Fed ponders risks of deep economic slowdown

Mortgage market commentary

All long-term rates this week rose a quarter-point from the end-of-September lows: the 10-year T-note’s jump from 4.54 percent to 4.81 percent has taken 30-year mortgage rates to 6.375 percent.

Incoming data are too healthy to support a further decline in rates, or even a return to September lows. The economy has decelerated, but bonds need the prospect of a deeper slowdown underway — slow but steady won’t get it done.