Hovnanian Enterprises swung to a third-quarter loss as it continues to navigate a challenging housing market, plagued by steep rates and soft consumer sentiment.

The home builder on Thursday posted a loss of $1.8 million for its three months ended July 31, compared with a profit of $16.6 million a year earlier. On a per-share basis, the company reported a loss of 70 cents a share, compared with earnings of $1.99 a share the year prior.

Total revenues fell 12% to $705.7 million.

Home-building gross margin percentage, before cost of sales, interest expense and land charges, was 14.6%, down from 17.3% in the prior-year's third quarter.

Chief Executive Ara Hovnanian said the latest quarter's results were generally in line with the guidance the company previously issued.

"We remain focused on improving execution while continuing to navigate a housing market challenged by affordability concerns, elevated mortgage rates and inconsistent consumer confidence due to geopolitical and economic uncertainty," he added.

For the current quarter, total revenue is expected to be between $800 and $900 million, and adjusted home-building gross margin is expected to be between 15% and 16.5%.

Shares fell 7.5% to $118.02 in early morning trading.