Sector Snap: Homebuilders down

Red Bank, N.J.-based Hovnanian Enterprises Inc. led the sector plunge, its shares falling $1.17, or 13.6 percent, to $7.42 in afternoon trading.

Shares of D.R. Horton Inc., Centex Corp., Pulte Homes Inc. and KB Home were each down by more than 10 percent.

Many on Wall Street were looking to the government's bailout plan to help ease the credit crunch that has made it tougher for businesses and individuals to borrow money. But the measure was defeated during an afternoon vote in the House, as lawmakers rejected the plan 228-205.

Homebuilders have seen orders for their new homes plummet, in part, as would-be homebuyers have found it harder to obtain financing.

Shares of Fort Worth, Texas-based D.R. Horton fell $1.55 or 11.2 percent, to $12.26 in afternoon trading.

Bloomfield Hills, Mich.-based Pulte Homes' shares fell $1.87, or 11.5 percent, to $14.35, while Dallas-based Centex Corp.'s shares fell $1.81, or 10.5 percent, to $15.49.

Shares of Los Angeles-based KB Home tumbled $2.26, or 10.5 percent, to $19.30.

Miami-based Lennar Corp.'s shares slipped $1.40, or 9.2 percent, to $13.88.

Shares of Atlanta-based Beazer Homes USA Inc. fell 52 cents, or 8.4 percent, to $5.66.