Sales Contracts For Homes Dropped In April

WASHINGTON (AP) — A gauge of Americans who signed contracts to buy homes fell in April from nearly a two-year high in the previous month. Still, sales are well ahead of last year's level for the same month, a sign that a slow recovery in the housing market continues.

The National Association of Realtors says that its index of sales agreements dropped to 95.5, down from 101.1 in March — the highest level since April 2010.

A reading of 100 is considered healthy. Even with the drop in April, the index is still above the 83.5 level of a year ago.

Contract signings typically indicate where the housing market is headed. There's a one- to two-month lag between a signed contract and a completed deal.