Last month, I wrote about the decline in mortgage rates during the latter half of 2006, noting that real estate might have fared worse if not for the tailwind provided by falling rates. 
As it happens, rates began to rise soon after that posting and they haven’t stopped since. The last thing the housing market needs right now is an extended rise in mortgage rates. Of course, whether they continue to increase remains to be seen.
In keeping with the 2006 vs. 2007 comparison theme, I will note that rates are slightly higher now than they were a year ago. They are, however, still noticably down from their mid-2006 peaks.