ST. JOSEPH COUNTY — Record low interest rates have a lot of people asking a lot of questions about the housing market. Like: Should I refinance or should I buy a home?

Real estate professionals say after a miserable fourth quarter, people are beginning to nose around the local market.

"We are seeing some activity in purchase, which is good," said Dianna Jackson, a loan originator with Cressy & Everett. "We are seeing a lot of activity in the refinance — people looking, trying to reduce their monthly costs."

According to the St. Joseph County Multiple List Service, the total market volume in sales was down In 2008 by 26 percent. The quantity of homes sold was down by 20 percent and the average sales price was down 7 percent.

"Obviously, the first month isn't over yet to assess, but the traffic has increased," said Steve Bizarro, a local real estate professional.

Bizarro says lower gas prices and property taxes are part of the reason, as well as record low interest rates.

"In some cases it's a once in a lifetime opportunity," Bizarro said. "The stars are aligning, so to speak, with interest rates down, pricing down and inventory rates up. For people it's inevitable if they're going to be buying in the next several years, that they'll go ahead and take advantage of the market we are seeing today."

Bizarro says he's sold five homes this month, mainly to first-time home buyers and people who recently moved here.

Bizarro and Jackson say homeowners are also sizing up the market, many wondering if they should refinance their home while interest rates are low.

Jackson believes consumers may see the 4 percent or 4.5 percent rates they've been hearing about.

"Maybe it will, maybe it won't, I don't know how anyone can know in this volatile market," she said.

She says refinancing may only be profitable for some people.

"You look at the payback, and then if it makes sense you do it," she added.

Jackson and Bizarro agree you need to have a solid job and good credit to get a loan or to refinance, but if you do, banks are lending. For first-time homebuyers, there is also a federal $7,500 tax credit.

The bottom line? If you're in the market to buy, now may be one of the best times ever.