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New home sales soar 20% in August to a three-year high

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  • Sales of newly built homes rose a much larger-than-expected 20.5% in August compared with July, according to the U.S. Census.
  • That’s despite mortgage rates that are higher than they are today.
  • The median price of a new home sold in August was $413,500, in increase of 1.9% year over year.
New home sales jump

Sales of newly built homes rose a much larger-than-expected 20.5% in August compared with July to the highest level since January 2022, according to the U.S. Census. It is also the largest one-month gain since August 2022. Sales were 15.4% higher than August 2024.

This count is based on people out shopping in August and signing deals, when the average rate on the 30-year fixed mortgage was higher than it is today. That rate started August at 6.63%, according to Mortgage News Daily, and didn’t really move much during the month.

The sharp decline in rates began in September, when it fell to a three-year low of 6.13% the day before the Federal Reserve cut its lending rate, and then moved higher to where it is now at 6.37%.

Given that rates hadn’t fallen yet, it’s curious that August sales jumped so high. Part of the answer may be in the survey itself.

“We were expecting a gain but not that large,” said Robert Dietz, chief economist at the National Association of Home Builders. “Always important to remember the margin of error for new home sales is large. We’ll need to wait for revisions next month and the September data point to see if this is smoothed out.”

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Homebuilder analyst Ivy Zelman of Zelman & Associates said the number was “directionally right, but the magnitude was way too high.” She also noted that the Census report has a very small sample size and the big public builders, who together have 60% market share, don’t participate.

Zelman conducts her own survey, which has a higher sample size spanning 15% of homebuilders, and it showed a sales increase of 6% year over year, she said.

While builders have talked a lot about cutting prices and incentives, the median price of a new home sold in August was $413,500, in increase of 1.9% year over year. In a separate survey on builder sentiment from the National Association of Home Builders, 39% of builders reported cutting prices in September, up from 37% in August and the highest percentage in the post-Covid period.

New home sales were strongest in the Northeast, where overall new construction is low, so swings can be large. It was also strong in the South, where homebuilding is busiest. Sales, while higher, were weakest in the West, where prices are highest.

“While a volatile figure each month and always best to smooth out, I have to believe that the elevated level of home builder incentives was the main catalyst for the large upside surprise to new home sales,” wrote Peter Boockvar, chief investment officer of One Point BFG Wealth Partner.  “And we’ll, of course, see the impact of lower mortgage rates when the September figure comes out, but keep in mind, if mortgage rates continue down … builders will then reduce the pace at which they are implementing incentives and thus possibly offsetting the benefit of lower mortgage rates for new homes.”

Strong sales took inventory down to a 7.4-month supply in August from a 9-month supply in July, a nearly 18% drop. Single-family housing starts and permits slowed in August both from July and from August of last year. This would seem to indicate that builders expected slower sales.

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Disney raises prices for streaming packages

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  • Disney announced on Tuesday that it will be hiking the prices of many of its subscriptions by $2 to $3.
  • The new prices will take effect Oct. 21.
  • The price hikes come as the company faces intense scrutiny over its handling of “Jimmy Kimmel Live.”
Thomas Fuller | Lightrocket | Getty Images

Disney on Tuesday unveiled price increases for its streaming subscription packages beginning Oct. 21.

The stand-alone Disney+ ad-supported plan will see a $2 increase to $11.99 per month, while the premium no-ads plan will jump $3 to $18.99 per month or get a $30 annual hike to $189.99 per year.

The Disney+ and Hulu ad-supported package will increase by $2 per month, and both of the bundles with Disney+, Hulu and ESPN will see a $3 monthly increase. The packages with Disney+, Hulu and HBO Max will also both increase by $3 per month.

The NFL+ plans will remain at the same pricing.

The company previously alluded to the price increases on its third-quarter earnings call, adding that it expects a modest increase in Disney+ subscribers in its fourth fiscal quarter. Disney last raised prices for its packages in October 2024, with most plans increasing by $1 to $2.

The price hikes come as the entertainment company has faced intense scrutiny for its handling of “Jimmy Kimmel Live!” after Disney subsidiary ABC pulled the show off air last week over the host’s controversial comments about the alleged killer of conservative activist Charlie Kirk.

The company announced nearly a week later that the show would return to air on Tuesday, after viewers and late-show hosts criticized Disney for its actions.

In the interim, some fans took to social media to announce they were canceling their Disney+ subscriptions in solidarity with Kimmel.

Disney did not immediately respond to CNBC’s request for comment on the price changes.

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Ford offers special financing to riskier F-150 buyers with lower credit scores

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  • Ford is attempting to boost sales of its crucial F-150 pickup truck before the end of the third quarter by offering special financing to consumers with less-than-perfect credit ratings.
  • The move includes offering consumers with subprime credit — those with a FICO score below 620 — lower interest rates offered to those with quality scores.
  • Such promotions aren’t unprecedented and aim to make vehicles more affordable for more buyers as well as decrease inventory levels, but such borrowers are considered more likely to miss payments.
Ford-150 pickup trucks are displayed for sale at a dealership on March 24, 2025 in Austin, Texas. 
Brandon Bell | Getty Images

DETROIT — Ford Motor is trying to boost sales of its crucial F-150 pickup truck before the end of the third quarter by offering special financing to consumers with less-than-perfect credit ratings.

