Sales of previously occupied US homes rose in February as easing mortgage rates and more properties on the market encouraged home shoppers. Existing home sales rose 4.2% last month from January to a seasonally adjusted annual rate of 4.

Sales of previously occupied U.S. homes rose in February as easing mortgage rates and more properties on the market encouraged home shoppers. R

Homebuilder and mortgage lending stocks gained some steam after existing home sales unexpectedly rose in February, rebounding from a January that suffered from severe weather. The iShares U.S. Home Construction ETF (BATS:ITB) rose 1.

After climbing to just above 7% in mid-January, the average rate on a 30-year mortgage has been mostly declining, loosely following the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Mortgage rates rose this week as lenders steel themselves against a foggy economic future. The Federal Reserve predictably voted to hold the federal funds rate steady during central bankers’ March 19 meeting and spoke of a need for more solid data before making policy shifts.

The Federal Reserve's decision on Wednesday to leave interest rates unchanged will likely keep mortgage rates stable during the spring selling season as uncertainty grows around the U.S. economy, housing experts said.