WASHINGTON, May 19 (Reuters) – Contracts to purchase previously owned U.S. homes increased for a third straight month in April, likely as ?a temporary retreat in mortgage rates pulled buyers back into the market.

Economists, however, shrugged off the larger-than-expected rise in pending home sales, reported by the National Association of Realtors on Tuesday. Most expected demand for houses to remain subdued this year, noting that mortgage rates remained very high ?relative to the start of the year.