The NAR pending home sales index for April is unchanged at an unrevised 78.9 in April from March. The index is down 20.3 percent from a year ago. The index is below the consensus of up 1.1 percent in the Econoday survey. Contracts on homes remain constrained by home affordability due to prices and interest rates and a lack of units on the market. NAR Chief Economist Lawrence Yun said,"Not all buying interests are being completed due to limited inventory." He continued,"Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving."

While all four regions of the US housing market were sharply below year-ago levels of contract signings, the unchanged month-over-month reading in the overall index was due to a decline of 11.0 percent in the Northeast and 9.2 percent in the South. Contracts are 5.5 percent higher in April from March in the Midwest, and up 3.4 percent in the West.

Pending home sales in April are expected to rise 1.1 percent.

The National Association of Realtors developed the pending home sales index as a leading indicator of housing activity. Specifically, it is a leading indicator of existing home sales, not new home sales. A pending sale is one in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as the pending home sales index which measures home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month.

Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.

The National Association of Realtors moved up its publication schedule in 2011. Prior to 2011, the reference month was two months trailing the release date. In 2011, the reference month trails only by one month to the release month.