Low mortgage rates a key factor in improved home sales

Data from the National Association of Realtors shows that following a slight hiccup in October, existing-home sales nationwide have resumed their upward trend, and are now pointing toward an improved real estate market next year.

The NAR says that while home sales are still well off of last year's pace, they gained 5.6 percent compared to the previous month, showing an improvement in the market. Prices have also gained, with the national median home price during the month up 0.4 percent over the past 12 months to $170,600.

Helping to buoy those sales are interest rates that remain historically low, which has lowered homeownership barriers to many families across the country.

"The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970," said Lawrence Yun, NAR chief economist. "Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011."

That price gain also carried over to the Houston real estate market. The NAR says that the $152,500 median home price during the month was up 0.3 percent compared to last year, although sales were down 21.5 percent.