Homebuilders Higher On May's Existing Home Sales Report
Several homebuilders' stocks gained Monday on a report that existing home sales increased in May to their highest level in nearly six years.
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.
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.
M/I Homes Inc (NYSE: MHO) gained nearly 2 percent, trading recently at $24.89.
Hovnanian Enterprises, Inc. (NYSE: HOV), in Red Bank, New Jersey, dipped 0.4 percent to $2.70.
The exchange-traded home building fund SPDR S&P Homebuilders (NYSE: XHB) rose 1 percent and is up about 9 percent year-to-date, versus about 3.4 percent for the S&P 500.
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