Fed pause likely next week

Mortgage market commentary

Long term rates stabilized this week, near 4.8 percent for the 10-year T-note holding low-fee fixed-rate mortgages at 6.375 percent.

Stability is likely to persist for another week. The Fed meets next Tuesday, but two weeks before election day will keep the lowest-possible profile, and there is no significant economic data due until the first days of November.

Last week and this, rates have been a bit higher than at the end of September on the theory that the economy is in pretty good shape, the Fed focused on inflation worry and not thinking at all about a rate reduction.