"Long-term rates, such as those for mortgages, don't respond directly to the Fed's short-term rate moves. Sometimes, mortgage rates move in the opposite direction when the Fed reduces the federal funds rate. But more often than not, mortgage rates eventually follow the Fed's lead. That might be one of the motivations of the central bank, (Richard DeKaser, chief economist for National City Corp) says -- "to help the housing market by lowering the refinance rate on many resetting mortgages. That makes it easier for people confronting resets, which we know are rampant right now, to achieve more affordable rates."
If you have a Home Equity Line of Credit, that will be favorably affected. But keep on eye on mortgage rates, because taking a cue from last week's volatility where there was an almost-unheard-of-three-quarters-of-a-percent movement in one day, you could definitely save money.
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