Unlock the Key Information to Luxury Living: Your Guide to Orange County Real Estate in Southern California

Welcome to the My Orange County Real Estate Insider

Greetings! I'm Briana Harper, proud member of the Hammond Moreno Associates Team at Surterre Properties, located in the stunning Newport Beach, CA. Join me as we get into the latest updates and insights shaping the real estate market.

New Home Sales Surge

In March, new home sales skyrocketed to their highest levels in six months, showcasing a surge in demand for housing. This spike underscores the pent-up demand in the market, as new home sales are recorded at the signing of a contract. However, with mortgage rates hitting the highest levels of 2024, it remains to be seen if this robust buying demand will persist in the coming months.

Demand for U.S. Short-Term Debt

Last Tuesday, the Treasury Department conducted a record sale of $69 billion worth of two-year notes. Encouragingly, the buying demand remained strong, keeping the yield on the 2-year Note below 5%. Why is this significant? If short-term rates stay below 5%, it could temper the rise of long-term rates, including mortgages.

The Strength of the U.S. Dollar

Thanks to our resilient economy and the Federal Reserve's stance on rate cuts, the U.S. dollar has strengthened considerably against other currencies. This strength brings benefits, such as downward pressure on oil prices, which are denominated in dollars. Lower oil prices alleviate inflationary concerns, benefiting bonds and interest rates. Additionally, a strong dollar makes imports more affordable, aiding in controlling inflation.

10-Year Note Trends

The 10-year Note has oscillated between 4.60% and 4.70%. For long-term interest rates, like mortgages, to see improvement, we need the 10-year Note to dip below 4.60%. Conversely, surpassing 4.70% could trigger another spike in interest rates. The coming week's Federal Reserve meeting and Treasury Refunding announcement will likely dictate the trajectory of interest rates.

Looking Ahead to Fed Week

Next week is Fed week! On Wednesday, the Federal Reserve will unveil its monetary policy decision. While a rate cut is unlikely, attention will be on their forward guidance regarding potential rate adjustments and balance sheet reduction. Additionally, the Treasury Department will disclose its refunding requirements. Any adjustments to previous readings could impact the bond market's sentiment.

In Conclusion

The real estate market is a dynamic ecosystem influenced by various economic indicators and policy decisions. As we navigate through these developments, it's essential to stay informed and adaptable. Whether you're a buyer, seller, or investor, understanding these market dynamics can empower you to make informed decisions. Stay tuned for more updates and insights on the Orange County real estate landscape!

Thanks for joining me on this journey. Until next time, happy investing!

Briana Harper

Hammond Moreno Associates

Surterre Properties