Mortgage rates in the U.S. fell for the first time in three weeks, boosting the potential for further stabilization in the housing market.

Lower rates may increase requirement for homes in the fourth year of the housing recession. New and existing-home sales get increased in June as falling prices and a government tax credit lured buyers. The S&P/Case-Shiller home price index rose 0.5 / cent in May from the prior month, the first gain since July 2006.

The Federal Reserve’s $1.25 trillion plan for buying mortgage-backed securities helped drive rates to a record low 4.78 / cent twice in April. Falling rates helped boost refinancing and purchase applications for home loans.

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