The NAR's pending home sales index dropped to a reading of 104.3, down 1.5% from the prior month. Economists polled by Reuters had forecast pending home sales would rise 0.9% last month.

March's index was revised slightly higher to 105.9, the highest reading since July 2018.

Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they become sales one to two months later.Compared to one year ago, pending home sales were down 2.0%, marking the 16th straight month of annual decreases.