diana olick. thank you. >>> time for the morning rbi it's back.interesting on good news in the stock market yes, we said good news because as bad as it has been, there are stocks making people money. it's early it's monday. futures are down nobody wants doom and gloom. let's try to rollout and end out the show with positivity we dug in over the weekend and found stocks that have been doing great this month as the overall markets stink it up. they are not all oil and gas in fact, plenty of names and past performance in the past 30 days you may not know. here we go software company epam up 25% in the past 30 days western digital. hard drive maker up 24% mohawk they make carpet stock up 21% bath & body works. up 16% used car part company lkq. like, kind, quality. rising 14% campbell's soup? up 10% we eat so we all need toilet paper. kimberly-clark is up 9%. those are a few stocks there are actually many more in fact, this is the part, i hope, you find really random but interesting. in the past month, 123 stocks in the s&p 500 are higher that is nearl

here is diana olick. >> reporter: new technology is now mapping wildfire risks city to city, street to street and even house to house and with stunning results >> we calculate every individual property and structure's risks across the country, via commercial building or an individual's home. matthew eby uses everything from property tax data to satellite imagery. >> we can then use super computers to simulate a hundred million scenarios of wildfires today and another scenario of 30 years in the future of the forecasted weather conditions. >> reporter: it did the same for water to put a flood score on every property on its site it is the second most clicked features right behind schools. there is a fire score there as well >> on a monthly basis, we see tens of millions of impressions against our flood factor data. >> reporter: and given recent suburbans, the fire data may be just compelling, at least 10 million properties ranked some where between major or extreme wildfire risk. while flood risk grew about 20% over 30 years, wildfire risk is doubling and jumping more than 200% in places

home sales fell for the lowest month in april while prices don't show any signs of coming down diana olick details. diana? >> both higher mortgage and sales are taking their toll on existing home sales which were down 2%, down 6% from a year ago and the slowest pace since june of 2020 and that month was artificially low because it was at the start of the pandemic before sales suddenly took off the supply of listings continues to weigh on the market down 10% from a year ago, but rising interest rates also now factors in these sales numbers represent closings so signed contracts in february and march when rates were rising, the average rate on the 30-year fixed mortgage started at 3.66% ended in march to 4.78 and it is hovering around 5.45 which is why the chief economist says he expects sales to drop further because higher rates haven't fully done their damage yet tight supply continues to fuel prices and the median price sold in april is $391,200 and a 15% increase from a year ago and that was skewed by selling mostly on the higher end, while there is more supply so far, we're not seeing a

diana olick. that does it for "the exchange" everybody.erest rates. we'll see you after the break when "power lunch" picks up coverage for a very important hour indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. ♪♪ in the future we'll travel to incredible places with the help of magical technology. but what about today? i want my magical future now. ♪♪ i have places to go. ♪♪ rocks to climb. ♪♪ sights to see. and flights to catch... i can't wait for what tomorrow will bring, but in the meantime, let's enjoy the ride... ♪♪ >>> good day, everybody. welcome to "power lunch. i'm tyler matheson along with ellie evans. the fed decision is imminent, minute away. policymakers expecting to raise interest rates by a half percentage rate. it would be the first half-point hike since may of 2000. >> historic. before we get to the chan panel of experts, here's a check of the marketses. the dow is up 100 points the s

cnbc's senior climate correspondent diana olick joins us now with detail and her continuing series onps. >> we've seen seaweed as a substitutes for cattle feed and how about disposable utensils and it's renewables for plastics and this start-up is reaping the rewards. >> at sunday motor co cafe in madison, new jersey. >> i would take this over a paper straw because this doesn't feel soggy. >> customers are sampling the latest in sustainable, biodegradeable and most importantly, non-plastic utensils a straw made of seaweed designed to disappear >> sea technology is a competitive technology to replace plastic at scale because it's high performing, cost competitive, scalable and regenerative so it's the most sustainable alternative to blastec on the market. >> laliware is a native of hawaii and says she was struck by so much plastic pollution on its shorelines that's why she founded the silicon valley-based start-up laliware technology mills it down, combines it with color, minerals and water the result, seaweed-based pellets instead of plastic these pellets are revolutionary because the

