Pending Home Sales Fell in May

Washington, DC, July 1, 2010--New contracts for home resales fell substantially in May after a federal subsidy for buyers expired at the end of April, according to the National Association of Realtors.

The pending home sales index fell 30% in May after rising 23% between January and April, NAR said.

The index, which measures signed sales contracts on previously owned homes, was down 15.9% compared with the same month a year ago. The pending home sales index is a leading indicator for sales of existing homes, which are recorded at the time of the closing.