U.S. single-family homebuilding increased to a 10-month high in December, indicating some improvement in housing activity at the end of the year, though rising mortgage rates and an oversupply of new properties on the market could constrain recovery.

U.S. single-family homebuilding increased solidly in December, but further gains were seen limited by rising mortgage rates and a glut of new homes on the market. Single-family housing starts, which account for the bulk of homebuilding,