US existing home sales jump to 4.17 million in May

Sales of previously owned homes in the United States accelerated sharply in May, reaching their highest level since December and providing a dose of optimism for the housing market. The National Association of Realtors reported on Tuesday that existing home sales rose 3.2 percent from April to a seasonally adjusted annual rate of 4.17 million, a figure that exceeded economists' forecasts.

The gain marks the strongest year-over-year growth pace since last September and suggests some momentum is building after a tepid start to the spring selling season. Lawrence Yun, the association's chief economist, said the data shows more Americans are on the move and called it great news for the housing market and the economy. He attributed the improvement to better affordability, driven by mortgage rates that, while having risen in recent months to top 6.5 percent, remain below their levels from a year ago.

The sales increase coincided with a continued climb in home prices. The national median sales price for an existing home rose 1.3 percent from a year earlier to a record $429,300 for the month of May. Inventory also saw a slight increase, with 1.55 million unsold homes on the market at...