The U.S. Census Bureau reported that new home sales dropped in February, which could come as bad news for those who use construction equipment to build houses.
New home sales came in at a seasonally adjusted annual rate of 308,000 during the second month of the year. That represents a 2.2 percent drop when compared to the 315,000 seen in January. It is also 13 percent less when compared to February of last year.
According to the National Association of Home Builders, the numbers posted in February mark a new record low for home sales. David Crowe, chief economist for the NAHB, said a number of factors may have played into the drop in home sales. Those include bad winter weather seen in February and the fact that many consumers are still nervous about the possibility of losing their jobs.
"That said, we are still expecting to see some improvement in consumer demand as the deadline for taking advantage of home buyer tax credits nears," Crowe said.
The tax credit from the government gives first-time buyers up to $8,000 for the purchase of their first home. However, the credit is set to expire at the end of April.