Before we get too much further, let’s first remember that the initial interest rate hike by the Fed has been largely priced into rates we’re now seeing. The next FOMC meetings are in late December and although the talk of the Fed raisingGood Times Starting to Roll?the Fed Funds rate for the first time in years is becoming increasingly more common it wasn’t but a few weeks ago there were more doubters than believers. Mortgage rates for real estate investors actually fell for several weeks from levels not seen since late July, mostly because the fear of a Fed rate increase looked more and more like 2016 and not this year.

With the advent of the surprising jobs numbers for October however and other signs of an economy beginning to get legs, rates are now at levels not seen since earlier this year and are just now near where they were one year ago. This past summer the expectations of rates being raised were slim but that’s all now changed. Beyond the number of new jobs in October, wage gains finally made a respectable push and with higher wages typically waves in inflation, something the Fed has wanted to see. Well, we might very well get to the 2.00% annualized rate in the next several weeks.

Consumer sentiment and rose a bit in October with consumers having a more positive outlook on the economy. With a good, positive economic mind it’s a lot easier to part with those higher wages to buy things which can push up prices. The Chicago Purchasing Manager’s Index also came in high. Actually, much higher than expected and the highest level in 10 months. Purchase orders for goods is a sign businesses are also confident in an economy that is starting to take some actual shape. We’ve seen fits and starts before with one poor piece of economic data wiping out any benefit of good numbers but now the good news is more consistent. Prediction? Rate hike in December and the next in March of next year.