what will this new dynamic mean for buyers and sellers diana olick.altors saying >> reporter: well, shep, realtor.com reported the numbers was still down 12% from a year ago, but then they looked at just the last week of april and supply was down only about 3%. danielle hale said april data suggests a positive turn of events is on the horizon for weary buyers they're facing not just high home prices but rising mortgage rates and that is in fact what's helping the supply higher mortgage rates are sidelining buyers and consequently slowing sales which leans more on the market. >> where are we seeing the biggest changes? are some markets already seeing a big gain >> a few of the markets are in the positive, like phoenix, kansas city, detroit, memphis, even austin which was a super hot market but most markets still have fewer active listings than last year some of the biggest drops are in l.a., raleigh, miami, d.c., boston i spoke with diana bull, she said she is starting to see some changes. >> i know everybody wants to hear that prices are cooling we ha

cnbc's real estate correspondent diana olick now. rs saying >> well, shep, realtor.com just reported its april numbers, showing the supply of active listings was still down 12% from a year ago but then they looked at just the last week of april and supply was down only about 3% herr chief economist danielle hale said april data suggests a positive turn of events is on the horizon for weary buyers of course, those weary buyers are now facing not just high home prices but rising mortgage rates. and that is in fact what's helping the supply higher mortgage rates are sidelining buyers and consequently slowing sales, which leaves more on the market. shep >> where are we seeing the biggest changes? are some markets already seeing big gains? >> yeah, actually a few of the markets are in the positive. like phoenix, kansas city, detroit, memphis, and even austin, which was a super hot market but most markets still have fewer active listings than last year, and some of the biggest drops are in chicago, l.a., miami, raleigh, seattle, d.c. and bo

let's get to our diana olick for more on that report. diana?der than expected, a drop in home builder sentiment in may, down an outsized 8 points to 69. this is the fifth straight monthly drop and the lowest reading since june of 2020 the street was looking for 75. now of the index's three components, current sales fell 8 points to 78, sales expectations fell 10 points to 63 and buyer traffic fell 9 points to 52. the average rate on a 30-year fixed jumped from 4.88 to a high of 5.64 in the first week of may and that's according to mortgage news daily nahb's chief economist, robert dietz, says the housing market is facing growing challenges building material costs are up 19% from a year ago and added that less than half of new and existing homes are affordable for the typical family today why are the builder stocks up? probably because they have been so beaten down the home builder etf is off 28% year to date so as the rest of the market rises, they are along for the ride back to you guys. >> diana, thank you very much. diana olick reporting. >>

julia boorstin on snap, courtney reagan on retail, diana olick on housing, steve liesman on global growth, and julia, we begin with you. >> well, tyler, snap shares down 41% on the company's warning that second-quarter revenue and adjusted earnings will likely be below the low end of its guidance range it provided for the quarter just a month ago snap saying in its 8k filing, quote, the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month as a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time. this warning that revenue growth will be below 20% is a dramatic slowdown from the 44% revenue growth that snap said it saw at the beginning of the year before russia's invasion of ukraine jeffries weighed in saying this is a sign that a, quote, macro environment that will likely impact the whole ad industry, and it is highly unlikely the weakness is isolated as we expect macro to impact all digital ads names. snap's warning and analysts concerns about the whole ind

higher costs are also hitting the housing market on that note let's get to diana olick. >> inflation it materials to build the home and going into the home building materials are up 19% year over year and close to 36% since the start of the pandemic and that's according to the national association of homebuilders and part of why they reported a huge drop in builder sentiment to a near two-year low for example, the price of softwood lumber is up 60% from last september concrete up nearly 9% and gypsum up 15%, and that's the wallboard. furniture is up 15%. appliance nearly 8% and overall furnishings and decor, up 8%. >> for homebuyers, talk about inflation in the price of of a home up 21% from a year ago and then add into that the rate on the 30-year fixed. it was 3.15% a year ago. now we're on 5.45. so no wonder mortgage applications to buy a home dropped 12% last week and single family housing starts, we have a read, affordability for buyers and cost for builders all taking a serious hit. back to you guys >> so, diana, are house prices likely to come down? i imagine maybe they would

been going up, but there's a variety of other issues, and for some of those, let's head east to diana olickok at this, and thought, wait a minute we were expecting 750,000. i've got to lay all of this on interest rates i really do. we started the month at 4.88% for the 30-year fixed ended at 5.14%. these are contracts signed in april. it's not back several months this is the most recent indicator. if you're looking at a $450,000 house, which was the median price, that mortgage payment just went up $100 in the month, but from the start of the year, that monthly payment has increased by $450. that's a lot for the average borrower also, looking at the month's supply for the builders, a nine-month supply up from a six-month supply, that's very high five to six-month supply is generally considered a balance between buyer and seller, so nine months means they're sitting on a lot of properties toll brothers is reporting after the bell, and we're going to look closely at the cancellations rates, because we're hearing that people who might have thought buying in january, put money down on a new home

