Pending home sales rose in April

WASHINGTON, June 2 (UPI) -- Pending U.S. home sales rose for the third consecutive month in April, the National Association of Realtors in Washington said Tuesday.

The Pending Home Sales Index, based on contracts signed in the month, rose 6.7 percent, from 84.6 to 90.3, NAR said.

"Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," NAR chief economist Lawrence Yun said in a statement.

"Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers," he said.

The NAR's Housing affordability index is already "in record territory," the report said.

The affordability index, which accounts for income, interest rates and home prices, rose to 174.8 in April, the second highest level on record.

It peaked in January at 176.9, NAR said.