Jan 21 (Reuters) - D.R. Horton ( DHI ) beat Wall Street

estimates for first-quarter revenue and profit on Tuesday as a

persistent shortage of existing homes in the U.S. housing market

helped boost new home sales despite higher mortgage rates.

Shares of the construction company rose more than 5% in

premarket trade.

Homebuilders are benefiting from a shortage of existing

homes on sale, partly due to current homeowners, who secured

properties when interest rates were low, being reluctant to sell

and purchase new homes in today's higher mortgage rate climate.

The limited supply of resale homes, which make up a

significant portion of U.S. housing sales, has pushed up demand

for newly built homes despite the high borrowing costs and

rising prices.

"Despite continued affordability challenges and competitive

market conditions, incentives such as mortgage rate buydowns

have helped to address affordability and spur demand," D.R.

Horton ( DHI ) executive chairman David Auld said, adding that the

company has started to sell more of its homes with smaller floor

plans to meet homebuyer demand.

D.R. Horton ( DHI ), the largest U.S. homebuilder by sales, closed

sales on 19,059 homes in the first quarter ended December 31,

down 1% from 19,340 homes a year earlier.

Pre-tax profit margin in its homebuilding segment came in at

14.1% for the quarter, compared with 15% a year earlier.

The Arlington, Texas-based company posted first-quarter

revenue of $7.61 billion, above analysts' average estimate of

$7.08 billion, according to data compiled by LSEG.

Earnings of $2.61 per share for the quarter also came in

above analysts' estimates of $2.36 per share.