cnbc's diana olick has what you need to know if you're in the market for a new home. >> reporter: in las vegas saturday, a tale of two open houses. >> come on in. >> reporter: this home just listed for $395,000 saw a steady stream of potential buyers this home listed for a steeper $510,000 saw nearly no one. >> under 350,000 and 400,000, there is multiple offers. over 500,000 it slows down a little bit. >> reporter: real estate agent noah herera said he priced this fixer up to sale. on monday he received an offer at full price. competition for affordable homes is fierce there are 44% fewer homes for sale new compared with pre-pandemic levels. last summer, as mortgage rates rose, home prices began to dip. but now strong spring demand is reheating prices, which have been climbing every month this year. >> now is this one at the higher of our price point or the lower? >> reporter: home shopper amelia shaw said higher prices are tough, but her rent is worse. >> my apartment shot up $600 in the last year i lived there so it's time for a house for that price that i'm paying. >> reporter: a

we have diana olick with more on why the sector is looking different this year. >> this has been an unusual spring market to say the least and what better place to start than home prices which are most unusual. after jumping 40% nationally in the first two years of the pandemic, they started cooling off with sharply higher mortgage rates. they fell at the fastest pace on record into the fall now they appear to be rising yet again. why? roller coaster mortgage rates and average on the 30-year fixed hit a dozen record lows in the first two years of the pandemic and doubled in the first six months of last year before peaking october. in january, however, it fell back hard and that brought buyers out heating up demand supply is still critically low new listings were down 21% in april. sellers don't want to give up the record low rates so prices turned higher, especially in markets like vegas the price swings have had an impact on homeowner wetalth after two years of equity, some of that melted away. the average mortgage holder has $185,000 of tapable equity it is down more than $210,000 from la

diana olick is here to explain what's happening. >> these are upfront fees that can be folded into yournterest rate based ton borrower's risk they were designed to protect fannie and freddie's finances as well as the taxpayers that back them after the great recession, these fees increased after a recent review, they're changing again to bolster the finances as well as help lower income minority borrowers get into homeownership starting today, the fees will increase cost to borrowers overall. that's in general by four basis. if you were at 6.5, that becomes 6.54%. but the fees are different depending on the down payment and credit score and some borrowers with lower incomes will see the fee reduced while others will see it increase recent reports made this highly political. so much so that the director sandra thompson who oversees fannie and freddie issued a statement saying higher credit score borrowers are not being charged more so that lower credit score borrowers can pay less the updated fees generally increase as credit scores decrease for any given level of down payment what is hap

cnbc's diana olick is here. what's going on and where is it happening? where is it hitting the hardest? >> home sales are slowing down for several reasons but demand isn't actually one of them. there's plenty of demand out there, very little supply, especially at the lower, more affordable end of the market. sales were down in april at all price points but they were down steepest for homes priced over half a million dollars. the supply of homes for sale did improve slightly because there are affordable homes on the market. new listings have actually been down around 20% compared with a year ago. then you've got mortgage rates, more than doubled from record lows over the past year and a half, and while they eased up a little bit in the beginning of the year, in march, when these april deals were inked, they were back up near highs from before. you're seeing the lot of differences now when it comes to what people can afford, and what they can't. what you said about home prices, one note on that, the realtor's report a median home price, and that is, you kn

in virginia diana olick joins us from arlington, virginia. diana? buildings will be powered by 100% renewable energy from a solar farm i sat down for an interview on both the building and back to office >> i think it's important for a company like amazon to demonstrate sustainability, to talk about where we're testing things, and also send demand signals to the market that these are products and services that we want. >> reporter: and the message resonates across 2 million square feet of sustainable space at hq2 >> this is mass timber, an important part of our sustainable materials. >> reporter: from the ceiling to the floor, there are 3,000 tinted glass windows for cooling and a light that tells workers when is a good time to open them the building is using special coming technology that helps save about 7.5 million gallons of water per year. >> it's more water needed to fill the lincoln memorial pool >> reporter: there's plenty of amenties for the 8,000 workers who will be here, at least three days a week, by the end of the summer >> we're still c

