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The news of the Federal rate being lowered rocked the media, and the trading floor. Sometimes, the lowering of the Federal rate gives mortgage lenders a head start on lowering mortgage interest rates, but that isn't a guarantee.  The move was said to be an effort to help relieve mortgage holders who have adjustable rate loans that adjust according to the prime rate.  So, for instance if you have a mortgage rate of 5.75% on an adjustable rate line of credit, it will be lowered to 5.25% next month. 

The real difference can be noted by looking at your credit card interest rates.  Credit card interest rates are  tied directly to the Federal reserve rate.  So, your credit card may offer you 10% plus the Federal reserve rate, to charge you a combined interest rate of 14.25% on your expenditures.