Mortgage rates may move sooner due to the Federal Reserve’s balance sheet management, not interest rate cuts. Kevin Warsh criticizes the Fed’s large balance sheet, advocating for a smaller one to shape borrowing costs. Quantitative tightening may push rates higher, while quantitative easing expands the money supply and balance sheet.

Recent U.S. dollar weakness may not impact central bank policies, according to Federal Reserve Governor Stephen Miran. Wall Street analyst Stephen Guilfoyle disagrees, saying a weaker dollar could lead to higher consumer prices. Mortgage rates currently hover around 6%, far from pandemic lows but below previous peaks.

Housing experts predict that mortgage rates will depend on how quickly markets absorb any increase in Treasury and MBS supply. This story originally appeared on TheStreet, discussing how the Federal Reserve’s balance sheet may influence mortgage rates sooner than expected.

Read more at Yahoo Finance: Why the Fed’s balance sheet could move mortgage rates sooner