The move includes offering consumers with subprime credit — those with a FICO score below 620 — lower interest rates that are typically offered to those with quality scores, the automaker’s Ford Credit financial arm confirmed Wednesday.

Such promotions aren’t unprecedented and are an effort to make vehicles more affordable for more buyers and decrease inventory levels. But borrowers with lower credit scores are considered more likely to default or miss payments, especially during an economic downturn.

In addition to pickup trucks being crucial vehicles for the balance sheets of Detroit automakers such as Ford, their sales are closely watched as a sign of demand for skilled labor and small businesses.

A Ford Credit spokeswoman said the promotional rates do not factor into the organization’s actual “credit decisions” for consumers. She added that the specific rate will vary based on the terms of the agreement.

The Wall Street Journal, which first reported the program, said Ford uses a proprietary scoring model to assess a borrower’s creditworthiness that goes beyond a FICO credit score.

“We only finance customers we believe are creditworthy and have the capacity to pay. We have done these types of national programs in the past, extending a promotional rate to customers who meet our credit criteria,” Ford Credit said in an emailed statement to CNBC.

The average new auto loan rate was about 9% as of the most recent data from July, according to Cox Automotive’s Dealertrack. That included rates of around 18% to 20% for subprime or “deep-subprime” consumers.

Automakers such as Ford have historically attempted to limit financing to subprime buyers through their own financial lending arms, which have significantly increased in importance in recent years.

Ford Credit reports only 3% to 4% of its credit arm’s financing since 2024 have been to “higher risk” consumers. The average FICO score for Ford Credit’s customers was 748 through the first half of the year, down from 757, according to a recent public filing.  

Sales of Ford F-Series trucks, which include the F-150, were up 12.7% for the year entering September, however, were down 3.4% for the month in August, compared with a year earlier. Pricing for the 2025 F-150 ranges from around $39,000 to more than $100,000 depending on the model and options.

Affordability in the automotive industry has been a concern for many years, as interest rates have remained high and the average vehicle purchase price has increased to around $50,000, according to Cox.

Ford’s promotion comes as the Federal Reserve approved a quarter-point rate cut last week, with the central bank signaling the possibility for two more interest rate reductions in 2025.

Ford isn’t the only automaker offering deals on its pickup trucks. Stellantis‘ Ram Trucks brand is currently offering 0% financing for “well-qualified buyers” on select vehicles in its lineup, according to its website.

General Motors’ Chevrolet and GMC brands also are offering low-interest rate financing, as little as 0%, for well-qualified buyers through the end of this month when financed with its financial arm, according to their sites.

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Jimmy Kimmel returns after ABC suspension: ‘Never my intention to make light’ of Charlie Kirk’s murder

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  • “Jimmy Kimmel Live!” returned to air Tuesday night, roughly one week after the late-night show was suspended by Disney’s ABC broadcast network.
  • The program was initially pulled “indefinitely” following comments by host Kimmel during a show monologue that criticized members of President Donald Trump’s MAGA movement for their reaction to conservative activist Charlie Kirk’s killing.
  • “It was never my intention to make light of the murder of a young man,” Kimmel said Tuesday, getting choked up. “I don’t think there’s anything funny about it.”

“Jimmy Kimmel Live!” returned to air with an emotional monologue Tuesday night, roughly one week after the late-night show was suspended by Disney’s ABC broadcast network.

The program was initially pulled “indefinitely” following comments by host Kimmel during a show monologue that criticized members of President Donald Trump’s MAGA movement for their reaction to conservative activist Charlie Kirk‘s killing.

“It was never my intention to make light of the murder of a young man,” Kimmel said Tuesday, getting choked up. “I don’t think there’s anything funny about it.”

Kimmel went on: “Nor was it my intention to blame any specific group for the actions of what was obviously a deeply disturbed individual. That was really the opposite of the point I was trying to make. But I understand that to some that felt either ill-timed or unclear, or maybe both. And for those who think I did point a finger, I get why you’re upset. If the situation was reversed, it’s a good chance I’d have felt the same way.”

The comedian’s pretaped monologue marked the first time he had publicly addressed the matter.

“I’m happy to be here tonight,” Kimmel said to massive applause from the audience. “It’s been overwhelming. I’ve heard from a lot of people over the last six days. I’ve heard from all the people in the world over the last six days. Everyone I have ever met has reached out 10 or 11 times.”

