Bill Gross is the high profile bond fund manager at Pimco. He writes a monthly letter that is posted to the Pimco site. If you don't like to get your hands dirty don't bother. But if you are interested in "financial" stuff do yourself a favor and read them, they contain a tremendous amount of information.

Here's an exerpt from his most recent:

If we had to forecast (and we do), we believe a range of 3 - 4�% for 10-year nominal Treasuries will prevail during most of our secular timeframe and that yields on Euroland bonds will be slightly lower due to their structural unemployment problems, disinflationary incorporation of new Central and Eastern European countries into their existing family of nations, and more growth-inhibiting demographics.

Why do I point this out? Most mortgages are priced off of the 10 yr Treasury. His forecast would indicate the current levels in the mortgage market can be expected to stick around awhile.

Of course, like all crystal balls his is just as susceptible to being cracked.