US existing home sales fall more than expected in February

Sales of existing US homes fell 7.1% to a seasonally-adjusted rate of 5.08m in February, hitting their lowest level since November, according to data from the National Association of Realtors.

Economists had expected sales to drop by a much more modest 2.8%.

Sales were up 2.2% from the same month a year ago, while the median price for a home rose 4.4% from February 2015 to $210,800.

Lawrence Yun, NAR chief economist, said: "Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest.

"The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers."