Worries about coronavirus (COVID-19) have hammered stocks and sent investors fleeing to the safety of U.S. government debt. And that might be good news if you’re looking for a mortgage. Mortgage rates have plummeted in recent days, possibly making a home in the expensive San Diego market more affordable.

In the past few weeks, rates for a 30-year, fixed-rate mortgage have fluctuated wildly — making monthly payments on an expensive San Diego County home go up or down by hundreds of dollars.

The rate was 3.37 percent Monday morning, said Mortgage News Daily, but was up to 4.15 percent two weeks ago. That’s at, or near, the lowest level since Freddie Mac started recording rates in 1972. Mortgage lenders could have raised rates either because they were trying to slow down the flow of customers or they were trying to make a loan that would actually be worth their while.

Fears over the coronavirus have already indirectly lowered interest rates, and the Federal Reserve cut a key benchmark rate this week. Both could continue to push prices lower. However, there is little consensus about what this could mean for the already hot housing market in San Diego.

The San Diego metropolitan area saw a 360 percent annual increase in refinance applications in the week ending March 5. The Federal Reserve has said it plans to buy unlimited amounts of mortgage bonds, which is expected to calm some investor fears. 

Picking the best time to buy is never easy. However, some buyers might see this as an opportunity, and a lot of potential buyers are increasingly ready to pull the trigger. Now, many are using the low mortgage interest rates as the reason to buy.

Purchase applications were actually down by 3 percent weekly but were up 10 percent annually.