Housing stocks were mostly lower Friday as the federal government sent mixed signals on a plan that would provide cheaper mortgages to many borrowers.
The Democratic-controlled House of Representatives on Thursday passed a homeowner rescue plan that would provide cheaper, government-backed mortgages to half a million debt-ridden borrowers and bolster an economy crippled by the housing crisis.
President Bush has threatened to veto the House bill, which also faces opposition from congressional Republicans.
The House voted to let the Federal Housing Administration take on up to $300 billion in new mortgages so that financially strapped borrowers facing foreclosure could refinance.
Centex Corp., which recently reported a massive quarterly loss, issued a statement Thursday applauding the bill, saying it would have a "positive impact, especially for first-time home buyers."
The company's shares edged up by 7 cents in afternoon trading.
Pulte Homes Inc. fell 1 percent after it said in a regulatory filing that one of its joint ventures was in default on some of its debt. Lehman analyst Megan Talbott McGrath said Pulte could be on the hook for $53 million if the venture cannot renegotiate with lenders.
D.R. Horton Inc. shares fell 1.3 percent in midday trading. It posted a hefty loss Tuesday after taking big charges to write down the value of unsold homes on its books.
Hovnanian Enterprises Inc. shares fell 32 cents, or 3 percent, to $9.28.
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