Are Home Sales on Rebound?

Home sales seem to be rebounding according to the MBA's Purchase Index
Home sales seem to be rebounding according to the MBA's Purchase Index

Home sales appear to be rebounding, if only slightly, but the overall timeframe of a genuine recovery is in question. The Mortgage Bankers Association Purchase Index inched up 1.1 percent for the week ending November 26 to its highest level since the beginning of May, which is when the second home buyer tax credit ended.

The four week moving average for the Purchase Index is up 3.8 percent, which also seems to indicate more buyers are on the market for a home. Does this homes-sales number mean we can look forward to a recovery in the housing market?