diana olick and i will get to the calls in just a minute. what are you watching now then in these coming weeks? what are some indicators and what will they tell you? >> guest: i think prices and supply, those are the most important indicators for the housing market because they play off each other. home builders really pulled back and that was not a they saw demand pull back in june and fewer drug and intoxicants being signed and they slowed construction and that's the opposite of what wehe need right now. we need more holmes because despite some of the demand pulling back, there's a very large housing deficit. all kinds of mysteries from $1 to $5 million deficit in the homes. the prices will be nothing like the great recession when home prices plummeted nationwide and people went underwater on their mortgages and a massive amount of foreclosures. not going to happen. people have tons of home equity and gained trillions collectively in home equity over the last two years and even if prices fell, 5% on every home nationally, you'd see less th

guest: diana olick? guest: i'm guessing that house in howard university area will sell really fast, even if it does need to be gutted. that is a very hot area. good luck with that. you were talking about the austin area. i was there last week giving a story about a massive community, 7000 homes on a geothermal grid. it was the whole climate and be listed convergence. i'm surprised when you say none of those houses are sold. whisper valley was sold out. they had contracts on homes not built yet. you are right next to the tesla giga factory, which i had never seen a building that large of my life. we kept driving and driving and driving and there are thousands of workers. not to mention austin has been pulling and tech workers for the last several years from all over the country, especially california. the housing demand in austin and the outer area where you see massive communities built, that will sell. i will not be concerned they are building spec homes that sit here and not sell. they will because the

we are joined by diana olick, cnbc's real estate reporter to talk about housing prices. diana olick, where does the rate stand right now? they are changing every day, what is going on? guest: mortgage rates don't move day-to-day but you can get an average. we have a guy who runs them for us.

diana olick joins me with that story. diana?ossed over 6% today. higher rates will likely exacerbate what we saw in august new data shows that august marked the first month in more than two years that homes spent more time sitting on the market. this as the inventory kept rising, up nearly 27%. this happened even though thougr sellers entered the market in other words, it's stale inventory. listing prices fell from 449,000 in july to 435,000 in august in addition, one in five sellers already on the market reduced their prices a year ago barely 11% of sellers offered price cuts and yet another report from redfin showed at the end of august the average home sold for less than its list price that's the first time that's happened in a year and a half. of course, now we are in september which isnot quite fall yet, but the start of the slower housing season historically one positive note, we are getting more data on the rental sideshowing inflation hits consumers and lenders have more pricing power. >> how do rising rates and the seas

guest: diana olick?st: i'm guessing that house in howard university area will sell really fast, even if it does need to be gutted. that is a very hot area. good luck with that. you were talking about the austin area. i was there last week giving a story about a massive community, 7000 homes on a geothermal grid. it was the whole climate and be listed convergence. i'm surprised when you say none of those houses are sold. whisper valley was sold out. they had contracts on homes not built yet. you are right next to the tesla giga factory, which i had never seen a building that large of my life. we kept driving and driving and driving and there are thousands of workers. not to mention austin has been pulling and tech workers for the last several years from all over the country, especially california. the housing demand in austin and the outer area where you see massive communities built, that will sell. i will not be concerned they are building spec homes that sit here and not sell. they will because the dem

. >> we'll talk more about it with diana olick coming up, housing, sarah. and i'm not saying you're some sort of real estate expert, but a cio, you probably follow ever. liz ann saunders of schwab tweeted to out earlier today, but that owner equivalent rents was at the highest level since 1990 but at the same time, you've got mortgage rates at 6%, the housing market seems to be on really shaky ground. housing market is probably a lot more important to the macro american economy than the stock market it is an important component, if you look at cpi today. it was shelter, food, health care costs that were some of the biggest drivers of inflation those shelter costs have been an issue for quite a while now. if you look at the housing market, one would say that with rates going up, shouldn't that cause the markets to roll over it really hasn't completely rolled over yet, because supply is so tight right now, that you have this issue, same with the employment market, that even if demand starts to soften, supply has been so tight that both of those areas are rema

