I noticed that the version of vim on my CentOS 6.5 installation was outdated. Here are the steps I followed to install the latest version from source.
First, switch to root user
Make sure that mercurial is installed
yum install mercurial
I also needed to install the ncurses library
yum install ncurses-devel
Fetch the latest source from googlecode and change to the created directory
cd /usr/local/src/ hg clone https://vim.googlecode.com/hg/ vim cd vim
./configure --prefix=/usr --with-compiledby="Cody" --with-features=huge --enable-rubyinterp --enable-pythoninterp
make && make install
You should now be able to use the latest version of vim.
ls -la /usr/bin | grep vim which vim