The number of Americans who signed contracts to buy homes jumped in October to the highest level in a year. But the gain follows three months of declines and isn't enough to signal a housing recovery.

The National Association of Realtors says its index of sales agreements rose 10.4 percent last month to a reading of 93.3.

A reading of 100 is considered healthy. The last time it was that high was in April 2010, one month before a federal home-buying tax credit expired.

Contract signings usually indicate where the housing market is headed. There's typically a one- to two-month lag between a signed contract and a completed deal.

But a growing number of buyers have canceled contracts after appraisals showed the homes were worth less than the bid.