Purchases of new homes surged in April

Purchases of new homes rising

But mortgage rates climb

Purchases of new homes in the U.S. unexpectedly surged in April by the most in 14 years as buyers took advantage of the biggest decline in median prices since 1970.

Most economists continue to look for slow, but positive, economic growth over the next few quarters, with real GDP growth moving back up toward trend by late this year or early in 2008.

Rates Climb. The average 30-year fixed mortgage rate rose from 6.21% to 6.37% for the seven-day period ended May 24, according to Freddie Mac's Primary Mortgage Market Survey.

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