JIMMY KIMMEL LIVE! “Jimmy Kimmel Live!” airs every weeknight at 11:35 p.m. ET and features a diverse lineup of guests that include celebrities, athletes, musical acts, comedians and human interest subjects, along with comedy bits and a house band.
Randy Holmes | Disney General Entertainment Content | Getty Images

Earlier Tuesday, Kimmel’s show posted a photo to Instagram with the caption, “We are back full of love.” Kimmel’s personal account posted a photo of the host with the late screenwriter and producer Norman Lear, who in 1981 founded People For The American Way, an organization dedicated to First Amendment rights.

Kimmel touched on free speech protections Tuesday during his remarks.

“This show is not important. What is important is that we get to live in a country that allows us to have a show like this,” he said. “I had the opportunity to meet and spend time with comedians and talk show hosts from countries like Russia, countries in the Middle East, who told me they would get thrown in prison for making fun of those in power. … They know how lucky we are here. Our freedom to speak is what they admire most about this country.”

Audience members leaving the taping described the monologue as “emotional” and described a warm reception from fans.

“It was just standing ovation after standing ovation,” said Veronica Ament of Fresno, California, who secured her tickets for the taping weeks ago. “My voice is almost gone.”

Political pressure

Disney said in a statement Monday it made the decision to suspend production of “Jimmy Kimmel Live!” following comments that were “ill-timed and thus insensitive.”

Those comments came during Kimmel’s monologue last Monday, in reference to Tyler Robinson, who is charged with fatally shooting Kirk on Sept. 10. Kimmel said then the “MAGA gang” was “desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.”

“In between the finger-pointing there was grieving. On Friday the White House flew the flags at half-staff, which got some criticism, but on a human level you can see how hard the president is taking this,” he continued, teeing up a clip of Trump on the White House lawn in which the president fields a question on Kirk but swiftly pivots to talking about construction.

Read more CNBC Jimmy Kimmel coverage

Kimmel’s suspension came amid statements from Federal Communications Commission Chair Brendan Carr that suggested ABC and its affiliate stations could be at risk of losing broadcast licenses over the comments.

Local station owners Nexstar Media Group and Sinclair both said they would preempt the show’s return on Tuesday, meaning many markets across the country were not able to watch the program through local channels. Together, the two companies own roughly 70 ABC affiliate stations.

“We are still on the air in most of the country, except, ironically, from Washington, D.C., where we have been preempted,” Kimmel said after a commercial break. “After almost 23 years on the air, we’re suddenly not being broadcast in 20% of the country, which is not a situation we relish.”

Gregg Donovan and Dandidi or “Hollywood Harlequin” display signs at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC

Kimmel was then joined via video by famed actor Robert De Niro, who was portraying an aggressive FCC chair.

Kimmel, ABC and Disney are the latest targets of Trump and his administration’s scrutiny of media companies, which has intensified during his second term marked by high-profile defamation lawsuits, the defunding of public broadcasters and regulatory interference from the FCC.

Trump posted to his Truth Social platform late Tuesday railing against Kimmel and saying his administration would “test ABC out on this.”

“Let’s see how we do,” Trump said. “Last time I went after them, they gave me $16 Million Dollars. This one sounds even more lucrative.”

In December, ABC agreed to pay $16 million — $15 million toward Trump’s presidential library and $1 million in legal fees — to settle a defamation lawsuit brought by Trump alleging anchor George Stephanopoulos made an inaccurate on-air assertion that the then-president-elect had been found civilly liable for raping writer E. Jean Carroll. Trump had been found liable for sexually assaulting and defaming Carroll. Trump denies Carroll’s claims that he attacked her.

Kimmel on Tuesday rallied his audience to continue to speak out against attacks on journalists by the Trump administration.

“It’s so important to have a free press, and it is nuts that we aren’t paying more attention to it,” he said.

Perry Caravello protests at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded, in response to the show’s return, on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025. “He should be off the air for another full week if not a full month to think about what he said.”
Gabriel Cortes | CNBC

Scenes from Hollywood

Ahead of the Tuesday’s show taping, protesters and supporters appeared outside the El Capitan Entertainment Centre in Hollywood.

“He should be off the air for another full week if not a full month to think about what he said,” Perry Caravello, a YouTuber who was protesting Kimmel’s return to air, told CNBC outside the studio Tuesday before the taping.

Meanwhile, Gregg Donovan, who donned a black top hat and red blazer, carried a laminated sign welcoming Kimmel back.

“This is America,” he said. “I don’t think free speech will ever really be threatened.” 

Kimmel’s show is filmed at the El Capitan Entertainment Centre on Hollywood Boulevard, across from the iconic TCL Chinese Theater. The Hollywood Walk of Fame takes up the sidewalk outside Kimmel’s venue, with names as diverse as Roy Disney, Eva Longoria, Kelly Ripa, Paul Rudd and Chris Pratt decorating the pavement.

A Jimmy Kimmel supporter displays a sign at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC
The El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded, is seen on the day of the show’s return to air, on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC
Gregg Donovan displays a sign at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC
Dandidi or “Hollywood Harlequin” displays a sign at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC

— CNBC’s Lillian Rizzo and Sara Salinas contributed to this report.

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