AP News

Homebuilder's fall on drop in pending home sales

Shares of homebuilders fell Monday after a housing index found that the number of Americans who signed contracts to buy existing homes fell in September to the lowest level in nine months.

The National Association of Realtors said that its seasonally adjusted pending home sales index dropped 5.6 percent last month from August to a reading of 101.6.

Demand for homes has weakened as mortgage rates rose over the summer.

The data comes a week after homebuilder PulteGroup Inc. said that completed home sales rose 9 percent in its third quarter from a year earlier, but orders for new homes fell 17 percent.

Shares of Beazer Homes USA Inc. fell 52 cents, 2.7 percent, to $19.02 in afternoon trading Monday. Standard Pacific Corp. fell 11 cents, or 1.3 percent, to $8.18. Hovnanian Enterprises Inc. fell 8 cents, or 1.40 percent, to $5.30.

Here's how other homebuilder stocks fared in afternoon trading:

—KB Home shares fell 25 cents, or 1.4 percent, to $17.65

—Lennar Corp. shares fell 27 cents to $36.72.

—MDC Holdings Inc. shares fell 1 cent to $30.74.

—PulteGroup shares fell 10 cents to $17.94.

—Toll Brothers Inc. shares fell 24 cents to $33.57.

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