Sector Snap: Housing stocks mostly rise

NEW YORK - Housing stocks mostly rose Tuesday despite a report that showed pending home sales fell to their third-lowest level in May, as investors found some relief in remarks from the Federal Reserve chief.

The National Association of Realtors' seasonally adjusted index of pending sales for existing homes fell 4.7 percent in May. The index was 14 percent below year-ago levels.

Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.

Sales of existing homes, however, edged up in May, indicating that buyers were taking advantage of deeply discounted prices.

Investors may have also found some solace in remarks from Federal Reserve Chairman Ben Bernanke, who said the central bank will issue new rules next week to help protect future homebuyers from the shady lending practices that sparked the current mortgage debacle.

Shares of Lennar Corp. jumped 55 cents, or 5.1 percent, to $11.40 in midday trading. Shares have traded between $10.35 and $37.44 in the last 12 months. Pulte Homes Inc. added 25 cents, or 2.7 percent, to $9.39. Shares are down 62 percent from a high of $24.25 last August. KB Home gained 59 cents to $16.03.

Bucking the trend, DR Horton Inc. lost 4 cents to $10.05 and Toll Brothers Inc. fell 4 cents to $18.41.

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