If you’ve been watching the news, you might’ve seen it: the Federal Reserve just cut rates again.
So why are mortgage rates still high?
That question is coming up a lot this week, and for good reason. The headlines sound promising, but Spokane buyers checking in with lenders are discovering their interest rates haven’t really moved.
Let’s clear up why this happens, why it’s confusing, and what it means if you’re thinking about buying or selling.
Why People Are Confused
When the Fed makes a move, it’s easy to assume mortgage rates follow right behind. But that’s not how it works.
“The Fed Funds Rate (FFR) doesn’t dictate mortgage rates.”
— Mortgage News Daily, Sept 18, 2025
Here’s the simplified version:
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The Fed Funds Rate affects short-term lending like credit cards and HELOCs (not mortgage rates)
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Mortgage rates move daily, based on the bond market and real-time economic data
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By the time the Fed made its announcement, mortgage rates had already adjusted days earlier
So even though the Fed cut rates, mortgage lenders didn’t follow, because the market had already “baked in” that news.
What Mortgage Rates Are Actually Doing
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30-year fixed mortgage rates are hovering around 6.3% (Mortgage News Daily)
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That’s a modest dip from earlier this summer, but not a dramatic shift
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Some lenders have even ticked rates slightly up again in the last few days
So while the buzz is high, the actual movement is minor.
What’s Happening in the Spokane Market
While national headlines focus on rates, Spokane’s housing market is moving at its own thoughtful pace:
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Spokane County home prices are stable
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Spokane city prices have dipped about 2.6% year-over-year
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Homes are taking a bit longer to sell, giving buyers more space to think and negotiate
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Inventory is still low, so sellers who price and prep well can still stand out
What to Know Right Now
If you’re buying:
Don’t chase the perfect rate, focus on a monthly payment that feels comfortable and sustainable. If the right home lines up with the right numbers, that’s your signal.
If you’re selling:
Buyers are still in the market, but they’re taking their time. Homes that are well-prepared and priced thoughtfully are selling, it just takes a bit more strategy and patience.
If you’ve been wondering whether now’s the right time to buy or sell, we’re always happy to talk through what the numbers really mean and what’s possible in your situation. Looking forward to the opportunity of helping you with your move!
“Chelsea is a wonderful person to work with. She is very knowledgeable about the industry. Chelsea came up with a great strategy for selling our home. It sold quickly and for above asking price. If we need to buy or sell another home we will definitely give her a call!"
— Paul M.