Index of pending home sales hits new low

As the housing slump drags on, an industry group says pending U.S. home sales fell to a new low in March.

Spring is traditionally a popular time to buy a home, but even that general tendency is not helping the housing market to rebound.

The National Association of Realtors says the index of pending sales for existing homes fell to 83.0 in March, compared with a downwardly revised February reading of 83.8, the index's previous low. The index was 103.9 in March 2007.

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A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

The trade group predicts existing home sales activity and the economy will pick up in the second half of the year, as larger home loans backed by the Federal Housing Administration become more widely available. The FHA recently raised the mortgage limits for loans it guarantees.