pulte, lennar, d.r. horton, all of them jacking the average price up in the double digits. granted, the higher end doing better. but that is not all of it. builders can blame higher costs, but as we've said over and over, this is about zero supply on the market. investors ate it all up. jacked up the prices with cash. and left the spring market to regular buyers who face not just the sticker shock, but higher mortgage rates. >> yeah, that's an interesting point. steve liesman, so what's the takeaway from all of this? how are economists and, most importantly, the fed thinking about this. >> you know, i hate to disagree with diana, but not a lot, scott. it's interesting. we did our cnbc wrap it up where we take a number like this, a big change like this, a big unexpected number, and we plug it into our wrrapid update by moody's and come with no change. part of the revisions are up from february. but the economists, first of all, are not expecting a lot from this number. you can see the second quarter they're still looking for 3.4% growth. and the reason is because this number

the parking issues on mare island" >> reporter:vallejo civil engineer jill mercurio says although lennarvelopers puchased and lease land throughout mare islandcity streets were not a part of the deal >>"on walnut avenue the street, while it is still on lennar area, the city owns a right of way or easement over that, that makes all of those roads public roads so you and i can go drive on those areas" >> reporter:or park in this case >>"or in this case park" >> reporter:congressman thompson's communications director had this to say about the parking controversy >>"our interest is simply is making sure our constituents, many of whom are elderly, have a place to park and we simply talked with the va, asked for their help with the situation, and the site coordinator with the va assisted us" >> reporter:liza ambrose is on vacation, couldn't get her response on camera. however her co-worker kellie meir had this to say >>"if it wasn't for our parking situation we wouldn't be parking there so we thank you for investigating for us" >> reporter:on mare island in vallejo haaziq amdyun kron4news the

the parking issues on mare island" >> reporter: vallejo civil engineer jill mercurio says although lennarperty developers puchased and lease land throughout mare islandcity streets were not a part of the deal >>"on walnut avenue the street, while it is still on lennar area, the city owns a right of way or easement over that, that makes all of those roads public roads so you and i can go drive on those areas" >> reporter:or park in this case >>"or in this case park" >> reporter:congressman thompson's communications director had this to say about the parking controversy >>"our interest is simply is making sure our are elderly, have a place to park and we simply talked with the va, asked for their help with the situation, and the site coordinator with the va assisted us" liza ambrose is on vacation, couldn't get her response on camera. however her co- worker kellie meir had this to say >> parking situation we wouldn't be parking there so we thank you for investigating for us" haaziq amdyun kron4news [ man ] they're big. strength we can count on. same with aladdin. the biggest in bail. no one

david: what happened to lennar? >> the same sort of thing. a, some good earnings coming out about a week or two ago and the stocks jumped and failed. and technical world, that is not a good thing. bad action on good news, not a good thing. david: pulte, some people look at pulte homes and looking for details inclusive and they see this 2.9 price earnings ratio. this looks like the bargain of the century if you're looking at pe. why is that about pulte? and what, you know, what could be the problem with a 2.9 pe? >> well, sometimes when we look at these pes, something is maybe too good to be true. and, on the dividend side, when you see a dividend yield, maybe 10% on stock in sector yielding 3% other 2%, you think something is wrong and dividend may not be safe. the same with the p-e ratio. the e my not be safe. david: earnings might not come in and that might be a problem? >> not something that i can forecast though. not my area. david: michael kahn, "barron's" column it. thank you very much. liz? liz: david, it is easy as pie. dunkin' donuts

i like momentum like homebuilders like lennar and toll brothers. tracy: shaun, let's play off that.turn around and people saying, yeah you know i'm done taking rick. i want dividend action. i'm going back to the tried and true, right? >> absolutely. it is a safer way to play it. if you think about it the stock market returns nine to 11% a year on average. we came out with above average year. you see below average years. sometimes dividend stocks get you a third or halfway there to your dividend to begin with. that is much more stable piece after stock portfolio is the dividend income. a lot of baby boomers starting to retire are wanting these dividend to supplement that income, truth be told a lot of them haven't saved as much as their parents did so they need additional income anyway so safer way to do it. neil: tracy: david what is old is knew again. we focus on fundamentals. we get lost because some guy says we should go invest in momentum stocks, right? everyone comes back to the grain again. here we are, back to the tried and true. should that be where people are focusing on? >