WASHINGTON, March 17 (Reuters) – Contracts to purchase previously owned U.S. homes unexpectedly increased in February amid a decline in mortgage ?rates, but further gains are likely to be limited by the war in the Middle East that is raising oil prices ?and fanning inflation fears.

The pending home sales index rebounded 1.8% last month to 72.1, the National Association of Realtors said on Tuesday. Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling 0.5%.