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diana olick breaking it all down i was watching cnbc yesterday. i saw you jump in.ews years ago 5% would not seem like a lot of money, but it certainly does now, especially with record-high prices what are you hearing about the impact of this >> yeah, especially as you say because of the high prices home prices are up 20% year over year in february, and the gains keep getting bigger. you would think it would throw cold water on prices, but prices lag sales. there's still crazy demand in the housing market, but at some point, brian, you've got to believe affordability's going to kick in, right >> i guess i'm going to show you a chart. it's 30-year rates versus the average rate you know this chart like the back of your hand, diana for your viewers, it's inverse as rates go up, prices go down and vice versa because people don't buy homes based on the price. they buy homes based on the monthly cost but with rents so high, diana, i wonder, does it hold up because people have to live somewhere. >> exactly if you're paying so much for rent already, then you say, look, i co

diana olick is here with the housing data for us. diana? expecting a march but only because february sales revised much lower so suffice to say that sales are falling but prices are still on fire the median price of an existing home sold in march $373,300, an increase of march of last year and highest price since 1968 prices are strong because supply is not better. 950,000 homes for sale at the end of march a drop from the year before. what about the rising mortgage rates? the sales are based on closings and likely signed in january and february when rates rose from 3.29 to 3.9. rates then really jumped in march and april and now 5.32%. it's nearly half of what it was a year ago refis are doing 70%. applications to buy a home down 14% from a year ago. the realtors' lock box indicator, it was down 19% in march from a year ago and has to be the higher mortgage rates playing into the market. >> still home construction is rising doesn't feel like the market is falling through yet. >> reporter: the new home report of yesterday we saw the jump in

getting hit by higher rates and that is hurting the lenders, but there is one surprising growth spot diana olickhe drop in mortgage demand is not exactly unexpected given the sharp rise in mortgage rate, but the numbers are still pretty stunning total mortgage application was half of what it was. the biggest drop is in refinance demand it was down 70% from a year ago and a year ago refinance lending was the majority of the mortgage company business now it's down to barely a third. for lenders, that's a crushing blow to business so take a look at some of those names. rocket, its stock is down 38% year to date the company announced it's offering buyouts to 8% of its workforce. home depot down 36% and the company ceo told me there would be layoffs there as well as it adjusts to the workload and finance of america down a whopping 58% year to date and guild mortgage down about 38%. last month guild was downgraded by wells fargo and j.p. morgan chase. mortgage rates have risen sharply and the average year up about two full percentagepoints year to date and the expectation is that it will continue to h

or 10 years we saw a jump last week in arm applications to the highest level in three years. >> diana olick, thanks so much. >>> republicans in florida are taking aim at disney statehouse lawmakers set to vote tomorrow on stripping the company of its self-governing powers on the properties in central florida. disney is the largest private employer the move could force disney to pay hundreds of millions more in taxes each year. here's kerry sanders >> reporter: tonight florida's new fight against the house that mickey built florida senate approving legislation to eliminate disney's self-governance authority and tax breaks democrats unanimously opposed it. >> why are we putting our knee on the neck of the mouse it's ridiculous. it's nothing short of extorsion. it's nothing short of bullying >> disney and florida republicans led by governor ron desantis who pushed for the legislation after disney called for the repeal of florida's parental rights in education law where critics dubbed the don't say gay law. they banned this for children in kindergarten through third grade. >> this state is gove

numbers seem to be holding very well as well for more detail on this number, let's turn east to diana olick seeing as much of a positive sign as you might be remember, these are home sales recorded as pending sales in the month of march that's signed contracts, people out shopping for homes in mortgages, the average on the 30-year went from 3.9%, to 4.78%. that's a full percentage point higher then you see the drop in home sales. also year over year down 12.6% this is march, the beginning of the busiest season for the housing market we also saw the inventory, the supply of homes for sale up to a 6.4-month supply, continues to rise as home builders are not seeing as strong sales we did see prices increase up 21% year over year the case-shiller numbers still very strong, for existing homes, but we're seeing that pricing power appeared dr horton noted that they still do have considerable pricing power out there because of price of demand while it beat on earnings, because of higher prices, they actually missed on the number of sales. sales down 10%, new signed contracts. they also lowered guid

