Publicly traded corporations provide their corporate earnings once each quarter and prior to that time issue statements indicating how they expect perform over the next 90 days, providing investor guidance. Many who have worked for a publicly traded company know that while there certainly is a longfed to ease and raise rates term vision, it’s the quarter by quarter results that managers focus their efforts on.

So it may be the very same play with regard to future Fed action and interest rates as it plays out over the long term. Perhaps no one is thinking about one or two years down the road. What might be that far down the road that will affect real estate investors?

The talk on the street is mostly related to what the Fed will or won’t do. The Fed’s announcement last December that the $85 billion per month taper would be reduced by $10 billion per month was relatively warmly received and there are many who think the Fed will reduce the taper by a similar amount at each Fed meeting, which occur once every six weeks or so.

That said, it would mean the current Fed stimulus QEIII program will end in December of 2014, as the program gradually winds down. The Fed can also raise interest rates should any signs of inflation pop up but most think inflation is something that simply can’t happen in the current environment. But what about the environment say one year from now? Two?

If the GDP continues to report anything above a 3.00 percent growth rate from quarter to quarter while the Fed is pulling the plug on QEIII, does that mean rates in 2015 will take a jump? If the GDP numbers are consistently strong, approaching or even surpassing the 4.00 percent mark, the Fed will likely raise interest rates rather than standing pat.

For real estate and investors alike, it looks as if 2014 might be the best year for real estate for quite some time. That’s a long way off to make predictions, but we can certainly speculate, can’t we?