A sharp drop in new-home sales last month and mixed quarterly reports from a slew of homebuilders demolished hopes the housing market was working its way out of a recent slowdown.

New-home sales in June dropped 8.1% from the prior month to an annualized rate of 406,000, said the Commerce Department, missing views for 475,000. Meanwhile, May was revised down to 442,000 from a six-year high of 504,000.

Impairment charges affected D.R. Horton's (DHI) third-quarter earnings, which fell 23.8% to 32 cents a share, far below analyst estimates for 49 cents a share, while revenue rose 28.2% to $2.09 billion, just falling short of views.

The largest homebuilder in the country reported pretax charges of $54.7 million related to inventory impairments tied to communities in the Chicago housing market, which remains weak. Horton said it had taken efforts to boost sales and cash flow while reducing inventories and returns there.

But net new orders climbed 25% in the quarter to 8,551, and the number of homes in its backlog rose 15% to 11,365.

Horton also acquired the Georgia-based Crown Communities for $210 million during the quarter.

Shares of D.R. Horton plunged 8.5% in the stock market today.

A 12% boost in average selling price drove up PulteGroup 's (PHM) revenues, offset by a 9% drop in closings. The company's per-share earnings grew 22% to 11 cents, excluding charges of 14 cents for insurance reserves and office relocation costs.

Analysts, who included the charges in their estimates, were looking for EPS of 25 cents, in line with unadjusted figures.

"Demand for PHM homes was slightly better than our forecast, and expense controls produced EPS in line with our assumption excluding charges for insurance reserves and the relocation of the corporate headquarters to Atlanta," said Sterne Agee analyst Jay McCanless in a note.

Revenue edged up 0.5% to $1.29 billion, missing estimates for $1.33 billion. Orders fell 2.2% to 4,778, and backlog slid 4.4% to 8,179.

Shares fell 2%.

M/I Homes (MHO) Q2 earnings rose 76% to 44 cents a share, or 31 cents excluding items. Analysts had predicted EPS of 28 cents. Revenue rose 20.1% to $281.6 million, besting estimates for $264.7 million.

But new contracts were down 6% to 1,016 "due primarily to delays in opening new communities and lower traffic levels," the builder said.

Shares tumbled 6%.

Meritage Homes (MTH) earnings increased 14.9% to 85 cents a share, beating by 4 cents. Revenue rose 12.4% to $505.6 million, above views for $514 million, helped by a 12% climb in average selling price.

Orders ticked up just 0.6% to 1,647, though order growth was strong in Texas and the Carolinas.

Shares slumped 5%.