Finance, Forex and Investments

What is the effect of the current subprime market on long term interest rates?

What I mainly want to know is how the subprime housing market and the credit market are affecting the Long-Term Interest Rates. I know that Short - Term interest rates are lowered.

Public Comments

1. Many mortgages are ties to either the 10 year Treasury or LIBOR (London Interbank Offered Rate) http://en.wikipedia.org/wiki/LIBOR Lenders Consider Freezing Rates on Subprime Loans http://www.npr.org/templates/story/story.php?storyId=16783072 Freezing introductory rates could have long-term effects http://www.newsday.com/news/local/ny-bzbush1202,0,770151.story Subprime mortgage crisis http://en.wikipedia.org/wiki/Subprime_mortgage_crisis Below are some links for long and short term rates.