For the first time in three weeks, mortgage rates have fallen increasing the chances of stabilization in the housing market.

The mortgage rate had been stable since 30 years and dropped to 5.22 percent from 5.25 percent. It is expected that new lower rates may increase demand for homes in the fourth year of the housing recession. Sales of new and existing homes increased in June as falling prices and a government tax credit attracted buyers. The home price index rose 0.5 percent in May from the prior month, the first gain since July 2006.

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It was said by Warren Buffet a Billionaire investor that a recovery in the U.S. economy will take time as signs of any rebound is not being seen by him at his businesses spanning retailing, manufacturing and energy.

Buffett is the chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. Buffet told CNBC that In terms of the economy coming back, it will take sometime. He further said that “Everything we see about the economy is we’ve had no bounce.”

It was said by the Commerce Department on May 31 that the U.S. gross domestic product has fallen in the first quarter, it is dropping at an annual pace of 5.7 percent, the said May 31.

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