The current coronavirus situation has completely altered the daily lives of nearly everyone in the world. With millions of workers not knowing when they will collect their next paycheck, the US economy is starting to take a major hit. One of the economic sectors that is getting hit the hardest is the real estate market. This is causing mortgage rates to drop drastically throughout the country. They are even dropping in cities that typically have extremely strong real estate markets like San Diego.
The beautiful weather, picturesque location and strong job market have made San Diego one of the most desirable places to live for a very long time. This high demand also makes it one of the most expensive cities in the United States. Buying a home in San Diego can be tough for the average American, but it is about to get a lot easier.
The downturn in the real estate market has lowered the average interest rate on a 30-year mortgage to 3.19 percent, which is the lowest they have ever recorded. The interest rates have dropped a full percentage point in just the last two weeks. They were also hovering near 5 percent at this time last year.
The dropping interest rates may not seem like a big deal, but it will save new home buyers a lot of money on their mortgage payments. Since the average home in San Diego costs nearly $600,000, the all-time low interest rates will save a family nearly $400 on their monthly mortgage payments. This savings may help a lot of people afford their dream home. Current home owners in San Diego can also take advantage of the savings by refinancing their mortgage.
Since the coronavirus situation does not seem like it will be going away any time soon, the real estate market in San Diego is destined to undergo a lot more changes in the coming months. A lot of people are simply going to be unwilling to make a huge purchase when there is so much uncertainty going on in the world. This creates the ultimate buyer’s market. If you have the financial stability, then there may never be a better time to buy a home in San Diego than right now.