PulteGroup (PHM) - Get Report  rose 3.15% in trading Tuesday after the home builder reported strong first-quarter results thanks to an increase in the average selling price of its homes. 

The company reported a 1.4% increase in revenue to $2 billion, and earnings of 59 cents per share. Wall Street was expecting the company to report revenue of $1.93 billion and earnings of 47 cents per share. 

PulteGroup reported a 2% increase in home sale revenue driven by a 2% increase in the average selling price of its homes to $421,000. The company said new home orders fell to 6,463 in the quarter, totaling $2.7 billion, from 6,875, valued at $2.9 billion, a year ago. 

"Helped by the recent decline in mortgage rates, homebuyers have been steadily returning to the market after a period of slowing demand that began in the second half of 2018," said Ryan Marshall, president and CEO of PulteGroup. "In addition to the strong financial results PulteGroup delivered in the quarter, we view the significant increase in consumer traffic into our communities as an important indicator of the overall health of the housing industry."