Contract signings to purchase previously owned homes unexpectedly fell in April, adding to signs the housing market is struggling to regain momentum.
The index of pending home sales declined 1.5% from the prior month, missing all economist estimates,
The monthly decline adds to signs of a soft housing market amid an economy that may be losing some steam. Previous data showed sales of both new and existing homes fell in April while single-family housing permits dropped to the lowest level in almost two years.
At the same time,
Pending home sales are often looked to as a leading indicator of existing home purchases and a measure of the health of the housing market in the coming months.
"Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising," NAR Chief Economist Lawrence Yun said in a statement. "It's inevitable for sales to turn higher in a few months."
Contracts decreased from the prior month in three of four regions, led by a 2.5% drop in the South. The Midwest was the only area to record a gain, at 1.3%.
Forecasts for monthly pending home sales in a Bloomberg survey of economists ranged from a 1% drop to a 1.6% gain.