The design of wireless communication schemes tailored to real-time traffic requires an analysis framework that goes beyond the traditional criterion of data throughput. This work considers an approach that relates physical system parameters to the queueing performance of wireless links. The potential benefits of multi-rate techniques such as hybrid-ARQ are assessed in the context of delay-sensitive traffic using large deviations. A continuous-time Markov channel model is employed to partition the instantaneous data-rate received at the destination into a finite number of states, each representing a mode of operation of the hybrid-ARQ scheme. The proposed methodology accounts for the correlation of the wireless channel across time, which is computed in terms of level-crossing rates. The tail asymptote governing buffer overflow probabilities at the transmitter is then used to provide a measure of overall performance. This approach leads to a characterization of the effective capacity of the system which, in turn, is applied to quantify the performance advantages of hybrid-ARQ over traditional schemes.