housing data to start the hour we'll turn to diana olick. ding home sales were unchanged in april from march, according to the national association of realtors. slightly below expectations. compared with a year ago, though, they were down 20% these pending sales are measured by signed contracts on existing homes. people out shopping in april when mrts mortgage rates were mixed. the average on the 30-year dropped and then bounced back up and hovered 6.5% and higher for the month. there was a regional disparity in the numbers sales improved everywhere except in the northeast where they dropped sharply. the realtors blaming the weakness on lack of supply we saw that earlier this week on sales of newly built homes which were stronger. the builders benefitting from the lack of supply on the existing side and just one last night on mortgage rates, the 30-year fixed did cross 7% this week on concerns over the government defaulting on its debt potentially back to you guys. >> diana, really quick, we had a nice chat with doug early of toll and talked

. >>> that's having an impact on mortgage rates let's get to diana olick for the latest diana? >> kelly, the average rate on a 30-year fixed has been climbing sharply on concerns over the debt limit and new comment, conflicting comments from kashkari and bullard over the future of interest rates bond yields took off on that the average 30-year fixed went up to 6.95 and up 40 basis points in a week all according to mortgage news daly and after rates rose just a little this one's going to hurt more. if you're buying a $400,000 home with 20% down your monthly payment went up $100 in just one week they're con fending with sky-high prices and they're more sensitive to small-rate moves than they have in the past zillow posted that if a deal on the 30-year picked the average rate could go over 8%. >> i can't tell if it will go over 8%, if a deal is reached i'm shocked that the ten-year is as high as it is and we had luren on thursday or friday and he said if we had historical norps, but the it would be so low reit now it should be at 6% right now, not seven. >> everything is different

than in new york diana olick has more hi,dy. >> reporter: you're right. it's got bigger problems the office vai conditioncy rate soared 22% in the first quarter compared with manhattan at 17% this represents 15 million square feet of empty offices, 61% more than prepandemic l.a. leasing buys options al very low. what is being leased is not used very much. average occupancy is 49% that's lower than the national average. west l.a., which has less of crime and traffic, while downtown is finance and law. now the reits with the biggest exposure are doug lace emmett, kilroy realty and hudson pachlkt hudson pacific down closer to 50%. douglas emmett by far the most exposure, but all of these are heavy in l.a as for everyone else, there is a flight to quality. the buildings that offer the better amenities, they're faring better than older buildings which are mostly downtown. >> you talk about how it compares with new york how does it compare with the median city across the country in terms of office vacancy and occupancy? >> reporter: well, it's worse. the issue

sara >> all right diana, thank you diana olick. to take a pause on the market, we're pulling back a little, but the story has been strength especially we know the tech heavy nasdaq highest level now since august 2022 which is just interesting because it continues to occur, first of all, as a surprise and above it is that the positioning has been bearish the speculative hedge funds and other speculators, net shorts s&p futures, near record levels. we've taken out the 2011 levels and now back to 2007 levels. that tells you the pain trade continues to be higher it's interesting that it's coming in the face of rising treasury yield and higher rates. >> the long bond above 4, first time since march 10-year 3.75 crazy numbers on the six-month we have to go back to 2001 and we know the reason for that. >> near 5.4 or something along those lines on the six month how is that figuring into things in terms of the debt ceiling and/or market reaction, which doesn't seem to be particularly strong at this point one way or the other? >> i feel lik

diana olick. we'll react to the numbers and home denot a moment.tart with you in austin, texas, ahead of a big interview. we do not hear from elon musk very often what are you expecting as we go into the shareholder meeting >> yeah. well, you know, no shortage of topics to discuss despite how often we hear from him because things in his different worlds change quickly the focus today in part will be tesla, its annual shareholder meeting will take place aprior o our interview and we'll ask him about the automaker and follow up on comments he made during the conference call, not that many weeks ago, and tesla reported earnings and anything said during the meeting itself that is news worthy. even since the last time he communicated broadly with somebody in terms of an inte interview linda yaccarino joining twitter, shareholders want to hear an answer to, are you spending more time with tesla now that you have more time on your plate once you hand over the reigns as ceo of twitter. so sara, no shortage of topics, whether tesla, twitter, spacex, starlin

