The silhouette of a contractor is seen hammering wood framing for a house under construction in the Norton Commons subdivision of Louisville, Kentucky. /Luke Sharrett | Bloomberg | Getty Images
By Cara Caruso | CNBC
Homebuilder stocks tumbled Tuesday as disappointing monthly housing data and slowing orders at builder Lennar weighed on the sector.
Housing starts in the U.S. came in at an annualized rate of 1.14 million in August, well below the expected 1.19 million. Construction permits fell 0.4 percent to a 1.14 million-unit rate last month.
The SPDR S&P Homebuilders ETF (XHB) fell about 0.91 percent on the day. Lennar and Pulte shares dropped about 3.5 and 2.9 percent respectively, erasing the prior day’s gains.
Homebuilders had surged on Monday after a monthly survey of builder confidence jumped a striking six points in September to the highest level in nearly a year.
