Sales of previously owned U.S. homes unexpectedly rose in January to the second-highest level since early 2007, indicating the industry will keep prospering.

Retail sales increased for a third straight month in January as Americans kicked off 2016 by spending freely on cars, clothing and online merchandise.

U.S. retail sales will grow just 3.1% in 2016 as consumers shift more of their spending to experiences, rather than the mall, according to the National Retail Federation.

Purchases of new homes in the United States surged in December to the highest level in 10 months, closing out the best year for housing since 2007.

Purchases of previously owned U.S. homes rose more than projected in December, helped in part by warmer weather and wrapping up the best year since 2006.

Sales at U.S. retailers declined in December to wrap the weakest year since 2009, raising concern about the momentum in consumer spending heading into 2016.

New homes in the United States sold at a slower pace than projected in November, a sign momentum in housing is cooling as the year draws to a close.

Sales of previously owned homes slumped in November to the lowest level since April of last year as a change in industry rules lengthened the amount of time it took buyers to close on a deal.

Contract signings to purchase previously owned homes rose less than forecast in October after declining in the prior two months, showing residential real estate is cooling heading into the quieter selling season.