** Shares of U.S. homebuilders D.R. Horton DHI.N and Lennar LEN.N after Wedbush downgrades to "underperform" from "", with price target unchanged
** DHI falls 1.78% to $159 and LEN down 1.77% at $164.84
** "2024 has been the most "" year we have seen for the homebuilding industry since 2019 in terms of seasonality," says brokerage, anticipating a stock decline in the summer after spring buying season
** Brokerage says rising home inventory in the market could be a "potentially catalyst" for homebuilder shares
** With elevated mortgage rates, homebuilders have raised discounts and lowered base home prices to spur sales, leading to a decline in gross margins, a trend that could continue, says brokerage
** Shares of Lennar and D.R. Horton have risen about 60% and 66% in last 12 months, respectively
(Reporting by Ananta Agarwal in Bengaluru)