Invest money

Sales of U.S. previously owned homes fell in March after jumping a month earlier by the most in more than five years. Purchases decreased 3 percent to an annual rate of 4.57 million, lower than forecast, from 4.71 million in February.

Record-low mortgage rates and a foreclosure-driven plunge in prices are making houses more affordable, helping the market stabilize following the biggest slump since the Great Depression.

Freddie Mac Acting Chief Financial Officer David Kellermann, 41, was found dead early today in the basement of his home in a Washington suburb, police said.

According to poice, the death is still under investigation. Early reports indicated Kellermann’s wife reported a suicide. The medical examiner’s office said it’s conducting an autopsy, and the results may be released as soon as today.

David Kellermann was named acting chief financial officer in September 2008. As acting chief financial officer, Kellermann is responsible for the company’s financial controls, financial reporting, tax, capital oversight, and compliance with the requirements of Sarbanes-Oxley. He also oversees the company’s annual budgeting and financial planning processes.

Morgan Stanley, tumbled 9 percent after posting a wider-than-estimated loss. Morgan Stanley fell $2.21 to $22.44. The bank reported a loss of 57 cents a share, wider than the 8-cent deficit estimated by analysts as real-estate and debt-related writedowns overwhelmed trading gains. The company also cut its dividend to 5 cents a share from 27 cents.

The International Monetary Fund said the global recession will be deeper and the recovery slower than previously thought. IMF said in a new forecast released today that the world economy will shrink 1.3 percent this year, compared with its January projection of 0.5 percent growth. The lender predicted expansion of 1.9 percent next year instead of its earlier 3 percent projection.

U.S. stocks declined, as concern grew that credit losses are worsening. Bank of America Corp., tumbled 13 percent as rising charge-offs for uncollectible loans overshadowed better-than-estimated earnings. Citigroup Inc. dropped after Goldman Sachs Group Inc. said the bank’s credit losses are growing at a “rapid rate.” Although Citigroup posted first-quarter net income of $1.6 billion last week, it suffered an “underlying” loss of 38 cents a share.

• General Growth Properties Inc., the second-biggest shopping mall owner, filed for Chapter 11 protection from creditors.
• JPMorgan, the largest U.S. bank by market value, posting a record of fixed-income trading revenue and saying it can repay U.S. rescue funds. JPMorgan climbed 2.3 percent.
• Americans filed claims for jobless benefits last week even as insured unemployment rose to the highest level in 26 years. Initial claims decreased by 53,000 to 610,000 in the week ended April 11.

Retail sales in the U.S. unexpectedly fell in March as soaring job losses forced consumers to save money. The 1.1 percent decrease followed a 0.3 percent gain in February. Auto dealers, electronics stores and restaurants led the decline. Less consumer spending heading into the second quarter means the recession is likely to persist.

Asian stocks climbed for a third day as Japanese Prime Minister Taro Aso doubled stimulus spending and Chinese lending jumped by a record. Treasuries rose, following three weeks of losses. The yen fell against all of the other major currencies on speculation the global financial crisis is easing.