diana olick. i just want to bring you some new 52-week lows as you can imagine there's no shortage of them in today's session but it shows you the scope of the damage being done right now in the markets you've got meta trading at lows that we haven't seen since april 2020 there are the home builder stocks getting crushed whirlpool trading at the lows of july 2020. a lot of these stocks, comcast, our parent company, lows of april 2020 the travel and leisure stocks are getting hit especially hard. seema mody with the details. is that the end of the reopening surge on travel demand >> sara, as we learned in this inflation report, one area of relief for americans is airfares they fell 4.6% in august after falling a8% in july once the holidays hit, average airfare expected to be 43% more expensive than a year ago according to hopper. so it's the forecast for future prices that you could say is part of the story with travel names trading down really across the board. airbnb, united, marriott, booking, d

market is cooling off, interest rates are weighings on home values we'll talk real estate with diana olickxt. nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years. >>> welcome back to "the exchange with the 30-year fixed mortgage rate firmly above 6%, it's not a surprise that mortgage demand is dropping diana olick joins us right here at cnbc. great to see everybody in person, though i did see you in d.c. a few months ago. mortgage demand is down, abu homebuyer demand is down, because mortgage rates are up. prices dropped 0.77% it was the largest monthly drop since january of 2011, and the first monthly drop of any size in over two years. roughly 85% of major markets have seen prices come off their peaks through july, with one third coming down more than 1%, and one in ten falling by 4% or more after gaining trillions in home equity collectively, some homeowners are now losing some of that housing wealth,

back to you. >> diana olick reporting. >>> up next, the push to retro fit dams so they can help produce electricity. more i have type 2 diabetes. i've pricked my finger. . . too many times. and my a1c was still over 9. then i got the dexcom g6. i just glance at my phone and there's my glucose number. no fingersticks. none. my diabetes is no longer a mystery. ve 2 points to 7.2. that's a huge victory. i feel like i'm calling the shots, not my diabetes. ♪ go on and check my drip. ♪ ♪ take a bite. feelin fit. ♪ ♪ we're breaking the mold. ♪ ♪ estado dorado. ♪ ♪ shining like gold. ♪ ♪ estado dorado. ♪ ♪ vive en el estado dorado live in the golden state ♪ >>> turning might not seem as common as other renewable resources like wind and solar, but there's more precipitation than ever before in parts of the u.s. because of climate change, so why aren't we using water more to our advantage? here's nbc's mora barrett. >> hydropower it's a resource often overshadowed by solar and wind. >> you think about hydropower a couple of things come to mind. one is extreme drought and the other is plumbing. th

diana olick joins us now with the ceo david sing lapd.a. >> dave, good to see you again you're getting your folks on the ground but you have roughly 12,000 properties directly or indirectly within the path of hurricane ian and still both in florida and south carolina to come what can you tell us about the damage that you've seep so far to your assets. >> you know, we were very, very fortunate. we thought that the hurricane was going to take a direct hit right into the clearwater-tampa area we have, us a indicate many assets there, about 3,000 assets, and the hurricane landed south of tampa as a result damage so far, and we're very, very early in this evaluation process as you indicate our people are just getting on the ground today and taking assessment of the damage out there, but what we've seen to date is primarily minor damage, downed trees yard issues. some minor flooding in some of the houses, and a number of the telephone calls coming in are just about things like electricity. how do we get the electricity back on? but we're very,

i like diana olick i think she does a good job. i don't think she made up the report she didn't say i'm reaching into my fictional bag i think it's a possibility if you listen to what oracle had to say about cerner, big health care company, things might be getting better over there. people aren't going to cancel trips. that's service you can't change that. that is something that is post covid, carl, people have been locked up. the idea that the autos, you continue to finally get the semiconductors and therefore flood the space of autos is not included in those numbers but is certainly the truth now. and then what i think will happen, this whole -- what we're going to hear is the endless debate of .75 versus 100 that's a red herring you have .75 that's what the two to three-year says. i'm tired of taking my cue from the futures because they have not been right if i look at the banks and i say, oh, my, i am really worried about owning citigroup, carl, because of this, don't people realize that what you have is going to be able to get

