually last week. mortgage lenders have struggled to meet that demand and big names like quicken, loan depot and united wholesale mortgage, all adding thousands of jobs i spoke to j.p. morgan chase and wells fargo and they also said they are hiring. this rate could be a new breakout higher and given the volatility and the mark, it is still possible that rates could turn back down again back to you guys. >> diane a thank you very much for that >> sara, able to share a fun photo there, as well by j.p. morgan this is a photo of jamie dimon's first public outing with employees since his heart surgery and since covid. apparently, this is his local branch outside of new york and great to see and hear that his recovery is going well i have to say with those m

diana olick has the numbers out. >> really nice beat for lennar $517.4 million that is $1.65 a share.illion. now chairman stewart miller said that business rebounded significantly in may new orders were down 10% year over year. but deliveries ended the year flat ended the quarter flat year over year we resumed starts and land spend to match the improving market conditions and this rebound has continued into the first two weeks of june. they're seeing strength across all markets and all regions. they're saying that they're seeing a lot of people move from rentals and densely populated areas to purchase homes taking advantage of record low mortgage rates and they're also reinstituting guidance saying that for 2020, they expect us to see between 50,500 and 51,000 new homes for all of 2020. a really nice beat for miami based lennar back to you. >> not moving much after hours i guess a lot is factored in there is a lot of optimism going n. >> absolutely. they were expected just because we heard so much in the market about the builders doing so well in may and june, that this was probably p

big decline in deals and prices when we reopen toward the end of the month and when you talk to diana olickwe see of the rest of the country, we see a fairly strong housing market nationwide. so going into this the setup is not good for new york city, but we'll have to see once they reopen in june how long it goes and how deep it goes >> robert, i guess a double whammy for new york city and manhattan in particular with the work from home trend is the taxes. i mean, even less reason to stay in the center of a city if you're able to work from home, not just because of the setup of having a yard versus not, but the taxes you have to pay on top just by residing there >> yeah. it is so expensive, wilf and also a good point because this will all cascade down if we start to see property taxes which are the biggest source of revenue. $30 billion a year collected in property taxes if you start to see that decline you will see a cut in hospitals, and schools and the subway systems and police and firefighters that could make new york city even less attractive and more expensive which could sort of per

. >> diana olick, thank you. i'm just happy to get a walk in every day. cnbc update. >> hi, sara. and here is your cnbc update at this hour. let's start in atlanta the public viewing of rayshard brooks' body has begun rhode island is taking providence plantations out of the name at least on some documents governor aproferriproving the me moments ago. it is part of broader efforts to reduce systemic racism it would require a constitutional amendment and she says a referendum starting that process, well that, should be on the ballot this november >>> and finally, joel shoemaker died he is known for "st. elmo's fire" which brought the brat pack to the silver screen, he directed "lost boys" and the movie version of "phantom of the opera. he was 80 years old. and that is our cnbc update for this hour. sara, back to you. >> thank you see you next hour. still ahead, from pantry loading to an e-commerce surge there are been a number of opportunities for the grocery industry we're going to talk to the former ceo of whole foods about winners and losers amid the cha

. >>> breaking news on the housing market diana olick joins us with the numbers. >> reporter: good morningpromising. the number of borrowers in coronavirus related mortgage relief programs fell for the second straight week as cities began to reopen and some americans went back to work. there are now 4.66 million borrowers though in government or private sector forbearance programs that represents 8.8% of all active mortgages all according to black knight, a mortgage data provid provider these programs allow borrowers to delay their monthly payments for at least three months and as much as a year the numbers are down by 77,000 and down by 112,000 since the peak in may. loans backed by fannie mae and freddie mac showed volume. while borrowers can delay their payments under the programs, mortgage servicers still have to advance the payments to bond holders for a maximum of four months and at today's levels, servicers will need to pay $8.8 billion in advances over that four-month period. back to you guys >> okay. diane, thank you great to see you this morning. have a great weekend >>> meantime

. >>> home builder lennar with diana olick. >> shares of lennar are better than expected quarterly earningsack in may and has tipped to improve this morning joining me now is stuart miller, former ceo of lennar thanks so much for being here. >> good morning, diana. >> reporter: good morning. now that was a quick turn around were you surprised at buyers coming back so quickly in may? do you think it will hold into the fall or was it a temporary bounce from all of that pent-up spring demand? >> well, it was a very quick turn around. in fact, we saw as the economy shut down, we saw real stall from mid march through the end of april but beginning really in the middle of april it accelerated, momentum built as we got to the end of may we saw that our sales, not just our closings but our sales had really normalized. even as we've gone into june, into june we're continuing to see that strength. now as we look around the corner, there's no question that the economy is still -- it's still looking to get back on track and we're going to have to see what low unemployment does and whether it's sustaina

1.8% home builder stocks significantly underperforming the market diane olick has the details after they had been so strong, diana of it builder stocks reacting to a couple of things, first down yesterday despite a report new home sales in may really outperformed but there was a big drop in supplies so builders are going to have trouble meeting the demand going forward. then we got mortgage applications after five straight weeks of gains they fell. 18% higher than a year ago but any sign of a turn in demand will worry the market. builder stocks have been on a tear since march and some may consider them a bit overheated we're about to get a look at quarterly results from kb home in the next hour so see what the comments are from the crowe there. sara >> thank you josh, this had been a bright spot housing demands, mortgage applications, was that the peak or keep buying those names >> i would say it's an opportunity but i don't know you'll be rewarded right away. here is what i want you to think about, we now have a moving average increasing in the united states the places it's taking place are some of the hottest,