Pending home sales fall 30% in May

New sales contracts on existing homes fell sharply in May after a federal subsidy for buyers expired at the end of April, a trade group reported Thursday.

The pending home sales index fell 30% in May after rising 23% between January and April, the National Association of Realtors reported. The index, which measures signed sales contracts on previously owned homes, was down 15.9% compared with the same month a year ago.