By Lucia Mutikani

WASHINGTON (Reuters) -U.S. existing home sales increased to a seven-month high in September, but rising economic uncertainty and a stalled labor market could limit the boost from easing mortgage rates.

Home sales rose 1.5% last month to a seasonally adjusted annual rate of 4.06 million units, the highest level since February, the National Association of Realtors said on Thursday.

Economists polled by Reuters had forecast home resales would advance to a rate of 4.06 million units. Sales increased in the Northeast, South and West regions, but declined in the Midwest. Home sales jumped 4.1% on a year-over-year basis.

“As anticipated, falling mortgage rates are lifting home sales,” said Lawrence Yun, the NAR’s chief economist. “Improving housing affordability is also cont

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