clean start is next, diana olick is in the house.be here in just a moment. ♪ icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers. and it's easier than ever to get your projects done right. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done. >>> welcome back to "power lunch," everybody. food waste accounts for 8% of global greenhouse gas emissions. in the u.s. alone it is equivalent to 33 million cars, but if we could reduce that using something as basic as bluetooth. our senior climate correspondent diana olick joining us on her series of clean start-ups. >> it means items embedded with sensors or software and in the case of this start-up called willia, it's tiny tags attached to food, medicine and other items that track every aspect of their lifespans in order to reduce waste >> it's this ability to

down the crucial moments plus charter equity research's ed snider is here to talk more apple and diana olickage reits. energy about to go positive in the s&p 500. everybody else is down the s&p almost 25% off highs how much more pain are we in for? >> yeah, great to be with you, sara another challenging day after a really good day yesterday. we continue i think to have this very complex global backdrop and that, you know, it may make sense to be upping quality and defensive but more of a short-term perspective in a little more positive short term and even today i know looks ugly but watching a couple of small positive divergences, yes, you know, apple is down a lot. utilities are down and towards the end of at least a market decline you bring down the winners as well. we're seeing that today. and then you see like as you mentioned energy a little bit as well and most of our technical indicators are the most stressed to the downside we've seen since the mid-june lows and before the pandemic lows, i want to be clear, we don't think it's time to be on offense we thought the market was closer to

diana olick also in dc, here with more on that. diana? >> brian, in order to understand, we need to take a close look at affordability, of course, and how rates played into that in the past. take a look historically at the share of your income you'd for a monthly payment. it tracked right along with interest rates, until the subprime mortgage boom then it split, because people didn't get 30-year fixed mortgages, they got no down payment loans, so basically paid nothing for a house. prices went way up, but a massive crash ensued then the lines moved closer again, but not quite together, because the fed kept rates low, so the economy didn't crater fast forward to now. and a massive split again. why? because the government again stepped in due to the pandemic and mortgage rates hits more than a dozen record lows, pushing home prices up over 40%, in just two years. suddenly now, rates more than double in a matter of months, thanks to the fed's push to ease inflation. so now, the median home price, as a percentage of income, is up about 46% in

diana olick on what it means for real estate, kate rogers on small businesses and inflation first, cnbc senior economics correspondent steve liesman. man, that was painful. break down the inflation data for us, steve. >> shep, overall inflation continues to be high in several key parts of the economy with declines in some sectors forecasters were expecting not adding up. some sectors just not showing up gasoline prices, they fell as expected it takes out food and energy it was up 0.6, double the expectation. this is what the fed or federal reserve follows most carefully, and it was driven by a hefty 0.7% in housing increase costs it may be several months before that cools off >> what does this mean for the fed? >> the fed would seem to have no choice here but to keep raising interest rates essentially slamming on the brakes to try to slow this economy down it's likely to continue to hit the brakes harder than it's done in a very long time. before this year, the fed most recently increased short-term funds rate by .75% of a percentage point it's now boosted i twice by that much and after

diana olick, thank you very much >>> all of this comes bringing us right back to the conversation and the debate that is driving all the market moves. and that is the federal reserve. chicago fed president charles evans striking a cautiously optimistic tone on "squawk box" euro and reminding us that fed policy does take time to work its way through the system listen >> there are lags in monetary policy and we've moved, you know, exped expeditiously. we've done three 75-basis point increases in a row and there's talk of more to get to that 4.25 to 4.5 by the end of the year. you're not leaving much time to look at each monthly release again, i still believe that our consensus, the median forecast to get to the peak funds rate, assuming -- you know, by march, assuming that there are no further adverse shocks and if things get better, we could perhaps do less. but i think we're headed for, you know, that peak funds rate >> here now with his reaction and what is next for the fed and maybe house market is dick kovacevich, former chairman and ceo of wells fargo thank you so much for having

