U.S. existing home sales rebound in December

Existing home sales in the U.S. bounded back in December 2014, the National Association of Realtors (NAR) said Friday.

Total existing-home sales, which are completed transactions that include single-family homes, townhouses, condominiums and co- ops, rose 2.4 percent to a seasonally adjusted annual rate of 5.04 million in December from a revised-down 4.92 million in November.

Sales were 3.5 percent higher than the year-ago level, and above year-on-year levels for the third straight month, said the NAR.

Home sales were measurably better in the second half of 2014 than the first six months of the year, said Lawrence Yun, NAR chief economist. "Home sales improved over the summer once inventory increased, prices moderated and economic growth accelerated."

Total housing inventory at the end of December dropped 11.1 percent to 1.85 million existing homes available for sales, which represents a 4.4-month supply at the current sales pace.

According to Freddie Mac, the average commitment rate for a 30- year, conventional, fixed-rate mortgage dropped to 3.86 percent in December, the lowest level since May 2013.

Existing home sales account for a larger share of the market than new home sales. Endite