Why Did Mortgage Rates Go Up After the Fed Cut?

Why didn’t mortgage rates fall after the Federal Reserve rate cut?

Even though the Fed recently cut rates, mortgage rates didn’t move the way many people expected. Instead of dropping, they actually ticked upward — and that has a lot of Walla Walla Valley buyers and sellers scratching their heads.

Here’s the short answer: The Federal Reserve controls short-term rates (like credit cards, car loans, and bank-to-bank lending), while mortgage rates follow long-term bonds like the 10-year Treasury. Those are driven by bigger economic forces such as inflation, jobs data, and investor confidence.

How Mortgage Rates Really Work

When the Fed makes a cut, it doesn’t directly lower your mortgage rate. Instead, investors look at what the Fed’s move signals about the economy. If markets expect inflation or strong job growth, bond yields rise — and mortgage rates follow.

That’s exactly what happened recently: rates had already dropped in anticipation of the Fed’s decision, and when the news finally came out, the bond market moved in the opposite direction.

What This Means for the Walla Walla Real Estate Market

If you’re following headlines, it’s easy to assume rates will always move in sync with the Fed. But in reality, mortgage rates move independently — and they can shift quickly.

For the Walla Walla real estate market, this means two things:

• Buyers: Don’t wait around trying to time the “perfect” rate. By the time news breaks, the market has usually adjusted.

• Sellers: Higher rates don’t necessarily stall activity. In fact, demand in Walla Walla continues to be driven by lifestyle changes, job moves, and long-term investment strategies.

The Bigger Picture: 10-Year Equity

Looking at history, homeowners who buy and hold for 10 years almost always see equity growth — regardless of rate fluctuations along the way. The key isn’t finding the lowest possible rate, but choosing the right time for your life and your financial goals.

As Walla Walla Realtors, our job isn’t just helping you buy or sell a home. It’s helping you make a decision that will stand the test of time.

Let’s Talk About Your Next Move

The headlines can be confusing, but you don’t have to navigate them alone. If you’re curious about where today’s Walla Walla mortgage rates leave you — whether buying, selling, or just planning — reach out to Phillip & Jenna Provost of The Provost Real Estate Team, your trusted local experts in the Walla Walla real estate market.

📲 Let’s connect today and talk about your options.

Phillip Provost

(509)200-2215