Mortgage Outlook in 2023: Being Optimistic during Market Fluctuations

Paul Domingue, Assistant Vice President Mortgage – Home Bank 

Thanks to member George Messina for catering this week’s networking event at Rooftop on Basin.

Guest speaker Paul Domingue, Assistant Vice President Mortgage at Home Bank, reported on current and projected interest rates through end of 2023.  The biggest obstacle for new home owners is the impact of rising insurance rates affecting the consumer’s escrow accounts. Domingue expects that interest rates will increase a quarter to one half of a percent this year and is beginning to see buy downs on residential sales. He is optimistic that interest rates will go down and stabilize to around 5.5% sometime in 2024.
Chris Breaux, addressed the commercial side explaining that banks were flush with cash inventory at the beginning of 2022 and are now having to borrow money to meet demand. He added that the Feds started raising rates prior to COVID. The commercial side has slowed, particularly investment real estate attributed to  the economy. Clients are completing projects and selling both residential and commercial properties but now starting new ones. Insurance costs and operating expenses in general, along with the increase in interest rates, will affect the property’s net operating income (NOI). At some point the market will adjust and sellers will reset their expectations and buyers will react to the value and not pay the prices. Year over Year 2022 for commercial property has been a good year with a lot of money coming in.

Membership

If you have a prospect, please have them connect with Jacquie Bonano, membership chair at membership@gnoea.com.

Jesse Hoppes reminded all that the classifications list is being updated on the website.

Thank You & Announcements

Jesse Hoppes, President, presented George Messina, Messina’s Catering, with a certificate of appreciation for his participation on the board.

Jesse Hoppes, reminded all that the GNOEA PO Box is officially closed. Change mailing address to 1908 Clearview Pkwy, Suite 203, Metairie, LA 70001

Kenny Knobloch, Help AC/Heating thanked John Lagarde, Classic Cupboards, for his help with renovations.

Paul Cosma, Uptown Auto Specialist, thanked Kenny Knobloch, Help AC/Heating, for servicing his system.

Marcus Azzarello, Franklynn Pest Controls Co., thanked Paul Cosma for car repairs.

Bill Dalton, Firefly Marketing, thanked Jesse Hoppes, Leaaf Environmental for inviting GNOEA members to his Customer Appreciation event.

Jesse Hoppes, Leaaf Environmental announced that he will participate in Hogs for the Cause and encouraged members to donate to the cause. Paul Cosma will also participate in the event with team name Swine Intervention. Funds collected go directly to the Hogs for the Cause organization.

Angela Verdin, Complete Logistical Services, thanked Jacquie Bonano, JB Communications for her help with their digital marketing.

Upcoming Meeting Schedule

  • February 21st – Mardi Gras
  • February 28th – Sharon Courtney, VP Government Affairs – Tulane’s Downtown Development
  • March 7th – No Meeting
  • March 14th – Avondale Site Visit – Avondale Global Gateway Tour – Must RSVP by March 7th so that names can be provided to the organizer.
  • March 21st – LABI – Jim Patterson – Board meeting to follow.
  • March 28th – Tax Talk with Philip Rebowe, CPA P&N
  • April 11th – TBA
  • April 18th – St. Bernard Economic Development Foundation, Meaghan McCormack CEO – Board Meeting follows
  • May 2nd – No Meeting
  • May 4th – Crawfish Boil at Southern Yacht Club
  • May 9th – No Meeting
  • May 16th – TBA – Board meeting follows
  • May 23rd – Louisiana State Treasurer John Schroder
  • May 30th – No Meeting
  • June 6th – TBA
  • June 13th – No Meeting
  • June 20th – No Meeting
  • June 27th – Update on Jefferson Parish – Parish President Cynthia Lee Sheng – Board meeting follows

Check website for updates and bulletins that include upcoming events. Meeting events are on the calendar.