Pending Homes Sales showed a slight increase according to the National Association of Realtors (NAR) last month. Rising 4.3% on a monthly comparison, the pending home sales indicates that closings will continue to rise in the next couple of months.

According to Lawrence Yun, Chief Economist of NAR, Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market. He expects the rise to continue on in 2011; however recovery depends on the unemployment rate as well as consumer confidence.

Yun went on to say, Current low consumer price inflation has helped keep mortgage interest rates very attractive this year. However, recent rising trends in producer prices at the intermediate and early stages of production, along with very high commodity prices, are raising concerns about future inflation and future mortgage interest rates.