Construction starts on new homes declined 16 percent from December to January and have fallen more than 20 percent since a recent peak in November, when the market reached the highest construction pace since 2008. While cold weather throughout most of the country is a contributing factor, a recent dip in homebuilder confidence may signify greater uncertainty in the industry before the spring.

Housing starts fell to a seasonally adjusted annual rate of 880,000 units from December to January, a 16 percent loss that returned the rate to its lowest level since September. Both single-family homes and apartments saw declines, according to the Commerce Department's February 19 report.

January's total, which analysts attributed to poor weather conditions, was down from an upwardly revised December rate of 1.05 million new homes built, marking the largest monthly decline since February 2011. Construction on new U.S. homes has pulled back after surging in November to the fastest pace since 2008.

Construction of new single-family homes remains slow, with starts down 15.9 percent in January from a month earlier and 6.7 percent from the January 2013 rate. Building permits, a sign of future construction, fell 5.4 percent in January to a seasonally adjusted annual rate of 937,000 units, from December's upwardly revised rate of 991,000.