Homebuilding Stocks Fall Amid Housing Market Index Report

Shares of homebuilder stocks fell Tuesday amid the release of the National Association of Home Builders/Wells Fargo Housing Market Index which declined one point to 57.

The latest reading marks the third straight month that the index has hovered in the upper 50s range.

“After seven months above the key 50 benchmark, builder sentiment is reflecting the gradual improvement that is occurring in many markets throughout the nation,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.

Toll Brothers Inc TOL, Lennar Corporation LEN, PulteGroup, Inc. PHM, William Lyon Homes WLH, KB Home KBH and Ryland Group Inc RYL were among the stocks declining Tuesday.

Hovnanian Enterprises, Inc. HOV was hit the hardest and recently traded at $3.34, down 7.22 percent.

SPDR S&P Homebuilders (ETF) XHB recently traded at $32.93, down 2.14 percent.