The yield on the 10 year note has steadily moved down this week as is trading under 5.1% this morning. This does not have any direct effect on mortgage interest rates, but it typically has acted as a good indicator. Hopefully, we will see lenders adjust their mortgage lending rates down on similar term products. The Securities and Exchange Commission confirmed it has launched several investigations into securities backed by subprime mortgage loans, and PIMCO Chief Investment Officer, Bill Gross, insists the turmoil in the funds managed by Bear Stearns is not an isolated event. This should be interesting, but I am sure that nothing big will come out of it in the end. Martha Stewart went to jail for making $200,000, sorry for purging herself…I am confident that nobody involved in any wrongdoing at these firms will do a day behind bars.

tags: bear stearns, loan, mortgage, sub-prime, subprime