Contracts to Buy Homes Fall to a 7-Month Low

WASHINGTON (AP) — The number of people who signed contracts to buy homes fell sharply in April, hitting its lowest point since fall and renewing fears that a recovery in the housing market is far off. The National Association of Realtors says its index of sales agreements for previously occupied homes sank 11.6 percent last month to a reading of 81.9. A reading of 100 would be considered healthy. The last time the index reached at least 100 was in April 2010. That was the final month when people could qualify for a home-buying tax credit of up to $8,000. Contract signings are considered a reliable indicator of the housing market's direction. There's usually a one- to two-month lag between a sales contract and a completed deal.