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Cheap Prices Help Spike Home Sales; Mortgage Rates to Rise

Comstock/Thinkstock(NEW YORK) -- After taking a beating, the housing market got a boost Wednesday when the latest report on existing home sales found that purchases for six out of the past eight months went up.

Relatively cheap prices are partially behind the upswing.

"Prices are at the highest affordability level that we've seen in the past decade," says Ken Shuman with, a homes sales wesbite.

Mortgage rates are also still very low but that soon may change, according to Shuman.

"As inflation begins to rise we'll see mortgage rates rise with that," he says.

"I think we'll see interest rates not only rise in the next two to three months but we'll see interest rates rise throughout the entire year actually," Shuman adds.

Despite the positive trend, home sales are still at depressed levels compared to a few years ago.

Copyright 2011 ABC News Radio

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