The central bank on Tuesday said it had reduced the Federal Funds Rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent.

Wow.. they are playing every card they can to try and get a hold of our economy. 

Borrowers should remember, this reduction to the Fed Funds Rate does not directly relate to an interest rate reduction for a typical mortgage.  It will immediately impact your credit card interest rate and Equity Lines of Credit loans though.

With that said, we have seen a .25% drop in rate since the announcement and as the market closes out we may see more savings.