Pending Home Sales Index Signaling Stability?

A leading indicator of existing-home sales fell 3.2% in April, but may suggest stability ahead for the housing market, according to the National Association of Realtors.The Realtors' Pending Home Sales Index, which is based on sales contracts signed in April, fell to 101.4 in April from an upwardly revised 104.8 in March. On a year-over-year basis, the index is down 10.2% since April 2006. "It looks like we may be leaving a period of market disruptions, and for the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead," NAR senior economist Lawrence Yun said. "In April, existing-home sales declined in part because some subprime lenders went out of business and disrupted the market, but the impact appears to be diminishing, and mortgage applications have risen in the last month." The NAR can be found online at http://www.realtor.org.