5 Homebuilder Stocks Not Helped Much by Solid Housing Data

NEW YORK (TheStreet) -- The cross-currents of data in the housing market established trading ranges for these five homebuilders: D.R. Horton (DHI), KB Home (KBH), Lennar (LEN), PulteGroup,  (PHM) and Toll Brothers (TOL).

On Monday, the National Association of Home Builders released its Housing Market Index for June which showed a rise of five points to 59, the highest level since September 2014. Unfortunately, the data for single family housing starts for May released on Tuesday showed a slump to an annual rate of 680,000 down 5.4% from the pace set in April.

The graph below shows the NAHB Housing Market Index versus single-family starts. The HMI (in blue with its scale on the left of the graph) shows the rise of five points to 59 in June. This index has been above the neutral reading of 50 for 12 consecutive months.

Single-family starts (in red with its scale at the right of the graph) shows the revised April rate of production not the May rate, which will be shown in July. At 680,000, single-family starts remain well below the normal annual rate of 1.1 million to 1.2 million units.

The NAHB touted the positive trend in building permits, which rose 11.8% to an annual rate of 1.275 million, the highest level since August 2007.

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