This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

New-Home Sales: Winners & Losers

Stocks in this article: BHS TOL BZH MTH DHI KBH SPF

(New-Home Sales Winners & Losers article updated with stock price movements.)

WASHINGTON ( TheStreet) -- Homebuilder stocks pushed higher Wednesday afternoon despite the latest round of far-from-stellar data on the housing market.

Sales of newly-built homes fell 12.4% in July to a seasonally adjusted record-low annual sales pace of 276,000, the Commerce Department said Wednesday. The figure came in well below expectations for a rate of 334,000 after a downwardly revised rate of 315,000 units sold in June.

The report came a day after the National Association of Realtors said existing-home sales plummeted 27.2% in July to a seasonally adjusted annual rate of 3.83 million units. The figure was far worse than the expected rate of 4.72 million units after a downwardly revised rate of 5.26 million in June.

"The data from the housing sector is pretty awful," ConvergEx Group chief market strategist Nicholas Colas told TheStreet. "I guess the best thing you can say is that the market figured that out yesterday so it was braced for today's number."

The SPDR S&P Homebuilders (XHB), an exchange-traded fund that tracks the homebuilder sector, closed up by 3.2% while the iShares Dow Jones US Home Construction (ITB) gained 3.1%.

Leading the sector higher were shares of Brookfield Homes (BHS) and Toll Brothers (TOL), which jumped 7.8% and 5.8%, respectively. Toll Brothers said early Wednesday it returned to profitability for the first time since 2007.

Shares of Beazer Homes (BZH) closed up 4.9%, Meritage Homes (MTH) 4.7%, D.R. Horton (DHI) and KB Home (KBH) 4.6%, and Standard Pacific (SPF) 4.4%.

Record-low and near-record-low mortgage rates have failed to spark demand for housing in recent months, but clearly had an effect on homeowners looking to lower their monthly payments through refinancing.

Mortgage applications rose 4.9% in the week ended Aug 20, the Mortgage Bankers Association said early Wednesday. It was the fourth straight week-over-week increase, led by a 5.7% jump in refinance applications, while loan applications for home purchases edged up by 0.6%.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,891.60 +86.80 0.49%
S&P 500 2,071.43 +0.78 0.04%
NASDAQ 4,769.5460 +4.1660 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs