Housing stocks mostly edged higher Monday even as a new report showed that persistent high inventory levels have not abated.
The stocks rose ahead of an expected cut in the U.S. central bank's benchmark interest rate on Wednesday. The hope is that the move will help keep the economy from contracting _ which would delay a recovery in the beleaguered housing market.
Hovnanian Enterprises Inc. led the gainers, adding 30 cents, or 2.5 percent to $12.16. Beazer Homes Inc. also rose more than 2 percent, adding 25 cents to $10.75.
The few decliners included D.R. Horton Inc., which shed 33 cents to $16.70. KB Home also dropped, trading down 51 cents to $23.46.
Earlier Monday, the Census Bureau reported the percentage of vacant homes for sale in the U.S. set a record high in the first quarter, as an increasing number of buyers of investment properties are selling them.
Global Insight economist Patrick Newport called the report "worrisome."
"The inventory problem has not gotten any better," Newport said. Although glut-fighting home builders have reined in construction, "they still will have to cut back more."
The inventory overhang has been the biggest drag on the sector, since prices are falling sharply as supply outstrips demand.
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