Sales of recently built homes fell back in February, as harsh weather and high costs held back buyers.
New-home sales dropped 3.3% from January to a seasonally adjusted annual rate of 440,000 last month, the Commerce Department said Tuesday. Economists had expected sales to drop after an unexpected surge in January.
Economists, though, anticipated a slightly better showing. The median forecast for those polled by Bloomberg News was for an annual rate of 445,000. January's rate was also revised downward from 468,000 to 455,000.
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The report comes as builders have expressed pessimism over the new-home market. Developers have said a shortage of ready-to-build lots, few skilled workers and rising building costs have held them back.
