A modest gain in the level of home sales is possible over the next couple of months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast.The Pending Home Sales Index rose 6.3 percent to 88.2 from a reading of 83.0 in March. It's the highest index figure since last October. Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," he said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts."

To read the complete forcast and pending home sales index at NAR "click here"