The number of Americans signing contracts to purchase previously owned homes fell in April to a four-month low, indicating the U.S. housing recovery remains uneven, according to a report released Wednesday.
The decline was the biggest in a year. However, sales are ahead of last year's level for the same month, showing signs there is slight improvement in the housing market this year.
The National Association of Realtors said that its index of sales agreements dropped to 95.5, down from March's reading of 101.1.
Related: Pending home sales post surprise fall in April
Related: U.S. home prices rose in March
Mortgage rates at record lows failed to sustain the pace of demand as some buyers may have waited for home prices to decline further.
Limited access to credit and persistent foreclosures still weigh on housing, adding to concern it will remain a source of weakness for the world's largest economy.
Average home prices rose in March compared with February in most of the 20 cities in a Standard & Poor's/Case Shiller survey out today - the first time in seven months there's been a gain. This report adds to the growing evidence that the worst of the five-year housing slump appears to be over.
But Wednesday's report showed contracts fell 12 percent in the western United States and 6.8 percent in the South. Contracts edged lower in the Midwest and rose slightly in the Northeast.
Pending home sales provide insight into actual contract closings a month or two later. Purchases of existing homes, which made up about 93 percent of the housing market last year, are tabulated when the contract closes.