diana olick. but from now on, that's going to be, i'm thinking we may do that. e is, don't put, just -- cher, diana, beyonce. >> just put diana. met me ask you one other question everything's in elastic now. we're going to pay for gas we're going to pay for whatever we want, because we haven't done what we wanted to do for so long, so we don't care how much it costs how long is that the case with interest rates and mortgages before it really starts sticking, do you think, or even prices? >> well, i don't flow know thatt rea really applies to a house. but the fact that people are risking a little bit more, and i'm not going to say that arms are more risky, but they are risky if they adjust to a lhighr rate after five years. still, i am hearing from real estate agents that they are having to have tough conversations with sellers that the sky is not the limit on prices anymore there's still demand, people are trying but the sky's not the limit. >> are you hearing that people are pricing things low and getting five, ten, 20% higher? >> after two days on the market. i

this may have some impact on people's thoughts about what is happening here diana olick will have theails next. >>> later, you don't want to miss this. we talk tech with alan patricof. chndorc private tech and publi te a me. "squawk box" returns after this. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create technolo in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. ♪♪ in the future we'll travel to incredible places with the help of magical technology. but what about today? i want my magical future now. ♪♪ i have places to go. ♪♪ rocks to climb. ♪♪ sights to see. and flights to catch... i can't wait for what tomorrow will bring, but in the meantime, let's enjoy the ride... ♪♪ when tired, achy feet make your whole body want to stop, it's dr. scholl's time. our insoles are designed with unique massaging gel waves, for all-day comfort an

let's get to diana olick to break down the report. ana. >> i think this is all about price point, melissa it really had to do with it being the high-end homebuilder you're talking about an average home price of $900,000 the buyers not being affected as much by the interest rates really interesting in the report that they kept their guidance of 20% revenue growth for -- the ceo said that while demand is still solid, over the past month, it has moderated from the unprecedented ways of the past two years as buyer adjust to higher mortgage rates. the other conditions, the stock market, inflation, the fed raising interest rates that are hitting these higher end buyers. it's seen this abrupt turn in may because we didn't really see the drop in march and april. we saw homebuilder sentiment dropping, but again, we didn't see the big drop until may >> thank you again, we hear about the change in may guy. the change in may. >> i'll say this about toll brothers there are things you can buy for trades here and i think toll brothers might be one of

dangerous carbon emissions that contribute to global warming into a martini this is toxic cocktail diana olickth her latest on the series of clean start-ups. >> we reported a lot on carbon capture which is various methods that take those co2 emissions from factories and other sources and keep them from getting into the atmosphere what do you do with all of that co2? how about making vodka >> it's the best vodka on planet earth. >> and says the air company gregory constantine for planet earth because the vodka is made from greenhouse gas emission. >> we use that co2 in creating the alcohols that we create. >> distilling alcohol the old-fashioned way not only has its own emissions and it uses 35 liters of water. >> it is far better for the planet in that we are removing co2 for every bottle that we're creating. >> the scientific process in these laboratories is invaluable, but it's not cheap air vodka, a 3-year-old start-up is a luxury brand about $65 a bottle, but at bathtub gin at lower manhattan the vodka is getting high praise. >> so once we tell them hey, this is how it's made and it's got

cnbc's senior real estate correspondent diana olick spoke to one seller eager to get their house off the market before it is too late. >> reporter: this los angeles home went on the market earlier this month and its owners were already getting nervous that the red hot housing market was suddenly chilling. >> we talked about that a lot, like, are we making a mistake here, are we missing the boat, is everything going to crash in the next three months and we are going to kick ourselves for not selling earlier this year? >> reporter: the house ended up getting three offers but the listing agent says multiple offers are no longer the rule. >> we used to get 10, 15 offers on most houses now i am seeing between two and six offers on a house, on a good house, we'll get six or seven. on an average house, one to or two. >> reporter: the quick and sharp jump in mortgage rates along with huge gains in home prices are simply pricing buyers out. look at what happened to a $300,000 house in the last three years n. may of 2019 w 20% down on a 30-year fixed and the rate then of 4.3 %, the monthly pay

let's go to diana olick now. >> the average rate on the 30-year fixed now over 5.5% to 5.55, accordings daily. it jumped 14 basis points from friday as bond yields surge. mortgage rates loosely follow the yield on the 10-year treasury but that has been super wide we expect to get a better idea of how much more at the fed meeting wednesday but apparently investors didn't want to wait. this is the highest rate since mid-2009 to add insult to injury, home prices aren't letting up so we are on the verge of hitting record low affordability. >> diana, thank you. >>> still to come, what rising rates mean for the home builder stocks we'll take a look at that with a few minutes left to go before the 3:00 hour. (vo) some bonds last a lifetime. some bonds inspire confidence, and some you grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income. >>> welcome

