ROCKFORD (WIFR) -- The Stateline housing market is proving the economy is heading in a positive direction.

Byron Resident Todd Henry said, "We had looked at renting, and initially that's exactly what I thought we were going to do."

Henry just moved to Byron from Downtown Chicago where he paid one-thousand dollars a month in rent for an apartment. Now he pays 675 dollars a month for an entire house on an acre and a half.

Henry said, "Purchasing a house just seemed economically the smartest thing with interest rates as low as they are in the housing market--perfect for first time home buyers."

Rockford Area Realtors report sales jumped 35-percent from 160 homes sold last January to 216 homes sold this January. This is the highest total for the month since the housing recession began five years ago.

Steve Bois from RAAR said, "We have eight months that we've had of improvement year over year for the last 8 months in a row. Last time we saw that, that was over a decade ago in 2001."

Buyers like Henry, who bought this foreclosed home, are finding deals that are too good to pass up. Freddie Mac says their monthly average mortgage rate fell to 3.87 percent down from 3.98 percent--the lowest it's seen since 19-71.

Steve Bois, "It's still a buyers market, education is starting to get out there. First time home buyers seem to be more confident now. The jobs recovery certainly is a plus, and interest rates are historically low.

Steve Bois says deals like the one Henry found along with stronger consumer optimism gives the housing market the positive movement it needs for 2012.

Steve Bois says Chrysler hiring 18-hundred jobs this January will also help keep strong housing numbers for the Stateline.