morgan >> yeah, very volatile diana olick, thank you. >>> we're about 30 minutes into the trading session watching we'll start with jetblue and american, both flying as the u.s. justice department goes to court arguing the company's partnership is anti-competitive. the trial is expected to last about three weeks and it will give the market a gauge on the deal-making climate in general you can see jetblue and american, each up about 3% right you in meantime, starbucks is poised to open its 6,000th store in china. this will happen on september 30th and despite lockdowns and a slowdown in consumer spending, the coffee company is aiming to operate about 9,000 stores in 300 cities in china by 2025. shares are up 1% d doordash will launch a credit card in partnership with jpmorgan on mastercard's network. no details on a launch date or annual fees but shares are up 2.5% >>> we do have the markets bouncing back a bit, a bit this morning. this is major averages look to snap what has been a five-day losing streak. the dow and s&p both closing at lowest levels since 2020 dom chu is with us and he c

required the bank will look only at the income and home location cnbc's real estate correspondent diana olicks with us >> it will help buyers who might not otherwise be buyers. the program is in five cities. charlotte, dallas, detroit and miami and borrowers don't need a down payment, but have to prove the ability to make the monthly payments given high interest rates, that is hard if you get the down payment granted to you this is not new. there are several other banks doing similar programs wells fargo for one has a 3% down payment loan for low income consumers that can be combined with other assistance programs the v.a. has no programs for veteran family members and no down payment usda loans for people in rural areas. that's an important one as more and more people who can work remotely are moving to rural areas. the programs have been in place for a while and we have not seen that dent in homeownership >> i hadn't heard of most of those. the 30-year fixed is above 6%. you know, these higher rates, it has to be affecting sellers. >> imagine a seller who says i want to sell and move up to

technology in housing aims to make homes more weather resilient and more environmentally friendly diana olickns us from just outside austin with a look at some of those technologies and how they're being implemented. hi, diana. >> hi, contessa. i'm standing on top of the largest-ever residential geothermal grid. every home in this 2,000-acre development will be heated and cooled by the system which is powered by solar >> so if you just travel down below your feet 30 to 40 feet it's a constant temperature all year round 72 to 74 degrees so we want to access that because that makes the heating and cooling equipment all the more efficient. >> eco smart systems, a subsidiary of taurus investment holdings pumps water deep underground to access that mild temperature through the water. >> these are the pumps that are used to distribute the water throughout the entire geogrid. >> a geogrid that will eventually heat and cool more than 7,000 homes before any construction, bore holes 300 feet deep are under every lot to circulate the water for each home thurman homes is one of the builders. >> with the

and diana olick, senior climate and real estate correspondent for cnbc, discusses the state of the u.s. housing market. also, california democratic brad sherman on the democrats' fall agenda heading into the midterm elections and foreign policy challenges facing the biden administration. watch "washington journal," live at 7:00 a.m. eastern this morning, on c-span or c-span now , our free mobile app. join the conversation with your calls, text messages, and tweets. -- watch live coverage this morning at 9:00 a.m. eastern on c-span 2, on our free mobile video app c-span2, or online at c-span.org. c-spanshop.org is c-span's online store. rouse the latest -- browse the latest. there is something for every c-span fan, and every purchase help support our nonprofit operation. shop now or anytime at c-spanshop.org. >> next, former obama administration national security officials talk about the fbi's search of mar-a-lago and the potential legal implications. since this conversation, a federal judge authorized a special master to review the documents received. the washington post also reports a

that's why so much new technology is focused on reducing those emissions diana, the two lives of diana olickone look. this is part of her continuing series on climate start-ups. >> look, in order to make a dent in the massive amount of real estate emissions, we need to build buildings better and build better buildings and that's what a start-up called assembly osm says it's about to do. >> we're using the tools of aerospace to design these buildings. so we're modeling the buildings at a much higher degree of detail. >> reporter: using the same software of boeing for design and constructing the pieces in factories, they claim they can reduce carbon emissions in construction. >> where people in the aerospace industry make wings and engines and the fuselage, we have people that make bathroom pods, kitchen bodies, floors, walls and ceilings and we assemble them like this and clip them together. >> reporter: the off-site assembly reduces the amount of fuel-burning trucks on site by 70% and the buildings are made lighter and tighter through the high-tech design reducing later emissions from heatin

