Toll Brothers gave weaker-than-expected guidance on Tuesday for the first quarter, pointing to reports about a souring housing market as the cause of the slowdown.

"In November, we saw the market soften further, which we attribute to the cumulative impact of rising interest rates and the effect on buyer sentiment of well-publicized reports of a housing slowdown," Toll Brothers Chairman and CEO Douglas Yearley said in a statement.

Reports of a housing slowdown come as U.S. Census data show new home sales have declined for 11 straight months.

In October, sales of newly built homes fell 12 percent from a year earlier, even though the median price for new homes dropped. Economists have said the decline in new home sales stems from weakened affordability across U.S. local markets. The housing market has begun showing signs of cracking this year, while real estate brokers are saying that offers for homes have thinned out.

Toll Brothers shares closed down 1.6 percent on Tuesday.