The 30-year fixed mortgage rate has bounced back to 5%, and appears to be heading higher — at least for now. For the most part, it appears as though mortgage interest rates will be settling into the range around 5% for quite some time to come. However, it could be that mortgage interest rates move lower in the future, depending on what happens to 10-year Treasury yields. Subprime Blogger reports on the effect Treasury yields could have on mortgage interest rates:

The 10 year treasury rate yield continues its down trend which is very good news for lower mortgage rates.  The 50 day moving average is now trending down which means that it will serve as overhead resistance any time there is a bounce or a short term rally.  The 10 year yield is actually rather close to its 50 dma currently.  It will be interesting to see if there is a move lower after the yield hits the average.  If the move is down, look for mortgage rates to test all time lows.

In the end, though, mortgage rates are rather low, irregardless of whether you happen to lock in your rate at a low. If you can afford a home, it is a great time to buy. And if you want to refinance, it is a great time to get a lower mortgage rate.