diana olick joins us from los angeles and she has that story diana?d, los angeles may be a smaller office market than new york but the vacancy soared to 22.5% in the first quarter compared to manhattan at 17% this represents 50 million square feet, 61% more pre-pandemic l.a. leasing volume in q1 was very low what is leased is still not being used very much average occupancy in l.a. is 49%, slightly lower than the national average l.a. is where we saw those two big brookfield defaults. the market is pretty bifurcated. l.a. has faring better, tenants and tech, advertising and media, while downtown is finance and law. reits with the biggest exposure are douglas emmitt and kilroy and hudson pacific hudson pacific down around 50% douglas emmitt, the most exposure, but all of these are heavy in west l.a. or other areas surrounding downtown now, as with everywhere else, is there is a flight to quality with newer amenities seeing more demand and older buildings suffering more back to you. >> what are your expectations over what time period is all this restruc

. >> all right diana olick with the latest, sth thank you very much. >>> ahead on the show, a differenty we're talking scott's mir mirac miracle-gro. best upgrade in a month. we'll trade smg and other big movers of the day. our the-ocrestk lunch is coming up we'll be right back after this - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. (cecily) you're looking pleased with yourself. (seth) well, not to brag, but i just switched my whole family to verizon. (cecily) oh, it's america's most reliable 5g network. (seth) and it's only $35 a line. (neighbor) i got that deal too. (seth) oh hey, bragging buddies! (neighbor) my man! (cecily) this i don't need. (seth) you should give me a call! (vo) visit your verizon store and save big during our spring savings event. get the disney bundle with disney+, hulu, and espn+ included. all for just $35 a line. the savings you want. on the network worth bragging about. verizon new pr

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diana olick is here to break that down. what are the new numbers? >> these were so-called pending home sales, that's the number of signed contracts on existing homes signed in april. it was lower than expected. it was down 20% year over year. if you look at the why, it's because there is so little supply in the existing home market. in the existing market, people don't want to put their homes on the market because mortgage rates are so much higher now. so many people have in the 2%, 3% range, they don't want to trade that to the 7% range and buy another home. we have very little inventory. mortgage rates were in the 6.5% in the 30-year fixed range, that's not the case today. in the last two weeks, we've seen mortgage rates really move higher just in anticipation of this debt issue. and so what that means is now we're at about 7.12% on the 30-year fixed. what does that mean to a buyer? if you are buying a home and you are getting a $400,000 mortgage, your monthly mortgage payment two weeks ago would have been $168 less than it is today. that's real m

our own diana olick joins us this morning to talk about it. fascinating to hear him sort of discuss this generational runway they have. and then compare that to the multiple, which still trades at a discount to the market >> yeah. it doesn't make a whole lot of sense, does it, when we think about. but he's completely right when he talks about the supply/demand story. toll brothers on the luxury end of the market, it has an advantage because its buyers coming in aren't entirely mortgage dependent if they are, they can perhaps swallow a little more of the higher rates than entry-level buyers he also said they're seeing a fair amount of entry-level buyers when you talk about the markets discounting toll, saying they have this exposure to california, the inventory in california is just awful i was there earlier this week. i saw a teardown in venice on a tiny lot being listed for $2.5 million. so, you know, toll really does fit in nicely in there because they have that much product. >> so, how does it get fixed, diana? mortgage rates continue to cl

diana olick joins us from met park in virginia with an exclusive preview. yeah, these buildings will run with zero operational carbon emissions and will be powered by 100% renewal energy from a nearby solar farm. that's just the beginning. i sat down with amazon sustainability chief for an exclusive interview on both the building and return to office. >> i think it's incredibly important to talk about where we're testing and trialing things to send demand signals to the market that these are products and services that we want. >> reporter: and the message resonate as cross 2 million square feet of sustainable space at hq2. >> this is mass timber. >> reporter: from the ceiling to the floor which was provided by carbon cure, a clean cement company backed by amazon's climate pledge fund. there are 3,000 tinted glass windows for cooling and a light that tells workers when is a good time to open those windows. the building is also using special cooling technology that helps save about 7.5 million gallons of water per year. >> more than needed to fill the lincoln

