Pulte (PHM) (DHI) (TOL) (MDC) (RYL) Pessimistic on Housing Market

According to the National Association of Home Builders, U.S. home builders like D.R. Horton Inc (NYSE:DHI), Toll Brothers Inc (NYSE:TOL), M.D.C. Holdings Inc. (NYSE:MDC), The Ryland Group Inc (NYSE:RYL) and Pulte Group Inc (NYSE:PHM) continue to have a negative outlook on the sector, giving it a 16 grade, with anything below 50 being considered negative.

Added to the usual factors of foreclosed homes, tighter lending standards and higher unemployment, was the return of higher gas prices, which all are weighing on the housing market.

The biggest factor appears to be those who own being concerned over their inability to sell their them at a good price, pressuring them to keep their homes rather than have to possibly pay out to make up the difference in the selling price and what they own on their homes, which in many cases have fallen in price below what they can get for them.

Homes of a strong spring season are fading away, as it hasn't worked out as builders have hoped, and there's little to indicate this will change any time soon.

Builders were trading mixed early in the session, with most of those listed above trading slightly in positive territory.