people and contributor to climate now new farming, technology and companies tackle the problem diana olick look at a company in the continuing series on clean startups. diana? >> agriculture production uses about a 70% of the global water. farming is now moving inside and farmers aren't what they used to be >> reporter: meet grover and phil they're autonomous robots or farmers of the future working at a 6-year-old california farm based startup. >> we grow in natural light farmhouses we want to grow closer to people in a more sustainable way. >> reporter: it is combining robotics, ai and indoor farming to transform industrial agriculture. >> we have different robots tending to the plants. checking on it scanning for issues and adjusting the nutrients. >> reporter: it is in contrast to what he calls the spray and pray approach where more chemicals create less quantity and less quality the advantage of growing indoors is anything at any time regardless of climate and climate change iron ox can vary what it grows from vegetables to fruits and berries and using hydroponics so water goes to the

diana olick with the latest. that's it for "the exchange. "power lunch" picks things up right now. >>> welcome to "power lunch. kelly will join us in a minute i'm tyler the story of the day is netflix. having one of the worst sessions ever down 62% in 2022 can you imagine that it is mass iive disappointing results. moments ago morningstar announced the awards for investing excellence one is with us saying the powerful move in yields is good news for investors kelly? >> thank you netflix is dragging down the nasdaq but the dow and the s&p higher s&p up the dow up 1% rite now the nasdaq down. netflix the latest even worse than last night down 36% $50 billion wiped from the market cap below $100 billion. yesterday the company worth $157 billion and the peak more than $300 billion just last november. just five months ago. >> 300 billion to where it is today. we'll spend time here with netflix. wall street of course reacting to the netflix implosion last evening and no one is saying buy the dip. not a soul evercore saying there's no fixing the pr

lower carbon future but given the growth in use, recycling those batteries will also be key and diana olick company with the unique plan in the series of climate startups hey, di. >> hi, ty. while several companies already do this a startup we found is doing more than recycling. they say they upcycle. >> we're capturing the metals but formulating them into new battery materials. >> reporter: massachusetts based asand elements shreds batteries and turns them into blackish sand 'removes the plastic and leeches out the impurities >> we're effectively urban mining bringing that material in and transforming it into usable material for the battery manufacturers. >> reporter: it's energy intensive to produce mining and refining the materials and while the kath identify dekrad the materials don't. >> we're able to reduce that carbon footprint 93% so we're really dramatically reducing the footprint of an ev into something that the industry needs to do. >> reporter: as for competition there are other recyclers in the market but - >> nobody goes to the high value material like ascend materials that's

not worried about the affordability with the rates the other concern and i know you spoke with diana olickently. this is a big project in a dry area, david. can you say to the people who buy in the developers you will have enough water? >> absolutely. i'm telling me employees and employees' children we will have enough water we would not do this if we didn't believe there was enough water for the next year and ten years and forever. making sure we are building smart and eco friendly this company was started by jim roush. this is part of the fabric of what we do that will not change in douglas ra ranch. >> whether it is an aquifer or capturing rain or all of the above? >> all of the above. we are sitting on top of the river basin. we have access to the central arizona project. we have gray water retention system to self use reclamation to back fill the ground water and irrigate the common areas. low flow fixtures and drip technology to reduce the amount of water we need at douglas ranch. we partnered with a market leader and global leader in smart engineering solutions. we identified over 2

diana olick brings us the story of a startupand climate change >> when we think about the biggest environmentalp there. accounting for 40% of global emissions. the race is on to lower those in single buildings and entire cities and one company is doing that virtually by creating digital twins. >> digital twins themselves are virtual representations of real things in our case, cities. >> it takes in thousands of data points about their operations and systems in order to create exact replicas of both inside and out. >> they can be used to optimize all aspects of planning, construction, and ultimately regular maintenance. >> using its so-called smart world, it can monitor the interplay of buildings, infrastructure, transportation, and people in order to lower carbon emissions >> where the problems are, which systems to use, what types of chargers to use. how to electrify a building. >> the angalysis shows building owners where their money might be best spent. they're working with amazon to decarbonize buildings in phoenix and it's working with several other cities >> our digital twin features an u

