[bt_dooftlook]

Your comment only makes sense if you assume that the Fed will attempto reduce interest rates in the face of a slowdown in the mortgage market. Otherwise, what is the connection between mortgages and interest rates?

[Shanty Shaker]

Interest rates on mortgages actually have many factors that support the relatively "high" rates you are currently seeing. The amount of money to be loaned via mortgages is finite therefore the laws of supply and demand are a significant factor. A collapse in new loans would lower demand and "could" draw even lower rates.