The word “observed” in this verse reminded me of another verse, Hebrews 11:1. So let me share something I gleaned from the web on this site:
How can anyone believe Hebrews 11:1?
Now faith is the substance of things hoped for, the evidence of things not seen. (KJV)
“Faith” is neither “substance” nor “evidence,” as it is rendered in this passage. Faith is intangible, the very opposite of substance. It cannot become “substance” without being transmuted into sight, and is no longer faith. Later versions changed “substance” to “confidence,” yet this is not at all suitable for some of the other contexts where the word occurs. The Concordant Version renders it uniformly:
Now faith is an assumption of what is being expected, a conviction concerning matters which are not being observed. (CLNT)
The word “assumption” fits every passage in which this word occurs, and opens up a marvelous vista of truth. Faith assumes that to be truth which it expects to become fact in the future.