thanks diana olick.so we were just talking about how main street's going to feel pain and what is holding up is housing and if he's going to break the back of inflation that's got to come down. >> sounds like they're selling less homes for more money. that was my takeaway there you would think that the inflation in the housing, the actual price of the home has to be coming in or sooner or later will be coming in, which means the bottom line will be less you cannot think in a rising rate environment that they're going to earn more money going forward. >> right so what does that mean for a home depot because you like to go there literally. >> i do. i do i'm a junkie for the black and decker tools you have a dynamic with the homebuilders where you have to see rates going higher home depot is trading just above a market multiple. it trades at a premium to lowe's i'd rather own lowe's. they can both pull back more 250 is an area you can start nibbling i done home depot. i think there could be more pain >> i w

cnbc's diana olick reports on one company pushing for a solution. >> shep, in order to make a dent in the massive amount of real estate emissions, we need to build buildings better, and build better buildings and that's what a startup called assembly osm is about to do. >> we're using the tools of aerospace to design the buildings. we're modeling the buildings at a much higher degree of detail. >> reporter: using the same software as boeing for design and constructing the buildings in pieces in multiple specialized factories, 4-year-old assembly claims it can drastically reduce carbon emissions in construction. >> where people in the aerospace industry make wings and the engine and the fuselage, we have people who make bathroom pods, kitchen pods, floors, walls, and ceilings, and we assemble them in our facility and click them together. >> reporter: he says the offsite assembly reduces the number of fuel-burning trucks needed onsite by 70%. and the buildings themselves are made both lighter and tighter through the high-tech design, thereby reducing later emissions from heating and coo

cnbc senior market commentator mike santoli back to break down crucial trading day and diana olick alongeverything we're seeing in health care. mike, back to you. nice comeback in the final hour of trading what's causing it. >> treasury yields were in off their highs from the morning the market did get some traction there. a monday after a friday options expiration, sometimes you get a little relief there. also, the general sense out there, we also had a late day rally on friday that folks are underpositioned in stocks. we had this nice slide into a fed meeting. squaring up means buying as opposed to selling i think all those things together probably account for it we're still knocking around thoos levels a lot of bulls were hoping we're going to hold even slightly higher i think it mostly says that people didn't have a huge urgency to sell. >> yields -- we made new highs, highest since 2011 on the ten-year mike wilson says he thinks we're peaking in yields but the market has a long way to go down. if you think you're peaking on yields, that might make other people bullish for stocks. >>

diana olick has the latest mortgage numbers hey, di. >> the average rate took another big leap todayping 26 basis points to 6.62%. that according to mortgage news daily whose coo told me the fed only amplified the message of faster rate hikes and powell's message did nothing to soften it longer term rates are getting caught up today. mortgage rates loosely follow the ten-year treasury yield. if you're buying a $400,000 home with 20% down, your monthly payment is now $320 more than it was just at the start of august and $700 more than it was at the start of this year not great news for anybody out shopping for a house this weekend, tyler. >> diana, thank you, i think >>> let's get to leslie picker for a cnbc news update. >> thank you your update at this hour a new report today says that unemployment fraud during the covid pandemic may have resulted in over $45 billion in losses. this is roughly three times the previous estimate. the labor department says that more coordination is needed to investigate and charge those responsible. >>> tesla is recalling more than 1 million vehicles ov

here's cnbc's senior real estate correspondent diana olick. >> reporter: at an open house in phoenixr the weekend. >> should we do an addition or should we buy? >> reporter: potential buyers were nervous. >> the interest rate thing is a little tough. >> reporter: tough because not only do sharply higher interest rates make pricey homes pricier but for current homeowners looking to move up -- >> one of the challenges for us is we currently have an interest rate of 2.875% so the idea of getting a bigger house and more than doubling our interest rate is not particularly appealing. >> reporter: that's the main reason home sales are slowing down quickly sellers are no longer in the driver's seat so when they had no power they suddenly do. >> they are, therefore, asking for incentives so they can help buy their rate down and they're asking the sellers for that incentive on top of their offer they're making. >> reporter: and prices are finally coming down. >> the washer and dryer is brand new. >> reporter: they normally fall from june to august because families buy bigger, more expensive ho

