) -- Homebuilder

D.R. Horton

(DHI) - Get Report

gave another sign that the housing market might be creeping out of its downturn, narrowing its loss in the third quarter.

During the quarter, the company recorded a loss of $142.3 million, or 45 cents a share, compared with a loss of $399.3 million, or $1.26, in the year prior. Analysts expected a loss of 23 cents.

Revenue tumbled 36% to $914.1 million from $1.43 billion last year.

The company sold 4,240 homes during the quarter despite 26% of buyers canceling orders.

The smaller loss follows some positive data in the housing industry. The Commerce Department reported on Monday that

construction spending increased 0.3%

in June, surpassing analysts' forecast.



also reported that it

swung to a first-quarter profit

, even as revenue was nearly halved, although

Pulte Homes

(PHM) - Get Report

widened its loss

in the second quarter, to $189.5 million, or 74 cents a share.

-- Reported by Jeanine Poggi in New York.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.