Contracts to buy homes fall to a 7-month low

Contracts to buy homes fell to a 7-month low in April, suggesting a housing rebound is far off

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.

An index of sales agreements for previously occupied homes sank 11.6 percent last month to a reading of 81.9, the National Association of Realtors said Friday. 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.

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