While the housing market provides an optimistic view, experts say the economy still has a long way to go in the upcoming quarters.
“We [did] not previously have a decline in house prices since the 1940s so we don't know for sure, but six months of price rises may deter people from renting," said Larry Kantor, head of research at Barclays Capital.
To battle some of the housing woes, the federal government recently released a new initiative to purchase $40 billion of mortgage-backed securities until the job market progresses.
According to Freddie Mac, the federal government has also pushed mortgage rates to record lows.
However, challenges still lie ahead with tight lending restrictions, large numbers of underwater homeowners, and large quantities of foreclosures still looming.