WASHINGTON, July 31 (Reuters) - Contracts to buy U.S.

previously owned homes rebounded sharply in June as an

improvement in supply and some moderation in mortgage rates

pulled buyers in from the sidelines.

The National Association of Realtors (NAR) said on Wednesday

its Pending Home Sales Index, based on signed contracts, surged

4.8% last month to 74.3. Pending home sales rose in all four

regions last month.

Economists polled by Reuters had forecast contracts, which

become sales after a month or two, rebounding 1.5%. Pending home

sales dropped 2.6% in June on a year-on-year basis.

"The rise in housing inventory is beginning to lead to more

contract signings," said NAR Chief Economist Lawrence Yun.

Mortgage rates have pulled back after surging in the spring

and house price increases are slowing. But a sharp rebound in

home sales in unlikely.

A Conference Board survey on Tuesday showed the share of

consumers planning to buy a house over the next six months

slumped in July to the lowest level since February 2013.

The Federal Housing Finance Agency reported on Tuesday that

houses prices increased 5.7% year-on-year in May, the smallest

gain in 10 months after rising 6.5% in April.