>> all right, diana olick, thank you very much. >>> slipping home sales are signaling a slowdown, she sells seashells by the seashore. 30 fixed rate marge hovering, that is up from 3% in the beginning of the year. mortgage rates have doubled in nine months. and in just 40 minutes, the fed is poised to another rate hike, that rates are far more important to the housing market than the stock market. the point we made, george, welcome, was that we're the stock market, but it's a lot more important than the stock market is. things are nervous right now in fact, what we're seeing is a housing market skating on a knife's edge, trying to determine where the economy more importantly is going to your earlier point and diana's point, rates are up over 300 basis points, what that really means for today's buyer of a medium-priced home, their monthly mortgage payment is 66% higher than it was a year ago. you put that in perspective with prices up 14%, at least listing prices on realtor.com, rent's up 12%. inflation up 8.3%. that interest rate impact on mortgage payments, and most americans buy the

the chart master will show us and diana olick is here to explain why the number seven is not a lucky number for home buyers and later cathie woods on stand by and get ready tonight, we have some slow money for you. but traders give us their best idea for a stock worth owning if you have five years to buy and hold i'm melissa lee and we're live at the nasdaq market site in the heart of times square. we begin with the markets falling below that bottom set in june the s&p midday dropping below the 3636 level falling deeper into bear market territory today a 52-week low. the pain coming to every corner of the market. the nasdaq just by posting a small gain now down more than 30% for the year the dow down close to 20% and the russell 2000 off nearly 26% and check this out, the microsoft and alphabet and amazon and apple have lost close to $2.5 trillion in mark cap since late december. each company dropping $500 million in value in less than a year. where are we right now, guy? >> you know, everybody calls me like delores downer and think i'm negative bad -- actually today's action in term

fuel use to get them to landfills, how do you reduce your emission, senior climate correspondent, diana olick> one of the reason companies produce waste is because they don't know exactly what is in the products they are throwing up, what can be recycled and re-purposed. that's where a start up called smarter sorting comes in >> we have a huge data set, over 456 data points on what products are, their physical and chemical attributes. >> smarter sorting uses that data to help retailers and brands increase sustainability and reduce waste while complying with increasing regulations on waste disposal. >> when you can use math and data to determine what a product is and if it's actually toxic, then you can handle it in a lighter footprint way through the supply chain and at the end of the life. >> whether it's food, chemicals, plastics, product packaging. >> will this blow up is that toxic. smarter sorting knows. >> it can identify every ingredient so it can inform a company specifically how to better dispose of it, recycle it, or perhaps in the case of food, donate it to a food bank albertson's,

where wine -- >> that may be a large percentage or beer for some people or for example, the gym for diana olick. >> that's called my basement, steve, which the price has not changed at all >> two things, quickly, you win the chart wars, steve 100% diana had like a line. >> if i didn't it would be very bad. >> i had more. i had more charts. i had a bunch. >> it's like the chart above her shoulder, look at the red. >> i will give her the final word -- >> i have to have the final word on one thing. >> when will we get more data on housing that's really meaningful when will we know when the 6% number is starting to hit if it's not already >> what we're watching most closely is prices and inventory because they rely on each other and that's the most important thing driving this market right now. i'm not looking at ckay shiller going back two months ago. i'm looking at what we're getting right now from monthly moves, which we don't usually track in prices, but monthly moves in home prices, which show discrepancies in the seasonality of housing that is prices usually go up in the summer they didn't th

sort of the opposite b.k., diana olick mentioned today was the ninth read in a row, nine months now of weaker home build sent. certainly starting to feel the pain a lot of economists already say the sector is in recession could you be a buyer of any of these stocks on the idea that rates may be topping out >> no, no. >> because they're topping out or because you don't like housing? >> well, for both. one, i don't think rates are topping out. in a period where rates are going to be higher for longer. i think we have -- it's going to be very unusual if inflation actually moderates and then just levels off i think it's a far shot that they get to 2% i think we're more likely to have inflation for the next five years somewhere above 4% so number one, i think rates stay at these levels number two, if ilook at house price indexes, depending on which one you look at, you're still up 14 to 18% year-over-year how can you be at the bottom of a cycle if prices are still up if you had told me hey, prices are down 18% and you had all these things and maybe work towards the end of the cycle, then ye

