WASHINGTON — The government reports that sales of new homes fell in February for a fourth straight month as the steep slump in housing continues.

The Commerce Department reported Wednesday that new home sales dropped 1.8 percent last month to a seasonally adjusted annual rate of 590,000 units, the slowest sales pace since February 1995. The decline was slightly worse than expected.

The median price of a home sold last month dropped to $244,100, down 2.7 percent from the level of a year ago.

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

Orders to factories for big-ticket manufactured goods fell for a second straight month in February, a worse-than-expected performance that provided more evidence of the economic troubles gripping the country.

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