Pending home sales at highest level since 2010

• Index of pending home sales shows 10.3%25 gain in 12 months
• Index is highest since April 2010 when a homebuying tax credit was in effect

WASHINGTON (AP) — The number of Americans who signed contracts to buy homes ticked up in April to the highest level in three years. The increase points to further strength in home sales in the coming months.

The National Association of Realtors says its seasonally adjusted index for pending home sales rose 0.3% to 106. That's the highest since April 2010, when a homebuyer tax credit inflated sales.

Signed contracts have jumped 10.3% in the past 12 months. There is generally a one- to two-month lag between a signed contract and a completed sale.

Meanwhile,mortgage rates have continued to tick up this month, though they remain near record lows. Freddie Mac said Thursday the average fixed-rate 30-year loan was 3.59%, up from 3.51% last week.

Sales of previously occupied homes rose in April to a seasonally adjusted annual rate of 4.97 million, a 3 ½-year high. More buyers are bidding on a limited supply of homes for sale. That's pushing up prices.