While this rate cut will have little impact on mortgage rates, it may benefit those borrowers with adjustable-rate mortgages. Adjustable-rate mortgages are tied to indexes such as the LIBOR or Cost of Funds.
Home equity lines of credit that are tied to the prime rate also will see interest rates decrease.
The Federal Reserve also hopes to expand its program to buy mortgage-backed securities from Fannie Mae and Freddie Mac, which could drive mortgage rates lower.
