For the record. Fed ending QT is not helping the Housing Market. Yes, the Fed’s decision to halt MBS reinvestments and reduce its footprint in the mortgage market directly implies that policy rate cuts will be the primary, and perhaps only, lever to meaningfully lower mortgage rates and revive real estate activity. To be clear the Fed does not control the long end of the curve. And the 10 year is what mortgages are priced off. So no help from the Fed on housing. But without the Fed as a large, buyer of MBS, mortgage rate spreads are likely to stay historically elevated compared to Treasuries, making it harder for policy easing to fully transmit to the housing sector. Therefore, to bring mortgage rates down to levels that could catalyze a housing rebound, the Fed may need to cut the policy rate further than consensus expects, compensating for the lost MBS support with more aggressive interest rate reductions. This means that, in the absence of renewed central bank intervention in the MBS market, a “standard” rate cut cycle may not be sufficient to materially ease housing finance; deeper and more sustained cuts might be necessary to close the gap and restore affordability in the real estate market. Like it or not the Powell Fed is going out of its way not to help the Housing Sector out.