by Calculated Risk on 7/26/2006 05:28:00 PM

Although I don't mention every home builder, Pulte is #2 in the U.S., so ... Reuters reports: Pulte quarterly earnings and orders tumble

Pulte Homes Inc., the No. 2 U.S. home builder, on Wednesday said its quarterly profit fell 20 percent and new orders dropped 30 percent, underscoring the slowdown in the U.S. housing market.

Pulte had already warned, so this isn't a big surprise. From the Pulte PR:

"Our second quarter results reflect the changing dynamics being experienced in the homebuilding industry," said Richard J. Dugas, Jr., President and CEO of Pulte Homes. "After several years of limited house inventory and robust demand, the supply of homes for sale continues to increase, while greater buyer uncertainty about purchasing a home at this time is being further impacted by their inability to sell existing homes and the effect higher prices and interest rates are having on overall affordability.

"We continue to adjust key business tactics to effectively meet the more challenging operating environment we face in many markets today.

UPDATE: Here is a list of the top U.S. home builders, the 2005 Top 10: D. R. Horton, Pulte Homes, Lennar, Centex, KB Homes, Beazer Homes, Hovnanian Enterprises, Ryland Group, M.D.C. Holdings, NVR. I've mentioned Standard Pacific before (#11) and Toll Brothers (#14). I currently have no position in any home builder.

UPDATE 2: Quotes of the day from: Mortgage lenders grapple with deflating housing bubble

"I've never seen a soft-landing in 53 years, so we have a ways to go before this levels out," Countrywide Chief Executive Officer Angelo Mozilo said on a Tuesday conference call. "I have to prepare the company for the worst that can happen."
...
Countrywide's Mozilo said. "The only thing that's really holding back the dam now is that we have good employment numbers."