New home sales have hit a record low. In January, the sales of newly-built homes dropped by 10%. Builders are cutting back as they attempt to move the inventory they already have. CNN Money reports on the expectations for new home sales:

The decline in new home sales comes as builders continue to scale
back construction and work off an inventory of empty properties, said
Adam York, economic analyst at Wachovia Economics Group.

"We
expect sales activity will remain constrained over the coming months as
buyers struggle with access to credit and worry about their income
prospects and the U.S. economy," York wrote in a research report.

It may be a good time to buy — with low prices and even lower interest rates. However, many would-be buyers are having a hard time getting approved for home mortgage loans. With mortgage lenders requiring bigger down payments and better credit scores, many who would have qualified for a home two years ago are finding it increasingly difficult to get the financing they need.