For a second straight week, average rates for fixed-rate mortgages had dropped, according to the most recent survey conducted by government-backed mortgage purchaser Freddie Mac.

The further reduction in rates is generally considered a good sign pointing towards housing market recovery, although the rates weren’t quite as low as they were six weeks ago, when record low rates were reported.

Freddie Mac’s survey has 30-year fixed-rate mortgages down from 3.59 percent to 3.55 percent and 15-year fixed mortgages steady at 2.86 percent. Both rates are 0.06 percent short of the record lows reached late this July – at that time, 30 and 15-year fixed-rate home loans averaged 3.49 percent and 2.80 percent respectively.

The lower rates have been credited for an increase in sales figures for both previously occupied and newly constructed residences.

Due to the reduced supply and increased demand for homes, prices have been going up for most of 2012. An improvement in builder confidence has also been observed due to the improved home sales and steadily decreasing mortgage rates.

However, the housing market is still quite far away from making a complete recovery and being considered healthy. Not even the forecasted increase in sales of previously occupied homes is expected to bring the housing market back to healthy levels. A lot of individuals cannot qualify for the lowest possible mortgage rates; it isn’t uncommon for those who could qualify to have previously refinanced their homes.