In July, the third time this year, the Pending Home Sales Index crossed its benchmark value of 100, moving to 101.7.
According to the Federal Home Finance Agency's Home Price Index, home prices rose by a seasonally-adjusted 0.7 percent between May and June 2012. The index is now up 3.0% over the past 12 months, and made its biggest quarterly gain since 2005 last quarter.
Conforming mortgage rates fell last week for the first time this month, breaking a 4-week losing streak.
Eariler this week, the Federal Reserve released the minutes from its 2-day meeting which ended August 1, 2012. Since the release, mortgage rates have dropped.
Mortgage rates are lower this year, and closing costs are, too.