U.S. Previously Owned Home Sales Climb to Three-Month High

Sales of previously owned homes increased in April to a three-month high, led by a surge in the Midwest and indicating further improvement in the housing market during the busy spring-selling season, National Association of Realtors data showed Friday.

The increase caps a six-month period of greater-than-usual volatility in purchases and may indicate that the housing industry is returning to a more stable growth path on the back of solid hiring and cheap borrowing costs. At the same time, limited inventory is keeping prices elevated, while first-time buyers have been slow to enter the market, curbing housing’s contribution to economic growth.