By The Associated Press

WASHINGTON – Fewer Americans signed contracts to buy homes in January, the latest evidence that the housing market is struggling.

The National Association of Realtors says its index of sales agreements for previously occupied homes fell 2.8 percent last month to a reading of 88.9, the second straight monthly decline.

The reading was higher than the 75.9 reading from June, the low point since the housing bust. But it’s below 100, which is considered a healthy level. The last time it reached that point was in April, the final month people could qualify for a home-buying tax credit.

Sales of previously owned homes fell last year to the lowest level in 13 years. Economists say it will be years before the housing market fully recovers. High unemployment and a record number of foreclosures are deterring potential buyers, who fear home prices haven’t reached the bottom.

Source: Associated Press