The sale of existing homes in the United States rebounded modestly in the month of February as a continued shortage of properties in the country’s housing market spurred the biggest jump of prices in a year.

The National Association of Realtors (NAR) on Monday released its report showing that the existing home sales in the United States increased 1.2 percent to a rate of 4.88 million units annually. That left the bulk of 4.9 percent drop recorded in January intact.

Lawrence Yun, chief economist at National Association of Realtors, said, “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels.”

Analysts believe the trend could lead to undermining the spring selling season.

Several economists had made forecast of home resales increasing to a pace of 4.90 million units in February.

Market analysts said that the sluggish sales of existing homes offer another sign that the economic activity in the country slowed significantly during the first quarter. Moreover, the development has further lowered the expectations that the Federal Reserve Bank will tighten its monetary policy and raise the interest rates in June.

The US dollar dropped against a basket of major currencies and the prices for the US Treasury debt were changed minimally.

The US housing index surged 0.33 percent, in consequence with a sbit firmer stock market. Shares of DR Horton, the largest homebuilder, added 0.25 percent. Lennar Corp increased 0.83 percent, while Pulte Group advanced 0.45 percent.