Here Comes Pending Home Sales...

Economists polled by Bloomberg are looking for a 1% month-over-month rise in pending home sales, and an 8.7% year-over-year fall.

This compares to a 3.4% MoM rise and a 7.4% YoY fall in March.

"We won't be extrapolating an April increase into a forecast of further sustained gains in sales," Ian Shepherdson at Pantheon Macroeconomics wrote in a note ahead of the data release.

"Housing market activity will not return anytime soon to its autumn level, still less its spring 2013 peaks, because the main driver of the drop in sales has been the plunge in affordability, not the weather."

If pending home sales do rise as expected, this will be the second consecutive monthly rise after eight straight months of declines. Pending home sales are considered a leading indicator for existing home sales.