Home sales and prices rose in January as eager homebuyers returned to the market

(CNN)– Falling mortgage rates encouraged eager buyers in January.

Existing home sales beat expectations, climbing 3% from the month before, according to the National Association of Realtors.

The cost of homes also went up. The median price jumped 5% from a year ago to $379 thousand. January was the seventh straight month of annualized price gains.

But this might be short-lived as mortgage rates continue to increase, inching closer to 7%.