CARBONDALE - Construction of houses in the Creekside Subdivision on Carbondale's west side could raise some eyebrows if one follows national news about America's housing crisis and its contribution to the economic recession.

Southern Illinois real estate agents and mortgage officers say with interest rates hovering around 5 percent - the lowest in nearly 40 years - it is an excellent time to obtain a new or refinance an existing mortgage. It requires prudence, honest thinking and planning, they say.

"Even though there has been some leveling off in our housing industry and new home construction, it's not nearly the rate of other parts of the country. But there's still a fear out there," said Terri Henry, a broker-associate with RE/MAX Realty Professionials.

She said her office sold more than $30 million in property in 2008, and home values have remained steady without drastic drops or increases.

Executive vice president Stephen Schauwecker of First Southern Bank in Carbondale said he is seeing an amazing reversal in the home mortgage business.

"It was basically dead 45 days ago, and the lowest amount of activity since the bank opened for business in 2002. Now, it's at maximum levels. Housing is still a good investment," Schauwecker said, noting he is seeing more customers refinancing their existing mortgages.

People who are considering new mortgages or refinancing need to take an honest appraisal of their own situations, such as job permanency and other practical matters, Schauwecker said.

Many loans are available, such as rural development loans that require no money down and have 30-year fixed rates, he said.

scott.fitzgerald@thesouthern.com / 351-5076