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.
