Record-low interest rates are drastically affecting area economies.
According to real estate experts, the latest housing market trend is refinancing.
They say it could be a big help to our local economy.
With interest rates at an all time low…
"We can get you below four percent and I haven't seen below four percent ever!” Said Rebecca Sharp of American Mortgage Group.
And “for sale" signs flooding the market…
“Last year at this time there were approximately 1,100 homes on the market. This year as of an hour ago there were 1,318 homes on the market,” said Mike Pierce of Remax Southern Properties.
A local mortgage broker says many are choosing to refinance rather than sell or buy. Especially after the tax credit ended in April.
“Once that ended refinances have blown up our office because rates are so low,” said Sharp.
She says this could be a solution for those on the verge of foreclosure.
“If they foresee in the future that there could be a problem, if they refinance now and prevent that they will have a much better chance for themselves as well as the housing market all in Dothan and all in the area,” said Sharp.
Housing-market experts say this is a plus for buyers and sellers alike.
“This is an excellent time...if you want to buy a home you should do it now,” said Pierce.
Overall, experts say, the housing market is just like any other market. It's directly affected by consumer confidence.
"In general when you get into rural America we are still selling houses...so don't get scared. Live the American Dream. Own your own place,” said Pierce.
To qualify for these record-low interest rates you still need good credit and a stable income.
Experts say you can qualify with a 680 credit score or better.
Experts say even if your credit score is lower than 680, you can still find a competitive rate.
They say 5 and 6-percent is more reasonable with a low credit score.