Potential home buyers sitting on the fence may now have a pretty good reason to take the plunge. Interest rates are now at historic lows.

Jeff Nelson has been watching interest rates fall for weeks now. He and his wife Rachel decided to refinance their Tucker home because rates have fallen to historic lows.

“[We're] going from a 6.375 to a 4.875 [which means savings every month of] about $170,” said Jeff Nelson.

The Nelsons aren’t alone.

At America’s Discount Home Loans in Norcross, loan officers have been busy taking applications. Their boss shaved his head because he promised to do so if loan applications topped what they were last month.

“We hit the high mark for this month so off came the hair. So times are definitely looking up for the mortgage industry,” said Steve Cook.

Steve Cook said if someone has a loan of $200,000 at 6.125 percent and refinances at 4.77 percent they can save $172 a month.

But refinancing with these historically low interest rates won’t work for homeowners considered to be upside down — where they owe more on their mortgages than their homes are worth.

“If somebody is upside down — they’re paying their mortgage — we’re not giving them a loan. They’re sitting tight for a while,” said Cook.

The lower interest rates also mean better deals for first time home buyers who have many lower priced homes to choose from because home prices have bottomed out.

“Someone sitting on the fence, you may wait and lose the bargain, this is the perfect storm to purchase in my professional opinion,” said Greg Martin, President of ERA Sunrise Realty.

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