The Dow rose 180 points to 11577 during another day of wild swings for the stock market
The Dow lost 108 points to close at 11401 as investors worried that Greece will default on its loans.
Fixed mortgages for 30-year term climb from 4.81 to 4.86. Rates for 15-year fixed mortgages rise slightly to 4.09 percent.
Home construction rose 10.5 percent in August from a month earlier to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That's the highest level since April.
US home prices were up 0.8% but government tax credits bolstered the housing market and incentives have expired.