The number of contracts to buy previously owned houses unexpectedly fell in June, indicating demand kept unraveling after a homebuyer tax credit expired.

The index of pending home resales dropped 2.6% from the previous month, according to data from the National Association of Realtors released Tuesday.

Economists had forecast a 4% gain.

The expiration of the government tax credit on April 30 caused the gauge to slump 30% in May.

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