. >> so how -- i'm hearing from my colleague, diana olick, who i know you know well how will it affecthe build to rent trade, which you said you were bullish on that. >> i think build for rent is a great option for the consumer that can't afford the down payment. i think it's giving consumers flexibility. i do thinkthat many of the build for rent developers are in the same tertiary markets developing product that's not really affordable. it's very homogeneous and looks like the for sale home so i think that we need affordable housing there is a deficit for affordable housing, but the prices for rents have surged as well and land prices have surged. there's just a magnitude of inflation, whether we're talking the actual home price, the rents, the development costs, all the input costs, labor costs. it's tough for some of these build for rent operators to pencil the returns, so it could be that we just see disappointing returns. as the fed is so hawkish that they're really trying to lower inflation, slow home price inflation, as they continue to push on higher rates and, therefore, highe

let's zoom in on a couple of areas of concern and home builder stocks for one with diana olick and that'sr one, seema modi. that's another one let's start with you >> kelly, housing stocks are getting hit by a double wlhammy and the mortgage rates loosely follow that yield. so the average rate on the 30-year fixed hit 5.62% today and that's a new cyclical high according to mortgage news daly and it fell slightly after fed chair powell made no surprising moves and backed off more aggressive rate hikes and still, take a look at the homebuilders. big names down 20% year to date and lennar, pulte and dr horton down 5% to 6% on the day and the retailers that have taken a beating way off today and interesting that the home depot and lows not as bad as the decorator names and they get more commercial business from the builders consumers are likely pulling back more due to inflation and i want to throw that in there and mortgage lenders and loan depot which have been getting crushed on mortgage rates are also down big time, kelly. >> didn't we all know that higher rates were coming and we all als

diana olick, thank you becky. >>> thank you.n omaha at the berkshire hathaway meeting over the weekend, we got a chance to catch up with dan gilbert. this is the first time i had seen dan in years. he is recovering from a stroke he suffered in 2019. he is doing well he is working hard every day we talked about the tight housing market and what he sees today. >> intethere's no inventory we have to build more homes in the country. there's a period there years ago where we averaged about 2 million new net household formations in the united states every year that's immigration plus leaving the nest minus deaths. now it is lower than that. still not enough inventory there's a time the builders stopped building so i don't know what we do to send builders out to build p more houses? >> as you know, dan co-founded the online sale stockx his plan is to ipo this company this year. >> stockx is an interesting company. we're working on a public offering that will hopefully happen this year. >> it is the sneaker company >> sneakers. it is th

diana olick joins us now with more diana, what are you hearing?ng wildfire risk city to city, and even house to house. brooklyn based nonprofit first street uses everything from property tax data to satellite imagery, to incorporate construction type, exposure to combustible trees and grass, roof type and weather. and then it assigns a wildfire risk score to each individual structure, commercial and residential. >> we can then use super computers to simulate 100 million scenarios of wildfire today, and then another 100 million scenarios 30 years in the future with the forecasted weather conditions >> now, it did the same for water. working with realtor.com to put a flood score on every property on the site. that's now the second most clicked feature right behind schools. starting today, there will be a fire score for each property, whether it's for sale or not so far, it found at least 10 million properties ranked somewhere between major and extreme wildfire risk, while flood risk grows by about 25% over 30 years, wildfire risk is doubling overall

our diana olick has more >> the federal reserve played a massive role in fueling the pd-induced housingwhen the pandemic started, take a look, the average rate on the 30-year fixed dropped from just over 4% all the way down to 2.75 it set more than a dozen record lows in 2020 alone and rates stayed low through the end of last year. why? because the fed not only kept its key interest rate at zero, but it also restarted its large-scale purchasing of agency mortgage b-backed bonds and holds 30% of them. big fed demand kept mortgage rates low. prices up nearly 34% since the start of the pandemic. low rates give buyers more spending power but now the 30-year fixed has spiked up to over 5.5% just in the last few months because the fed stopped buying mbs and is about to start selling off its balance sheet in addition to raising its rate which pushed the ten-year yield for home buyers today with both higher prices and higher interest rates, the monthly mortgage payment for the average home is now about $1,800 more than it would have been for the same home at the start of the pandemic as a resul

