http://finance.yahoo.com/news/pending-home-sales-hit-three-140510455.html
Contracts to buy previously owned U.S. homes rose to their highest level in three years in April, but a shortage of properties for sale could slow down the momentum.
The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed last month, rose 0.3% to 106.0, the highest reading since April 2010.
Contracts, which become sales after a month or two, had increased 1.5% in March.
Although mortgage rates spiked last week to their highest level in a year amid heightened speculation the Fed will soon start to scale back monetary stimulus, economists do not believe higher borrowing costs would derail the housing recovery.
About a third of home resales are cash transactions.
Contracts were up 10.3% compared to April last year.
Last month, home resale contracts rose in the Northeast and Midwest. Contracts fell in the South and West.
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