sharing jumping after well above expectations diana olick is on the call >> the ceo said i feel quitek about improving the zillow user experience and connecting them to products. i'll get to that in a second, but a nice beat in q-1 on revenue and addressed ebita. breaking it down, residential revenue decreased 14% due to weakness in the overall housing market that's the part he can't control. rentals revenue increased 21% year over year, thanks to strong traffic in multifamily, and mortgage revenue dropped 43%, due to higher interest rates, resulting in less demand now, zillow is getting heavily into a.i part of that is affordability tools. barton said in the release, "our powerful brand and strong balance sheet put us on solid footing as we build the housing super app and help get more people home. now, zillow just announced a new chatgpt feature to go up in the game home searches, and of course, redfin just announced the same thing this afternoon. melissa? >> all right, diandiana, thank u the newest thing, it's the biggest fad, a.i >> i do like the quarter i like the name. i like th

joining me now is cnbc's diana olick. what is doing to l.a.? >> it is meaning a lot of distress.id hit the high of 17% vacancy but l.a. just hit 22.5%. and this is about 61% more than pre-pandemic levels. and what is being leased is actually not being used very much. the average occupancy, the people going into work every day, even if the office is leased, is 49%. that is lower than the national average in l.a. so we've seen distress in the market and it is worse in downtown l.a. compared to west l.a. where you have more tech and media. but for this entire market, it is going to mean a lot of distress ahead for investors in commercial real estate. >> so there is also a housing crisis in los angeles. a lot of people can't afford to get housing in the city or the county and it is creating a homelessness crisis, in part. that is the issue. any taum about converting office spaces into residential spaces? >> reporter: well that is interesting. i'm based in d.c., and there is a fair amount of office conversion from the old offices that were in government buildings to apartments which a

diana olick joins us on set.lways lovely to have you. >> my home is your home. mortgages, demand from home buyers fell last week down 2% for the week and 32% from a year ago despite the fact that average rate on the 30-year fixed for conforming fell. the spread between conforming and jumbo rates, jumbo higher balanced mortgages, has been shrinking as banks which hold the loans have had less of an appetite for risk not to mention liquidity issues so the spread 13 basis points last week after as wide as 64 boasis points in november of last year. whirts mortgage rates don't follow the fed funds they are influenced in december of 2021 when powell started talking about raising rates, the average was 3.25% by the first hike, up to 4.25%, june 6% and by the end of last october, peaked at 7.37% all according to mortgage news daily. if you were buying a $400,000 home, around the national median price, 20% down, your monthly payment went from $1380 in december of 2021 to $2,039 today. that's a difference of $659 a month. t

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diana olick has been doing just that and she joins us right now with this month's sectornomics. >> findfull. commercial real estate has taken the brunt of rising rates and that's why the real estate sector is an underperformer. in six months, the group is down over 8%. the s&p 500 has gained 2% in the same period. but there are still some bright spots for investors on the hunt for yield. we took a look at names in the sector that are outperforming the s&p in the last six months and offer an above average dividend yield there is only a handful of stocks in positive territory during that time but they come from a range of industries we'll start with invitation homes. that stock is up 4% in the past six months with the yield above 3% all thanks to strong rental demand in a still very pricey housing market next we have the largest holding in the real estate sector, industrial ware housing giant prologis it is up 5% in that time period and has the yield around 2.9%. and finally, there is healthcare focused well tower, which has gained more than 7% in three months and has a dividend yield of

