The average 30 year fixed rate mortgage fell to 6.67% from 6.69% last week. A year ago the 30 year yield was at 6.58%.Mortgage rates aren't set directly by the Fed; they are driven primarily by mortgage-backed securities, which tend to move with longer-term Treasury yields, particularly the 10-year. The 10 year yield last Thurday was at 4.676%. The current 10 year is at 4.643% but is down from a high close from Monday near 4.71%. With yesterday's CPI followed by today's softer-than-expected PPI, inflation pressure looks somewhat less threatening. Treasury yields have moved lower. If that bond-market rally holds, it creates an opportunity for 30-year mortgage rates to move lower from the current 6.67% level.For perspective, rates briefly fell below 6% earlier this year—Freddie Mac noted a 5.98% low during Q1—before moving back above 6%. The low 10 year yield for the year reached 3.93%. With the current 10 year yield at 4.64%, that is up 71 basis points. The comparable 30 year mortgage is up 69 basis points. So I'd characterize the current situation as: mortgage rates are still high historically. The next question is whether the bond rally has enough staying power to push mortgage rates toward 6.5% and eventually closer to 6%.The 15-year fixed-rate mortgage averaged 5.96%, down from last week when it averaged 6.01%. A year ago at this time, the 15-year FRM averaged 5.71%. This article was written by Greg Michalowski at investinglive.com.