Pending home sales plummet absent homebuyer credit

Following a surge driven by the homebuyer tax credit, the Pending Home Sales Index dropped 30 percent in May as qualifed buyers could no longer take advantage of the tax break, according to the National Association of Realtors.

Congress has approved a three-month extension to close on the purchase of a home and still qualify for a credit of up to $8,000.

The extension will help some 180,000 homebuyers who signed a contract by April 30 but could not close on the purchase by the June 30 deadline to take advantage of the tax credit.