WASHINGTON — More Americans signed contracts to purchase homes in April than the prior month. But the pace of buying is still weaker than last year, as higher prices and relatively tight supplies have limited sales.
The National Association of Realtors said Thursday that its seasonally adjusted pending home sales index rose 0.4 percent to 97.8 last month.
Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a signed contract and a completed sale.
The gain in signed contracts partly reflects the slight decline in mortgage rates and the economic rebound from the brutal winter. But prices have risen by 12.4 percent year-over-year, according to Standard & Poor’s/Case-Shiller 20-city home price index. That has put home ownership out of reach for a growing share of Americans hurt by the recession. Would-be buyers have gotten some help in recent weeks from falling mortgage rates. Average rates for 30-year, fixed mortgages declined to 4.12 percent, according to Freddie Mac.