MONTGOMERY, AL (WSFA) - Kevin Wallace is all smiles, grinning over what he considers a good deal. Wallace refinanced his 30-year fixed mortgage.
"It's now four and a half percent and my payments are $125.00 less a month," said Wallace.
And on top of that Wallace won $100.00 in a social media competition connected with Anchor Mortgage.
Although not everyone will win a hundred bucks, there is money to be saved. Right now, the 30-year fixed rate on a conventional loan is between 4.25% and 5%.
On a 15-year old fixed loan, the rate ranges from 3% to 3.75%, both types of loans require a down payment of a minimum of 3%.
"I tell people when the stock market tanks.. that's when people end up taking money out of the stock market and putting it in bond money, meaning there's more money to lend," said Anchor Mortgage owner Vicki Williams.
In the River Region homes priced between $125,000 to $250,000 are leading the way in sales. In fact, new home sales for the entire state jumped more than 15% in June over the previous month and existing home sales increased a little more than 11% during the same time frame.
For lenders like Williams it's a catch .22; a struggling economy often means lower rates, and lower rates could potentially mean more business.
"This was very beneficial to me," said Wallace.
While there's no way of knowing when the overall economy might improve, Williams is convinced for now the mortgage rates will remain relatively low.