Homebuilder stocks mostly edged higher Monday even after dismal quarterly reports suggested the housing downturn and credit fallout aren't over.
Homebuilder Standard Pacific Inc. reported a wider first-quarter loss due to $201.6 million in impairment charges related to tax asset valuation and write-downs of unsold inventory and undeveloped land. Its stock dropped 51 cents, or 13.53 percent, to $3.26 and traded as low as $2.72.
Also on Monday, Mortgage lender IndyMac Bancorp Inc. said it swung to a loss in the first quarter as it lowered the value of mortgage-backed securities. The lender also warned it would not post a profitable quarter this year.
Meanwhile, PMI Group Inc. also posted a quarterly loss due to large payouts on mortgage default claims and charges to write off its investment in bond insurer FGIC.
Rising defaults and foreclosures have added a glut of homes to the market and forced banks to tighten mortgage lending standards. As a result, fewer buyers qualify for home loans, while declining housing prices have sent others to the sidelines.
Shares of Centex Corp. gained 60 cents, or 2.8 percent, to $21.96 in midday trading. DR Horton Inc.'s stock added 32 cents to $15.15, while Pulte Homes Inc. gained 19 cents to $13.21. Lennar Corp., however, slipped 4 cents to $18.37.
Luxury homebuilder Toll Brothers Inc. rose 39 cents to $23.27.
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