NEW YORK - May 27, 2011 - Pending sales of existing U.S. homes dropped far more than expected in April to touch a seven-month low, a trade group said on Friday, dealing a blow to hopes of a recovery in the housing market.

The National Association of Realtors Pending Home Sales Index dropped 11.6% to 81.9 in April, the lowest since September. Pending home sales lead existing home sales by a month or two.

Economists, who had expected pending home sales to fall 1.0% last month, said bad weather in some parts of the country might have affected home shopping.

"There may some temporary factors like bad weather in the South," said Gus Faucher, director of macroeconomics at Moody's Analytics in West Chester, Pennsylvania.

"Higher gasoline may be making potential home buyers a bit cautious. It is signaling further weakness in housing, but we do expect housing to turn around later this year. It just hasn't happened yet."

Pending home sales in the South, which was ravaged by tornadoes, dropped 17.2%. Sales were also down in the Midwest and West.