diana olick on what it means for real estate, kate rogers on inflation, first cnbc economic correspondent steve liesman. break down the inflation data, steve. >> overall inflation continues to be high in several key partsst economy. with the decline that's forecasters were expecting in some sectors just not showing up gasoline prices, they fell as expected down nearly 11%. and there was a related decline in nearly 5% in air fairs. but good prices, they surged 8%. 0.8% the core rate you talked about, it takes out food and energy it was up 0.6%, double the expectation. this is what the fed follows closely. it was driven by an increase in housing costs. it may be several months before that cools off. >> what does this mean for the fed? >> the fed would seem to have no choice here but to keep raising interest rates essentially slamming on the brakes to try to slow this economy down it's likely to continue to hit the brakes harder than it's done in a very long time. before this year, the fed most recent lyn creased short term funds rate by .75% n 1994, 28 years ago, its now boosted it twice by

diana olick with that story. last week was the first time the weekly average on the 30-year fixed went over 6% since november of 2008 6.01% last week to be exact according to mortgage bankers association. the increase hit refinance demand which was already battered it fell another 4% for the week and was 83% lower than the same week a year ago. with rates above 6% only about 452,000 borrowers can now actually benefit from a refinance. that according to black knight that is the lowest number on record mortgage applications to buy a home essentially flat week to week but they were 29% lower than the same week a year ago. and i'm hearing from real estate agents that more supply is coming on the market but they're starting to do deals now with full contingencies like home inspections. haven't done those in a few years. rates shot significantly higher yesterday after we got that hot cpi number and then a little bit higher today to 6.3%, that according to mortgage news daily. the question now is will they stay in thisr

diana olick's report which is about rents coming down is completely ignored by this the idea the dow down 1.5 which ones look, i just need a name give me one darn name that should be down that much are we going to be ruled by the futures which have been wrong for the year are we going to be ruled by the individual companies you want to buy disney no, i'm really worried about the fed. what do you mean what kind of broad brush address is that. this is not a rothgo this is a rembrandt. >> jim cramer in seattle big show later today >> you should sell starbucks on that you should sell it because -- let me come back. >> and you have starbucks. a little bit later on "mad money" as well as the ceo of costco we're looking forward to watching both of those big interviews, jim. >> right now for more on the markets, joining us is joanne feeney she's a partner and portfolio manager at adviser's capital management what do you think? these numbers coming as a shock to the markets looking at the fed futures now anticipating quite a bit longer and higher in terms of where the fed's going to have to k

. >> host: we are joined this morning by diana olick who is cnbc housing reporter, real estate reporter about housing prices and

diana olick has the numbers. >> it was a nice surprise to the upside on starts the bulk of the gain wasingle family was up just over 3% from july to august this may be why. take a look at what happened to the average rate on the 30-year fixed mortgage after bumping over 6% in june it came down and really dropped in august, nearly hitting 5%. d.r. horton noted that they saw a start. mortgage applications to buy a newly built home actually jumped 17% from july to august. that's unusual this number is not seasonally adjusted and usually falls in august so, the builders clearly responded. but rates began to rise again by mid-august and that's likely why we saw the disappointing single family permit numbers, which are an indication of future construction, down 3% for the month and down 15% year over year that's the lowest since june 2020, the initial pandemic panic before the big rise in construction in the builder sentiment number we got yesterday which moved further into negative territory, builders pointed to this bump up in rates by the way, the 30-year fixed is now not just back over 6%

diana olick, thank you >>> we're 30 minutes in the trading session.hree big movers we're watching. biogen, shares surging, more than 4 times the 30 day average. showing dramatically slowed progression of the disease in a study. you can see those shares are up 36% right now. plus lyft, the latest to rein in spending where the workforce is concerned saying lit freeze hiring through the end of this year that follows a previous statement in which lyft said it would slow hiring dramatically as it seeks to cut costs those shares are up 2% thor industries reporting better-than-expected profit and revenue for the latest company the company seeing strength in its motorized rvs with a 24.5% gain over the prior year, but also flagging lower consumer confidence and macroeconomic uncertainty and saying it's adjusting some of its production levels in light of that as well. nonetheless, you can see shares of thor are up 3%. david. >> thanks, morgan. the bank of england the big story this morning it will temporarily purchase long dated u.k. government bonds in an eff

