Why the Fed’s balance sheet could move mortgage rates sooner

Mortgage rates could move sooner than many homebuyers expect but not because of interest-rate cuts — rather because of how the Federal Reserve manages itsbalance sheet. Federal Reserve Governor Stephen Miran said Feb. 10 that the central bank’s $6.6 trillion balance sheet needs to be smaller to reduce its footprint in financial markets and give monetary policymakers options in the event of a future economic crisis. It could also result in lower mortgage rates for the stagnated U.S. housing market. The R ...