specifically now the housing market that has been a pretty unusual spring season to say the least diana olickmorning, becky, and what better place to start than home prices, which have really been the most unusual after jumping over 40% nationally in the first two years of the pandemic, they began cooling off last summer due to sharply higher mortgage rates. they actually fell at the fastest pace on record now they appear to be rising yet again. why? roller coaster mortgage rates. the average on the 30-year fixed hit more than a dozen record lows in the first two years of the pandemic, and then more than doubled in just the first six months of last year before peaking last october in january, however, it fell back hard, and that brought buyers out heating up demand again, but supply is still critically low in fact, new listings were down 21% in april year-over-year, potential sellers don't want to give up their likely record low rates, so prices turn higher again, especially in markets like las vegas where they fell the hardest. now, the price swings have had an impact on homeowner wealth, af

negative months in a row we also have april existing home sales out and for that, we aim east to diana he olicksonally adjusted annualized rate of 4.28 million units along expectations sales down just over 23% year over year. and realtors are blaming much of it on still tight supply at the end of april there were 1.04 million homes for sale. that is up just 1% from the year before, but at the current sales pace, it represents a 2.9 month supply, six months is considered a balanced market. the median price of a home sold in april was $388,800, down 1.7% from april of last year. but prices are getting very different regionally they were higher in the northeast and midwest, the midwest being the most affordable region. prices fell in the south and west where prices had been hottest, where demand was hottest and buyers are priced out. the median is also being skewed by what is selling and sales are weaker on the higher end of the market above half a million dollars. there is also concern in the housing market if an agreement isn't reached on the debt ceiling, mortgage rates could rise sharply and a

but will clearing this hurdle have any impact on mortgage rates, which are now back over 7% and diana olick these two events. diana? >> well, yeah, joe, it's all about treasuries given that rally expected today, they'll likely come down a bit, but mortgage rates have been on a tearing higher some of it over concern over the debt ceiling, of course. but a lot of it because of recent indicators showing the economy isn't cooling off as much as the fed might like take a look. the average rate on the 30-year fixed started at the last low of 6.49%, on may 11th and in the course of two weeks, shot up 65 basis points to 7.14%, as of friday. it was the first time rates crossed 7% since early march, and even in march, rates were only that high very, very briefly. so in real money, that means if you were taking out a $400,000 mortgage to buy a house, your monthly payment rose by almost $175 bucks in just two weeks all right, so what next? well, matthew graham, ceo of "mortgage news daily" pointed out a debt ceiling deal would now allow the u.s. government to issue more treasury bonds, which it couldn'

we want to bring our own diana olick in tell us what we should think about this >> it's just what ricke breakout for april, you're seeing a big drop in multi-family that could be due to finance and oversupply in the market we saw an okay in the bump up, 1.6% for single-family housing i thought it might have been more than we saw in the builder sentiment yesterday. we haven't been in pos titive territory since last summer. the builders are saying they're getting this great demand because there's so little supply on the existing side listings were down 20% year over year that's new listings. you would think the builders might put up more and there could be issues with getting construction loans due to banking issues >> diana, thank you. steve, how about you >> we have a federal reserve trying to slow the economy the likely things are things like housing sector. and nobody has figured out how to solve this puzzle, that we need more housing, where housing never got back to the growth in households and we can't quite figure it out. meanwhile you would think housing would even fall more but

i'm diana olick with your weekly read on mortgage demand. erratic to say the least lately and that's having an outsized influence on home buyers. in addition, jumbo mortgage rates are taking a hit from the banking crisis mortgage applications to purchase a home dropped 2% last week, compared with the previous week that according to the mortgage bankers association's seasonally adjusted index demand was 32% lower than the same week a year ago this despite the fact that the average rate on the t30-year fixed to 6.5% from 6.55% the rate was 5.36% a year ago. the average rate for jumbo loans, that is higher balance mortgages, was slightly lower at 6.37%. that has been shrinking as banks that hold the loans on their balance sheets had less of an appetite for risk, not to mention liquidity issues the spread was 13 basis points last week after being as wide as 64 basis points in november of last year. applications to refi a home loan increased 1% for the week, but were 51% lower than the same week a year ago. there are very few borrowers who can st