Home Builders Higher On May's Existing Home Sales Report

Several home builders' stocks gained Monday on a report that existing-home sales increased in May to their highest level in nearly six years. http://www.realtor.org/news-releases/2015/06/existing-home-sales-bounce-back-strongly-in-may-as-first-time-buyers-return Led by the Northeast, all major regions experienced sales increases in May, according to the National Association of Realtors. Sales rose 5.1 percent to a seasonally adjusted annual rate of 5.35 million last month, above the 5.25 million economists expected according to a poll by MarketWatch. http://www.marketwatch.com/economy-politics/calendars/economic Lawrence Yun, NAR chief economist, said solid sales gains were seen throughout the country. Yuan said supply remains tight and without solid gains in new home construction, "prices will likely stay elevated — even with higher mortgage rates above 4 percent." The median existing-home price rose 7.9 percent from a year earlier, to $228,700 last month. Columbus, Ohio-based M/I Homes Inc

gained nearly 2 percent, trading recently at $24.89. Lennar Corporation

, based in Miami, gained about 1.6 percent to $49.42 and Los Angeles-based KB Home

picked up 1.5 percent to $16.63. Hovnanian Enterprises, Inc.

, in Red Bank, New Jersey, dipped 0.4 percent to $2.70. The exchange-traded home building fund SPDR S&P Homebuilders

rose about 1 percent and is up about 9 percent in the year to date, versus about 3.4 percent for the S&P 500.