Shares in homebuilders dropped in early trading Wednesday after one of the nation’s largest homebuilders reported dismal earnings and a separate report showed that would-be home buyers remain on the sidelines despite recent drops in interest rates.

Dallas-based homebuilder Centex Corp. reported a fourth quarter loss of nearly $1 billion, mainly due to write downs for the value of unused land it still holds. And the company’s chief executive didn’t provide any hope that the housing slowdown will ease soon.

Separately, the Mortgage Bankers Association released its weekly lending report that showed while mortgage volume increased 7.5 percent during the week ended Jan. 25, the jump was mainly due to refinances. Refinances accounted for 73 percent of total applications for the week.

In fact, the association’s purchasing volume index fell 18 percent, indicating homebuyers remain skeptical. Average rates for one-year adjustable rate mortgages increased to 5.7 percent from 5.51 percent while 30-year fixed-rate mortgages rose to 5.6 percent from 5.49 percent. The average rate for 15-year fixed-rate mortgages, which are mainly used for refinances, also rose to 5.04 percent from 4.95 percent.

Shares in Los Angeles-based KB Home dropped 3.5 percent to $25.27 in early trading while Calabasas-based Ryland Group Inc. lost 4.7 percent to $30.82 in trading on the New York Stock Exchange. Shares in KB have gained 55 percent so far this year while shares in Ryland have added nearly 50 percent after both plunged near the end of 200