Merrill Lynch Ups Bear Stearns,Bank Of New York To Buy

Merrill Lynch upgraded Bear Stearns Cos. (BSC) and Bank of New York Co. (BK) to buy from neutral, citing valuation.

Merrill Lynch said Bear Stearns is one of the least expensive stocks in its peer group, and "has consistently shown far less quarter-to-quarter revenue volatility than its peer group, despite more trading-oriented mix. This is clearly worth something, perhaps quite a lot," the brokerage firm added.

Merrill Lynch said Bank of New York trades at a 17% discount to its peer group, buts its earnings per share growth prospects only "slightly trail those of peers."

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.