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How will a debt downgrade affect mortgage rates?

Given the inability of Congress and the Senate to come to an agreement over the budget crisis, most experts believe that the nation's credit rating will be downgraded a notch.

Although it is impossible to figure how much treasury yields, and thus mortgage rates, which typically track the 10 year treasury yield, will rise as a result,  it is likely that rates could spike as much as 1/2% to 1% in order to compensate investors for the added risk.  Once the debt crisis is resolved rates will fall back to the range they are in now unless any  resolution ignores the long term need to reduce the ever growing federal deficit.From NY;

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