Mortgage rates

Mortgage rates posted a fourth consecutive week of increases, but Freddie Mac remains bullish in its outlook for this spring's home purchase season.

Purchase mortgage applications, which until now were unaffected by the recent rise in interest rates, fell by 4% on a seasonally adjusted basis from last week, according to the Mortgage Bankers Association.

Sales of new homes unexpectedly rose in March, climbing to a 16-month high to cap the first quarter with a third straight increase that reflects a boost from lower borrowing costs.

Homebuilder stocks are slipping after sales of previously owned homes fell more than forecast in March and KBW cut its rating on D.R. Horton shares.

After a strong February, existing-home sales took a U-turn in March. While buyer conditions heat up and mortgage rates remained low, consumers took a patient approach — especially in the expensive West Coast markets.

If favorable interest rates and rising consumer incomes continue, market potential for home purchases will be boosted in the short term, according to First American Financial.

Sales of previously owned homes eased more than forecast in March, suggesting the housing market is still finding its footing after a weak 2018.

New-home construction unexpectedly fell in March, decelerating to the slowest pace since May 2017 and suggesting builders remain wary even as lower mortgage rates and steady wage gains offer support to consumers.

Economic growth will slow in 2019, but conditions will help home sales hold steady, with mortgage volume now being projected to rise over 2018, according to Fannie Mae.

Steady interest rates could lift the housing market going forward, but for now there is an ongoing slump in single-family home construction authorizations along with maintenance and remodeling activity, according to BuildFax.