New single-family home sales fell to the lowest level since last September in February, declining 3.3 percent from a downwardly revised January figure to a 440,000-unit annual rate (seasonally adjusted). Harsh winter weather was the primary cause of the downfall, but a recent downturn in homebuilder confidence and ongoing struggles in new home construction could foreshadow a deeper trough for the housing market than economists expected this year.

Sales of new single-family homes fell to a five-month low in February, declining 3.3 percent to a seasonally adjusted annual rate of 440,000 units, the lowest level since last September.

January's sales were revised down to a 455,000-unit pace from the previously reported 468,000-unit rate, according to a March 25 report from the Census Bureau.

Sales in the Northeast tumbled 32.4 percent in February, the biggest monthly decline since October 2012, which economists are again chalking up to poor winter conditions. Sales fell 1.5 percent in the South, the latter of which also experienced harsh weather. Sales increased by 36.7 percent in the Midwest, the only region that showed improvement in February; a 15.9 percent sales decline in the West, however, could indicate that the housing market's current weakness is more than just weather-based.

The supply of new houses on the market hit the highest level since December 2010, but inventory remains low. At February's sales pace it would take 5.2 months to clear the supply of houses on the market, up from 5.0 months in January and the most since last September. A six-month inventory supply is typically considered a healthy balance between supply and demand.

The median price of a new home fell 1.2 percent from February 2013 to $261,800; the decline was the largest monthly drop-off since June 2012. The average sales price was $317,500.