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A new home is being built next to a home with a for sale sign on a street in Vienna, on the morning the National Association of Realtors issues its Pending Home Sales for February report, in Virginia March 27, 2014. CREDIT: REUTERS/LARRY DOWNING

New home sales dive to eight-month low in March

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Sales of new U.S. single-family homes tumbled to their lowest level in eight months in March, dealing a setback to the housing market recovery.

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The Commerce Department said on Wednesday sales dropped 14.5 percent to a seasonally adjusted annual rate of 384,000 units, declining for a second consecutive month.

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