Sales of previously owned homes jumped at the start of the year as buyers rushed to purchase homes in the face of record-low inventory and climbing mortgage rates.

Existing-home sales rose 6.7% in January from the prior month to a seasonally adjusted annual rate of 6.5 million, the National Association of Realtors said Friday, with home sales increasing in regions across the country. January sales fell 2.3% from a year earlier.

The housing market remains extremely competitive. Rising mortgage-interest rates in recent weeks have prompted buyers to move quickly in case rates climb further, real-estate agents say. Homes are frequently selling within days for more than their list prices.

Still, the shortage of homes on the market is holding back the number of sales, economists say. On top of that, some buyers have been pushed to the sidelines as rising home prices and higher interest rates have made homeownership less affordable.... Read More: WSJ