but as cnbc's real estate correspondent diana olick explains, some housing developers will build homesught or not >> reporter: on a vast swath of land in buckeye, arizona, just west of phoenix, the howard hughes corporation is developing one of the largest master planned communities in the nation, douglas ranch, flooding the desert with housing. >> there is a shortage on the ground right now of homes that are needed >> reporter: howard hughes' ceo david o'reilly claims water will not be a problem. >> every home will have low-flow fixtures, natural desert landscaping, drip irrigation and recla reclamation. >> reporter: 100,000 homes with big names like pulte, lennar, dr horton and toll brothers expected to build them and it's one of more than two dozen developments in the works around phoenix >> they're expecting the growth in this area to be a million people and there isn't the water to sustain that growth. not with groundwater. >> reporter: asu senior water research fellow kathleen ferris produced a documentary about the state's 1980 groundwater management act it requires developers t

cnbc's diana olick on the ultimatum he'll issue today. >> it is a file of shame, cataloging the emptyrhetoric is heating up, right along with the planet as the united nations released another in a series of damning reports. it argues the world needs to do more to reduce greenhouse gas emissions because as of now it is, quote, almost inevitable that the earth will surpass the critical threshold of 1.5 degrees celsius warming above preindustrial levels that limit was set by the paris agreement. beyond it, so-called tipping points of disaster become more likely already last month, the east coast of australia saw devastating flooding and an ice shelf the size of new york city fell into the ocean. last friday, the latest measure of snowpack in california was found to be barely a third of what it normally is after the driest start to the year on record and a late march heat wave the u.n. report does note that some progress has been made, especially in lowering the price of renewable energy. >> the challenge now is really to stave off the pass of that action we have the tools, we have the re

the potentially deadly fumes before they even enter the atmosphere senior climate correspondent diana olick now with the latest in her clean start series. >> it's the best vodka on planet earth. >> and says the air company's ceo, the best for planet earth because the vodka is actually made from greenhouse gas emissions. >> we work with partners that capture that carbon dioxide before it's emitted into the atmosphere and we use that in our process creating the alcohol we create. >> distilling alcohol the old fashioned way not only releases its own emissions, but it uses about 35 liters of water to make one liter of distillate. >> we're removing co2 for every bottle we're creating. >> it's invaluable but it's not cheap. air vodka, a 3-year-old startup, is a luxury brand, about $65 a bottle but at bathtub gin in lower manhattan, the vodka is getting high praise. >> once we tell them, hey, this is how it's made it's got a negative carbon footprint, all those really beautiful things is what happens to make them want it even more then they go looking for it. >> the company is now going beyond vod

diana olick, thank you. >>> here are three big movers we're watching we're going to start with visa,nsactions, the return of international travel boosting the top line. you can see the shares of 8.5% as well. operating margins shrank as -- menu price hikes helped to offset the higher costs, forecasting better than expected sales in the current quarter if trends persist as well finally twitter not the only company with plans to go private, potentially, mattel is seek its stock rise as reports rise that they've been in discussions with private equity buyers, the company currently valued at more than $8 billion their shares are up about 12%. we're going to start with the broader markets. nasdaq off its worst day since september of 2020. mike, i've got to get your thoughts on this it certainly seems like the word of the day is, quote, capitulation >> three out of the last four days, actually have had near washout-type numbers, very broad based and fairly urgent selling. i wouldn't say you saw the telltale signs, but it was people with low conviction, very nervous about getting in the way

i'm diana olick with breaking news hold builder sentiment in april dropped two points to 77 on the nationaldex anything above 50 is considered positive but that is the fourth straight month of declines it was at 83 a year ago. now, of the index's three components, current sales conditions fell two points to 8 # and buyer traffic dropped six points to 60, the lowest since last summer. salesforce expectations in the next six months increased three points to 73 following a ten-point drop in march. now, it's all about sharply rising mortgage rates. the average on the 30-year fixed started march at 3.9% and is now up to 5.15% according to mortgage news daily. that's the highest rate in over a decade the chief economist robert deates says the housing market faces an inflection point as an you unexpectedly quick rise in interest rates, rising home prices and escalating feerl costs have significantly decreased housing affordability conditions builders sentiment fell everywhere except in the northeast where it managed a one-point game no surprise on the interest rates, carl. >> thank you very much a