Is the high gas prices bad for mortgage rates?

Possibly. It depends on the reasons for the higher gas prices.Higher gas prices is an indicator of possible inflation, and inflation requires higher interest rates to attract investor capital.However, if there is unrest in the Middle east (as is usually the case), then that sends investor capital searching for safety. That usually means stock prices go down, and money moves to long term bonds.When bond prices go up due to increased demand, then rates go down.So - you can have conflicting forces at work.This is why economists can usually say they were right - because they make both arguments when convenient. ;-)