$NVR, the fourth largest homebuilder in the United States, reported its quarterly earnings with a revenue of $2.85 billion, surpassing estimates of $2.83 billion. The earnings per share (EPS) also exceeded expectations at $139.93 compared to the estimated $129.15, reflecting a year-over-year increase of 15.11%. However, the company faced challenges as new home orders fell by 8% year-over-year, contrasting with the anticipated growth of 3%, resulting in a significant shortfall of approximately 10% in unit sales. Additionally, the cancellation rate for orders rose to 17%, up from 13% the previous year. Following the earnings report, $NVR's stock declined by 4% on the day, closing lower after an initial gain of 1%. The weak performance from $NVR also negatively impacted other homebuilders, with $DHI experiencing a similar unexpected decline. Overall, the homebuilding sector faced downward pressure, with the $XHB index dropping by 2% in response to the earnings results.