With Tax Credit Over, Home Sales Dropping

While most economists had predicted a drop in pending home sales, the actual index fell much further than expected, according to a report. Pending home sales fell 30% in May, according to the National Association of Realtors (NAR). In April, the index – which measures signed sales contracts, not closed sales – fell to 77.6 from 110.9 in April. NAR’s Chief Economist Lawrence Yun suggests that some consumers rushed into deals to take advantage of the Obama tax credit, and that as the economy improves, the housing market should heat up. To read this CNNMoney article, click here.