So far the only outcome from cutting the rate that homeowners have seen is inflation and higher mortgage rates. The price of oil and other imported goods will make things more expensive pushing more homeowners into foreclosure. In addition, long term interest rates go up when there is expectation of inflation so mortgage rates went up after the cut and may continue to do so if the dollar keeps loosing value. So yes, Bernake may have helped the credit crunch with the cut but home prices are now even more doomed. Some ARM resets may be lower now but 50 basis points is small compared to adjustment from teaser rate to full rate.
