Reuters

U.S. existing home sales increased to a 10-month high in December, but further gains are likely to be limited by elevated mortgage rates and house prices, which are keeping many prospective buyers on the sidelines.

Home sales rose 2.2% last month to a seasonally adjusted annual rate of 4.24 million units, the highest level since February, the National Association of REALTORS® said on Friday. Economists polled by Reuters had forecast home resales would rise to a rate of 4.19 million units.

Sales surged 9.3% on a year-on-year basis, the largest increase since June of 2021. A total of 4.06 million previously owned houses were sold last year, the lowest number since 1995.

"Home sales in the final months of the year showed solid recovery despite elevated mortgage rates," said Lawrence Yun, the NAR's chief economist. "Job and wage gains, along with increased inventory, are positively impacting the market."

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