Pending Home Sales Fall - Lowest Level Since '03

Pending Home Sales Fall - Lowest Level Since '03

The National Association of Realtors (NAR) said its Pending Home Sales Index, based on contracts signed in April, fell 3.2 percent to 101.4 from an upwardly revised level of 104.8 in March. The index registered 99.3 in February 2003. 

Wall Street analysts polled ahead of the report were expecting the April index to be 105.

According to The NAR, failures among subprime mortgages offered to borrowers with damaged credit is continuing to dampen the home sales market.

"In April, existing-home sales declined in part because some subprime lenders went out of business and disrupted the market," said Lawrence Yun, the NAR senior economist.

Yun also said that potential borrowers are looking "for clear signs that the market has bottomed" before they buy.

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