FORT WORTH, Texas ( TheStreet) -- Homebuilder D.R. Horton ( DHI) 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. Centex ( CTX) also reported that it swung to a first-quarter profit, even as revenue was nearly halved, although Pulte Homes ( PHM) widened its loss in the second quarter, to $189.5 million, or 74 cents a share. -- Reported by Jeanine Poggi in New York.