Such behavior was the only thing that kept me away from using screen. It uses "screen" terminal and changing it to "xterm" didn't help.

Adding altscreen on option in ~/.screenrc solved it. From screen's manual:

altscreen on|off   If set to on, "alternate screen" support is enabled in virtual terminals, just like in xterm. Initial setting is `off'. 

Such behavior was the only thing that kept me away from using screen. It uses "screen" terminal and changing it to "xterm" didn't help.

Adding altscreen on option in ~/.screenrc solved it. From screen's manual:

altscreen on|off 

If set to on, "alternate screen" support is enabled in virtual terminals, just like in xterm. Initial setting is `off'.