According to the latest estimates, the total average mortgage rates for the long term have fallen indicating that the housing market might record growth in the coming months.

The average 30-year fixed-rate home loan rate fell to 4.32 per cent this week from 4.5 per cent recorded in the previous week, according to Freddie Mac survey. The rate is below 4.58 per cent recorded in the previous week. The average 15-year fixed rate has fallen to 3.37 per cent from 3.54 per cent in the previous week, according to the report by Freddie Mac.

Interest rates have fallen since the Federal Reserve indicated in a recent meeting that it is not planning to roll back its $85 billion bonds buying programme aimed at boosting growth in the world's largest economy. The stimulus package is aimed at keeping the rates down for consumers and businesses.

The rates had risen more than a full percentage point since early May due to concerns that the early roll back by the US central bank could affect the economic growth. Experts have said the rates are likely to fall below 4 per cent in the US housing market.