Remember Quantitative Easing (QE) and Quantitative Tightening (QT)? Here’s a quick refresher.

QE involves the central bank purchasing government bonds and mortgage-backed securities (MBS). This injects stimulus into the economy by lowering long-term interest rates and boosting bank reserves.

QT is the exact opposite, a gradual reduction of the balance sheet by halting security reinvestments. Think of it as the economy’s braking system: it tightens reserves and generally pushes rates higher.

Historically, significant rate drops happen during QE cycles

Think 2008, 2014, and the 2020-2022 COVID era, when trillions were added to the balance sheet. After four years of aggressive QT, we have to wonder: is the tide finally shifting?

This may be the start of lower mortgage rates. let’s get you pre-qualified now.

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