However, mortgage rates have been on the rise, and recent housing data have been raising red flags.

"A number of housing indicators―including new home sales, housing starts, and new purchase mortgage applications―have softened in recent months relative to their trend over the past year," wrote Goldman Sachs' Kris Dawsey and Marty Young in a note to clients on Monday. All of this is illustrated in Goldman's proprietary housing sector current activity indicator (CAI), an aggregation of various housing market series, which has turned down.

Worries really piqued in the wake of Friday's awful new home sales report. Here's UBS's Sam Coffin with the recap: