The National Association of Realtors (NAR) released its pending home sales figures for the U.S. on Thursday. Pending home sales in the U.S. rose 0.5% in July, after a 1.7% drop in June. June's figure was revised down up a 1.8% decline.

The increase was partly lead by gains gain in the Northeast.

"Homeowners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale. As a result, home prices are up and accelerating in many markets," the NAR's chief economist Lawrence Yun said.

He pointed out that the U.S. housing market can handle interest rates well above 4%.

"The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers - especially first-time buyers - are able to obtain a mortgage," Yun noted.