Fed's short-term rate cuts fuel stock market rally

Actions not expected to help long-term mortgage rates

The Federal Reserve today cut 75 basis points from two key short-term interest rates — a move that in less turbulent times would have been viewed as a drastic measure, but which fell short of some investors’ expectations for a full 1 percent cut.

The Fed’s actions fueled a stock market rally, but aren’t expected to have an impact on long-term interest rates like mortgages until investors who fund loans return to the secondary market where they are bought and sold.