Sales of Existing U.S. Homes Fall for Third Straight Month

At the current sales pace, it would take 5.2 months to sell houses compared with 5 months at the end of February. That still constitutes a “tight” market that favors sellers over buyers, Yun said.

While existing home sales have improved since hitting a low pace of 3.45 million in July 2010, rising interest rates and higher prices have pushed transactions down from a post- recession high of 5.38 million reached in July 2013.

The average rate on a 30-year, fixed mortgage fell to a six-week low of 4.34% in the week ended April 17. A year ago, the rate averaged 3.41%, according to Freddie Mac in McLean, Virginia.

Work began on fewer new homes than forecast in March, Commerce Department data showed last week. Builders also have fewer houses in the pipeline, with the number of permits declining 2.4% last month.

Mortgage Lending

Housing’s slow recovery is being felt by mortgage lenders, many of which have cut staffing. Since the beginning of the year, Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. have eliminated workers in their mortgage divisions.

At PNC Financial Services Group, loans used to buy homes fell to $1.9 billion in the first quarter compared to $4.2 billion a year earlier, Chief Financial Officer Rob Reilly said. Total revenue for the Pittsburgh-based bank could fall this year in part because of reduced demand for mortgages, he said.

“We announced expense reductions in residential mortgage during the fourth quarter of last year and we have fully captured those savings,” Reilly said on an April 16 earnings call. “In this environment, we will remain focused on disciplined expense management.”