WASHINGTON - March 23, 2010 - Sales of existing homes fell for a third straight month in February, pushing sales down to the lowest level since last July. There is concern the fragile housing rebound is faltering, making it harder for the overall economy to recover.

The National Association of Realtors said Tuesday that sales of previously occupied homes dropped 0.6% in February, to a seasonally adjusted annual rate of 5.02 million.

The weakness in sales depressed prices with the median home price dropping almost 2% from a year ago, to $165,100.

Sales activity varied across the country. In the Midwest, sales jumped almost 3%, and were up more than 2% in the Northeast. In the South, sales fell about 1%, and were down almost 5% in the West.

"A number of housing markets may be stabilizing or starting to rebound, though we do not yet see, in many respects, a sustained nationwide recovery," said Jeffrey Mezger, president and chief executive officer, of KB Home, which builds homes in 10 states. The company reported a $55 million quarterly loss on Tuesday.