OMAHA, Nebraska, May 4 (Reuters) - The chief executive of Berkshire Hathaway ( BRK/A )-owned Benjamin Moore said cautious consumers are spending less on paint as elevated inflation and interest rates curb demand to buy and paint homes.

Speaking during Berkshire's annual shareholder event on Friday, Chief Executive Dan Calkins said a recent "little uptick" in home remodeling has not been enough to offset stagnating sales of existing homes.

Those sales dropped 3.6% in March to a seasonally adjusted annual rate of 3.98 million homes, a nine-month low, as Middle East conflict boosted gas prices and undercut household purchasing power, while inflation rose to a nearly three-year high.

The average 30-year mortgage rate rose to 6.30% as of April 30 from 6.15% at year end, according to Freddie Mac. Calkins had hoped the rate might fall below 5% this year, last seen in 2022.

"We were excited when interest rates were on a downslope, and then war broke out and they've sprung back up," he said. "There is a tremendous amount of pent-up demand for housing, but it's an affordability issue because of mortgage rates, and housing prices are holding it back."

Benjamin Moore sells products in 76 countries through more than 8,500 paint, decorating and hardware retailers, including about 6,500 in the United States and 1,500 in Canada. 

"What we're seeing on the ground is some customers who traditionally buy our more premium products are trading down" to mid-range products, Calkins said. "They are spending more on gas and groceries."

Benjamin Moore rivals include Sherwin-Williams ( SHW ) and its Valspar brand, PPG's Pittsburgh Paint and Home Depot's ( HD ) Behr.

Revenue totaled nearly $2 billion in 2025, Calkins said. White and off-white paint accounted for 80% of sales though the company has 3,500 colors.

Calkins, 61, joined Benjamin Moore as a trainee in 1987, and became the Montvale, New Jersey-based company's chief executive in 2019.