The Fed concluded its most recent two-day FOMC meetings yesterday and post-conference comments indicated a December rate move might be in store after all after describing the economy moving at a “moderate” pace. The Fed Low Financing Costs Funds rate has held steady at near zero for seven straight years. The news there would be no immediate rate increase boosted stocks yesterday and the Dow closed a bit closer to 18,000 at 17,773 while the benchmark mortgage bond closed at 101.11, down -13/32, causing interest rates for real estate investors to rise slightly.

Today we were witness to the initial reading of Q3 GDP and as the economy began to slow down going into July and August, a less robust number was expected than the 3.9% annual growth reported for Q2 2015. Last year’s Q3 output registered the highest of 2014 with a 5.00% annualized growth. Investors had expected 1.6% for Q3 and the actual number was slightly less.

Freddie Mac’s weekly mortgage rate survey reported the 30 year fixed rate for real estate investors was right around 4.00% and the 15 year fixed rate at 3.25% however after the Fed comments yesterday, it appears that the low interest rates are now in our rear view mirror. With more and more anticipation of a Fed hike in December, mortgage backed securities holders look to be selling their holdings, causing yields to rise. The housing market appears to be firming up according to the Fed and with rates still in a relatively low range, more buyers are entering the market with confidence.

Real estate investors who prefer multi-unit properties and condominium projects got some good news from the Federal Housing Administration regarding condo approvals. In essence, FHA recognizes the FHA condo approval process, that which is needed for individuals to buy and finance a condo with an FHA loan, is currently too onerous and keeps many from using the program that is so popular with cash-strapped first time homebuyers. Don’t expect anything until early next year, if it happens at all, but the FHA has stated they’re contemplating some changes.