Market Shrugs Off Lower April Pending Home Sales

Homebuilders' shares shrugged off slower-than-expected April demand for previously-owned homes.

Contracts to buy previously owned homes grew 0.4 percent in April, down from a gain the previous month of 3.4 percent.

Wall Street expected a gain of one percent in the so-called pending home sales index, compiled monthly by the National Association of Realtors.

Despite the disappointment, "an upturn in closed sales is expected," said NAR economist Lawrence Yun. "Some months will encounter a modest setback."

Pulte Group PHM was up 0.7 percent to $19.87 in mid-morning session.

D.R. Horton DHI gained nearly two percent to $23.79, while Lennar LEN rose 1.24 percent to $40.87 and KB Home KBH was up 0.24 percent to $16.66.