Sector snap: Homebuilders mostly lower poor industry data

Housing stocks were mixed Tuesday even as new data showed the battered housing market continued its decline unabated.

The stocks have been searching for direction in recent weeks after a sharp run up that had left industry indices about 20 percent higher since the start of the year.

Investors were betting that the housing sector was nearing the end of its decline, but a bevy of recent corporate and industry data is starting to sour that sentiment.

The latest blow came from the Standard & Poor's/Case-Shiller home price index of 20 cities, which showed a 12.7 percent year-over-year decline for February _ the largest decline since the index's inception in 2001.

Falling prices have made potential buyers reticent to invest in a property that may continue to lose value. Meanwhile, demand has been weakened further by tighter lending standards that have made getting a loan either too expensive or impossible for many would-be buyers.

The lack of demand exacerbates an excess inventory of homes on the market that was caused by excessive building during the five-year boom that ended in 2006. Builders have curbed construction in the past year, but rising rates of foreclosures and vacant homes for sale have kept the supply near record levels.

On Tuesday, industry group RealtyTrac Inc. reported that the number of U.S. homes heading toward foreclosure more than doubled in the first quarter, from a year earlier.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average.

The news did not stop shares of Lennar Corp. from jumping nearly 3 percent, or 57 cents per share, to $20.11 in afternoon trading Tuesday. Other gainers included Centex Corp., which reports quarterly results after the markets close., Hovnanian Enterprises Inc. and Beazer Homes USA Inc.

D.R. Horton Inc. paced the decliners, shedding 32 cents, or 2 percent to $16.83. Pulte Homes Inc. and Toll Brothers Inc. also slipped.