what will it really mean, though, for consumers still in the market to buy a home our diana olick has hi, carl. first and foremost, we need to understand that we already had a housing shortage before the pandemic as the largest generation was aging into home buying years and home building was still weak after the great recession. then came the pandemic and government-induced record low mortgage rates both the pandemic and those rates really drove fast home buying demand and home prices shot up more than 40% in just two years. suddenly now, rates more than double in a matter of months and home builders and sellers pull back, leaving us with still very low supply so, what does that mean for affordability? the monthly payment, which really decides if you can buy a home take a look historically at the share of your income used for a monthly payment. it tracked right along with interest rates historically until the subprime mortgage boom and then it split because people didn't get 30-year fixed mortgage they got those wonderful no down payment teaser rate loans so they basically paid nothi

. >> all right rick, thanks diana olick joins us now with more hi, diana. >> hey, joe.i think this is what happened here in august. really interesting divide out the single family versus multifamily most of the gain was multifamily up 28% month to month, but single family starts did see a bump up 3.4% why? take a look at what happened with the 30-year fixed in july and august we saw the 30-year fixed pull back close to 5% in august we haven't heard the ceo of dr horton say they saw a lot more people coming into their models in august because of that drop in rates and that there was a bump up inside contracts during august as we know, of course, in september it went right back up and we are now at 6.42%. but it was that august drop in mortgage rates that i think really juiced these numbers for the builders they saw more people coming in also, we got mortgage applications to buy a new home for august they jumped 17% in august month to month they don't usually do that from july to august not seasonally adjusted but usually we see those applications come down from july to a

i know that diana olick ran a great piece yesterday about some places where it's peaking.'m in. >> all right, jim. i ask you, what do stock market investors want we need to watch the 2-year now? >> yeah. 2-year's so comfy. it's a lovie blanket >> thanks. we will see you in just a couple of minutes. "ua b" gs.uy >>sqwkoxwill be right back - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing. >>> welcome back to "squawk box" this morning big tech getting positively slammed in yesterday's market selloff with apple, microsoft, alphabet, amazon and meta losing about $500 billion in total market cap. here to talk about what is next for the

i'm almost afraid to ask diana olick, but what's the damage >> i'm going to blow your mind mortgage application increased last week for the first time in six weeks. that according to the mortgage bankers association. instead, it may be these abrupt swings in rates and uncertainty in the overall direction of the housing market the average rate on the 30-year fixed for conforming loans increased to 6.25% from 6.01% for loans with 20% down and that rate was 3% one year ago despite that, though, refinance applications rose 10% for the week at they were still 83% lower than the same week one year ago. part of that may have been due to the holiday adjustment the previous week for labor day. it also may have been that the very few borrowers remaining who could benefit from a refi finally got off the fence seeing that rates aren't coming down any time soon. mortgage applications rose 1% for the week but they were 30% lower than the same week a year ago. i couldn't read too much into that week bump higher. buyers are seeing one of the least affordable market in history. >> diana, this sounds like capitu

. >>> we have news this morning on the mortgage front we want to get over to diana olick. >> good morning. the big news yesterday was that the 30-year fixed crossed 7% these numbers are from last week rates did move higher still but not quite as high as they are right now. still, refinanced demand dropped to the lowest level in 22 year's years. down 84% than the same week one year ago why? because the average rate on the mba's survey with loans with conforming balances increased and that's for loans with 20% down that's the highest level since mid 2008 mortgage applications to buy a home fell 0.4% and were 29% lower than the same week one year ago potential buyers are contending with high prices although the annual price gains are now shrinking at a record pace due to the recent adjustment of rates. arms offer lower interest rates and can be fixed up to ten years. this week, we crossed into a new number that is over 7%. becky? >> all right, diana, thank you very much. 7% just two weeks after we crossed 6% obviously shaking things up. when we come back this morning, making