Sales of new homes dropped to lowest point since statistic was kept. 2.2% drop. January figures were revised slightly upwards, but the Feb numbers were significantly lower than expected - in part due to weather issues.

Sales of newly built U.S. single-family homes fell for a fourth straight month to a record low in February, a government report showed on Wednesday, heightening fears of renewed weakness in the housing market.

The Commerce Department said sales fell 2.2 percent to a 308,000 unit annual rate from an upwardly revised 315,000 units in January.

Analysts polled by Reuters had expected new home sales to edge up to a 320,000 unit annual pace from January’s previously reported 309,000 units.

The data came on the heels of report on Tuesday showing existing home sales fell for a third straight month in February and a jump in the supply of houses on the market.

Sales have barely responded to the extension and expansion of a popular tax credit, which boosted purchases in the second half of 2009, raising concerns over the fragile housing market’s recovery just as a key pillar of support is being dismantled.

It’s also hard to buy a home when unemployment remains high - and if you’re trying to sell after losing (or about to lose a home via foreclosure), you’re not going to be able to downsize/buy a home because you don’t have any income to show for it.