I have done a fresh installation and now am getting the below error,
[ INFO  ] Updating hosted-engine configuration
[ INFO  ] Stage: Transaction commit
[ INFO  ] Stage: Closing up
          The following network ports should be opened:
              tcp:5900
              tcp:5901
              udp:5900
              udp:5901
          An example of the required configuration for iptables can be found at:
              /etc/ovirt-hosted-engine/iptables.example
          In order to configure firewalld, copy the files from
          /etc/ovirt-hosted-engine/firewalld to /etc/firewalld/services
          and execute the following commands:
              firewall-cmd -service hosted-console
[ INFO  ] Creating VM
[ ERROR ] Failed to execute stage 'Closing up': Cannot set temporary password for console connection. The VM may not have been created: please check VDSM logs
[ INFO  ] Stage: Clean up
[ INFO  ] Generating answer file '/var/lib/ovirt-hosted-engine-setup/answers/answers-20151126145701.conf'
[ INFO  ] Stage: Pre-termination
[ INFO  ] Stage: Termination
[root@he ovirt]# tail -f /var/log/vdsm/
backup/           connectivity.log  mom.log           supervdsm.log     vdsm.log          
[root@he ovirt]# tail -f /var/log/vdsm/vdsm.log 
Detector thread::DEBUG::2015-11-26 14:57:07,564::protocoldetector::247::vds.MultiProtocolAcceptor::(_handle_connection_read) Detected protocol xml from 
127.0.0.1:42741Detector thread::DEBUG::2015-11-26 14:57:07,564::BindingXMLRPC::1173::XmlDetector::(handleSocket) xml over http detected from ('127.0.0.1', 42741)
Detector thread::DEBUG::2015-11-26 14:57:07,644::protocoldetector::187::vds.MultiProtocolAcceptor::(_add_connection) Adding connection from 
127.0.0.1:42742Detector thread::DEBUG::2015-11-26 14:57:08,088::protocoldetector::201::vds.MultiProtocolAcceptor::(_remove_connection) Connection removed from 
127.0.0.1:42742Detector thread::DEBUG::2015-11-26 14:57:08,088::protocoldetector::247::vds.MultiProtocolAcceptor::(_handle_connection_read) Detected protocol xml from 
127.0.0.1:42742Detector thread::DEBUG::2015-11-26 14:57:08,088::BindingXMLRPC::1173::XmlDetector::(handleSocket) xml over http detected from ('127.0.0.1', 42742)
Detector thread::DEBUG::2015-11-26 14:57:08,171::protocoldetector::187::vds.MultiProtocolAcceptor::(_add_connection) Adding connection from 
127.0.0.1:42743Detector thread::DEBUG::2015-11-26 14:57:08,572::protocoldetector::201::vds.MultiProtocolAcceptor::(_remove_connection) Connection removed from 
127.0.0.1:42743Detector thread::DEBUG::2015-11-26 14:57:08,573::protocoldetector::247::vds.MultiProtocolAcceptor::(_handle_connection_read) Detected protocol xml from 
127.0.0.1:42743Detector thread::DEBUG::2015-11-26 14:57:08,573::BindingXMLRPC::1173::XmlDetector::(handleSocket) xml over http detected from ('127.0.0.1', 42743)