(Reuters) - U.S. homebuilder PulteGroup ( PHM ) beat Wall Street estimates for its fourth-quarter results on Thursday, as strategic promotions helped boost home sales despite high mortgage rates, sending its shares up more than 3% in premarket.

The Atlanta, Georgia-based company said it used targeted sales incentives to spur consumers who have been reluctant to buy new homes, as the U.S. 30-year mortgage rates crossed 7% earlier this month, the highest since May 2024.

"Despite Federal Reserve actions to lower short-term interest rates, mortgage interest rates remained elevated in the fourth quarter, which impacted buyer demand as homebuyers continue to face affordability challenges," said PulteGroup ( PHM ) CEO, Ryan Marshall.

The homebuilder also announced a $1.5 billion increase to the company's share repurchase authorization.

The company reported a 6% increase in closings to 8,103 homes, compared with the prior year.

PulteGroup's ( PHM ) total revenue for the quarter ended Dec. 31 of $4.92 billion came above analysts' average estimate of $4.64 billion, according to data compiled by LSEG.

Earnings came in at $4.43 per share, beating analysts' estimates of $3.27 per share.