Nice turnaround. The Dow finished up more than 400 points for the first time in three years and combined with yesterday’s rebound, it’s the best two-day show for the year so far. The DJIA closed at 17778.25, up 421.28 while the S&P 500 rose by 48.34 to finish at 2061.23. The NASDAQ performedreal estate investing dow up 400 remarkably well with a triple digit gain as the Tech sector rebounded.

The NASDAQ composite closed at 4748.40. The benchmark 30 year FNMA 3.5 coupon closed lower by -6/32 but given the equity markets today and yesterday, mortgage rates are still holding firm and still below 4.00% for the conforming product.

The final two-day FOMC meetings for the year finished yesterday and investors paid close attention to the post-meeting comments. The Federal Reserve changed their policy wording yesterday from “accommodative” to “patient” which allowed investors to breathe a sigh of relief. At least for the short term. With the number of positive economic reports over the past several weeks, none more so perhaps than the 321,000 new non-farm payroll jobs created for the month of November. December’s unemployment report will be released on Friday, December 9, 2015. Similar numbers will likely be a bad sign for equities, as a stronger economy can be interpreted as a Fed rate increase indicating the Fed will likely be losing their patience sooner rather than later.

This see-saw battle in equities isn’t for the faint of heart even though the VIX fell almost 14 percent to 16.75. It’s just the Dow and S&P 500 both were on a tear toward the end of the year yet got panicky when oil drifted lower and both Russia and Japan announced their economies were taking a hit. If January provides similar good news on the economic front, real estate investors can expect to see long term borrowing costs rise above the 4.00% mark.