By John Spence
BOSTON (MarketWatch) -- Home-builder stocks traded lower Wednesday after the Commerce Department reported sales of new homes fell nearly 4% in September, the first decline since March. The SPDR S&P Homebuilders ETF (XHB 14.12, -0.48, -3.29%) was down 3% in midday trade, with Hovnanian Enterprises Inc. (HOV 3.94, -0.36, -8.40%) , Beazer Homes USA Inc. (BZH 4.47, -0.35, -7.26%) and Lennar Corp. (LEN 12.72, -0.93, -6.81%) among the sector's biggest percentage decliners. "Overall, we think today's weak number supports our contention that based on waning government stimulus the housing recovery could end up being W-shaped; however, today's disappointing report may end up altering the current debate about the homebuyer tax credit extension," Deutsche Bank said in a research note Wednesday.
