In an emergency move, the Federal Reserve cut its benchmark rate by half a percent, the biggest cut since 2008. That rate cut could mean lower rates for millions of new homeowners and those looking to refinance their homes.
The Fed lowered the rate because of concerns over the coronavirus and its possible impacts on the economy.
“The fundamentals of the U.S. economy remain strong,” read a March 3rd statement from the Federal Reserve. “However, the coronavirus poses evolving risks to economic activity.”
The spread of the virus has had a looming effect on the stock market. On February 28th, the Dow Jones Industrial Average saw a record-breaking point drop, which was shortly followed by a record-breaking rally.
"We all have friends in stocks that have been very unhappy the last couple of weeks," said loan officer Mark Goldman for C2 Financial. "Because of this we've seen interest rates come way, way down."
Those lower rates can help homeowners and people looking to buy a home. So what does this mean for the average San Diego homeowner?
"If you could save $200 a month and recover your closing costs within two years, it's a pretty good idea to take a look at a refinance," said Goldman.
He recommends anyone with an interest rate above 3.8 percent look into possibly refinancing.
"We're seeing fixed 30-year interest rates under 3 percent right now," said Goldman. "I don't remember ever doing a loan under 3 percent in the last 30 years I've been doing this business."
Goldman says the low loans could help people refinance and pay off their homes sooner, but is not sure how else it will affect the economy.
"It's nearly impossible to predict what is going to happen to interest rates from day to day," said Goldman. "But right now might be a great time to refinance your home."