Pending sales of existing homes up

The number of contracts to buy previously owned homes climbed in April as Americans took advantage of the last month of a tax credit. The index of pending home re-sales rose 6 percent, exceeding the median forecast of economists surveyed by Bloomberg News, following a revised 7.1 percent gain in March, the National Association of Realtors said today in Washington. The gauge reached the highest level since October. A plunge in mortgage applications signals sales will soften in subsequent months following the April 30 deadline to sign contracts and obtain as much as $8,000 in government assistance. Any sustained recovery in housing hinges on maintaining stability in financial markets and gains in employment in the wake of the European debt crisis.

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