>>> potential home buyers may have gone watching, and we are in one of priciest housing market diana olicks rates, but mortgage rates ticked down a bit on the news it dropped back a little after the presser. analysts reacted, saying even though rates are higher, they may plateau around this level and potential home buyers could be more willing to reenter the market home sales have been falling for the last five months as rates rose of course, we still have a supply issue, which will keep home prices from falling though we are hearing there's far fewer bidding wars than six months ago. >> we're not out of woods yesterday, not only are mortgage rates way up, but home prices are 34% higher than at the start of the pandemic. that's largely due to fed-induced record low rates for the past two years that has increased the monthly mortgage payment by about $1800 since the start of the pandemic. amazing increase >>> thank you, the sell-off picking up steam, s&p down 2.9%, 4176 the nasdaq leading losses down 4%, the dow down almost 2.5% energy is the only sector in the s&p that is hanging on to, de

for that, we head east to diana olick. >> homebuilder sentiment in the market dropped an outside eight fifth straight dropping, the street was looking for 75 of the index's components, it fell for 78, sales expectation in the next sick months drop ten points to 63 buyer traffic fell nine points it's a combination of rising mortgage rates and rising building costs the average rate jumped for 4.88% to a high of 5.64% in the first week of may. nahb's chief economist said the housing market is facing growing challenges building material costs are up 19% from a year ago. he added less than half of new and existing homes are affordable for the typical family today regionally sentiment was highest in the west, lowest in the midwest. >> higher mortgage rates are starting to buy. thank you, diana >>> good morning welcome to another hour here on "squawk on the street." take a look at where we stand. we're rebounding here in the markets. financials and technologies are the leader goldman sachs and home depot biggest contributors, walmart is lagging off earnings, rallying, anyway, and the nasdaq c

diana olick is back at hq with a deep dive into market conditions affecting the cost of a home. >> this morning's drop in mortgage demand comes after a report yesterday showing a far wider drop in sales of newly blt homes. i want to show you this reversal in what was a red-hot housing market the quick jump in mortgage rates and huge gains in home prices pricing buyers out look at a $300,000 house in the last three years in may of 2019, 20% down and a 30-year fixed, 4.33, the monthly payment was $1,132, not including insurance and property taxes. then you see mortgage rates fell in the next year even though the price of a home went up to 5% at start of the pandemic. the monthly payment, take a look at, that it actually dropped then you go to 2021 where you see that home prices were up 15%. again, the 30-year fixed rate drops to 3.15. the payment really up just about $100 and then comes the real hit. you see in 2022, home prices go up 21%, but the real change here is that you see the 30-year fixed at about 5.5%. that's when you really get that big kick in that monthly payment. it's up alm

for that number, we head east to diana olick.a seasonally adjusted of 5.61 million units, right along expectations the slowest sales pace since june of 2020 that was actually an artificially slow pace, because it was right at the start of the pandemic it's all about supply. the supply down 10.4% year over year at the current sales price, that's a 2.2 month supply. it continues to push prices higher despite rising mortgage rates, median price there, 391$391,200 of course, that's skewed partially by what's selling, mostly on the higher end, where there is more supply the average rate on the 30-year fixed mortgage stated february at 3.66%, ended march at 4.78% it is now hovering around 5.45%. the chief economist for the realtors said, while he expect sales to continue slowing, he doesn't expect much easing up on prices, leslie. >> interesting these are focused on closings, and a lot of people are working on buys home as rates were rising, they could have much higher expenses in the months to come when do you see that inflection poin

about 8:30 we'll give you the instant analysis as soon as it break >>> diana olick talks about this theame in higher than expected but revenue guidance was $900 million to $1 billion and the estimates are $1.8 billion that's lik th that's like you could drive a truck through it the 2022 market is uncertain inventory levels very low. that say it is all right there supply and demand in balance "squawk box" coming right back [sfx: street ambience] ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in other words... etoro.the power of social investing. >>> good morning, and welcome back to "squawk box" right here on cnbc. we are live from the nasdaq market site in times square. pretty dark out there today, a lot of rain. i'm here with joe kernen and andrew ross sorkin this is coming after the steep decline from yesterday if you were looking for a bounce back this morning, nope, at least not yet. dow futures are down about 113 points, the s&p down 18. we did see yields pick up. in fact, the ten-year note at this poi