WASHINGTON (AP) -- Data coming out Wednesday is expected to reinforce evidence that the real estate market is regaining its footing after a dramatic collapse.

Sales of new homes are expected to post a modest 2 percent increase for October when the Commerce Department makes the announcement Wednesday morning.

Since the report reflects signed contracts to buy homes, rather than completed sales, new home buyers in October were acting before lawmakers this month decided to extend the tax credit for first-time buyers and expand it for existing homeowners.

One analyst says that since the credit will cover contracts signed by April 30, new home sales will likely trend higher during the next few months.

The National Association of Realtors said Monday home resales rose 10 percent from September to October, the biggest monthly increase in a decade.

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