Yesterday's emergency Fed rate cut is garnering all sorts of attention in terms of what it is likely to do to mortgage financing. While mortgage rates did come down after the cut, it is important to note that mortgage rates are not often influenced to a great degree by the Fed.
The interest rates that are influenced, though, include adjustable rate mortgages 
and home equity lines of credit. Inman News reports that these types of second mortgage financing are likely to see an impact from yesterday's Fed rate cut:
For those with adjustable-rate mortgages (ARMs) indexed to the prime rate or home-equity lines of credit (HELOC) loans, "this shows up right away in terms of lower interest rates," as banks follow suit and lower the prime rate to 6.5 percent. For ARM borrowers facing interest-rate resets, Nothaft said, that translates into a smaller increase in payments, and "maybe even a decline."
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