Mortgage rates are heading higher this week as signs that the housing market and the economy might be picking up — that they could pick up soon. Mortgage rates forecasts assume that as the economy begins to improve and the housing market stabilizes, mortgage interest rates will start heading higher. Even though housing prices have yet to bottom, there are still signs that the housing market might be improving, mostly in the form of increased sales and pending sales.

However, there have been some small setbacks recently. Jobs data today is not as improved as hoped, and Ben Bernanke offered a cautious opinion on the economy this morning in his remarks before Congress. This means that there is a chance that mortgage rates could drop slightly. However, over the long term, expect mortgage rates to rise. For now, though, they are still rather low in spite of rising trends.

If you can afford it, and are in a position to buy a home, now is a good time to do it.