Discount rate doesn't mean discounted consumer loan rates

I recently had a buyer ask why their projected apr wasn't being adjusted down by their lender on a pre approval letter. They had heard about the "Fed cutting the rate" and assumed that meant that loans were going to immediately have lower rates as well.

The rate the fed cut, was the "discount rate" the rate that banks are charged by the federal government. The one to keep an eye on that has direct impact on consumer loans is the Federal Funds Rate. What has recently happened will create a bit more stability in the economy as a whole and may make loans more available, because banks will have more liquid assets to work with. The fed may actually lower the federal funds rate when they meet again in September, but they have held steady now for the last 9 sessions. If they do however decided to drop it, look for a quarter to half percent drop.