Not since February 1995 have so few new houses been sold in the US.

New data from the Commerce Department reveals that new homes sales fell in February for the fourth straight month, as the slump in US housing continues.

The data shows that new home sales dropped 1.8% last month to a 590,000 units, a worse decline than forecast.

This is bad news for the economy. According to AP:

The prolonged slump in housing has dragged down overall economic activity. Many analysts believe the slump could combine with a multitude of other problems including a severe credit crunch, soaring energy prices and plunging consumer confidence, to push the country into a full-blown recession.

“Today we found also found out that the numbers on durable goods for February came out this morning, and they surprised economists by dropping 1.7%,” says Charles Delvalle.

“So it looks like consumers AND businesses are starting to cut back on buying. This is something that will continue to work its way through our economy for at least the next few months.”

Charles’ trading system tells him that the Dow should fall further on all this economic doom and gloom. To find out how to profit from the current downturn, click here.