Shares of homebuilders reversed course Thursday, paring early losses and mostly turning positive at midday, even as housing foreclosure data indicated the market is continuing to weaken.
Home foreclosures increased 60 percent in February, compared with the same period the previous year, according to research firm RealtyTrac Inc. A total of 223,651 homes across the country received at least one notice in February of an overdue payment. Nearly half of that increase slipped into default during the month.
Countrywide Financial Corp., the nation's largest mortgage servicer, also said February brought increased foreclosures. Countrywide's foreclosure rate rose to 1.64 percent in February, compared with 1.48 percent in January and 0.80 percent in February 2007.
A rising foreclosures rate indicates the housing market is unlikely to rebound soon, as it results in an increase in the number of unsold homes, which is likely to continue to pressure housing sales.
Homebuilders rebounded from early lows as broader markets also pared losses. The Dow Jones industrials average fell 73.10 points to 12,037.14 in midday trading. The average was down more than 200 points earlier in the session.
Shares of Hovnanian Enterprises Inc. rose 78 cents, or 8.6 percent, to $9.82, after trading as low as $8.50 during the morning session.
Beazer Homes USA Inc. rose 54 cents, or 7.5 percent, to $7.73.
Shares of Toll Brothers Inc. rose 36 cents to $19.81. Shares had been down 76 cents earlier in the day.
D.R. Horton Inc. shares rose 28 cents, or 2.1 percent, to $13.92.
Pulte Homes Inc. added 54 cents, or 4.6 percent, to $12.33, while KB Home gained 76 cents, or 3.3 percent, to $23.83.
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