I've been talking about rising yields on T-bonds for most of the year, and saying that this was good news. It's good because it means that a) the market is losing its fear of deflation and b) the market is becoming more optimistic about the prospects for growth. Eventually, rising yields will be a sign of worrisome inflation expectations, but not yet. We're probably headed in that direction, as suggested by the steeper yield curve which is being driven solely by rising long-term yields and stable short-term yields. But inflation expectations remain "anchored" within the recent historical range of 2-3%.
Rising yields are a negative for the owners of Treasury bonds, but not for the owners of corporate bonds, since the spreads on the latter are contracting at least as fast as the yields on Treasuries are rising. So this chart is not a bad sign for corporate America. It's a warning sign for Uncle Sam and Obama, however, since it means the government's borrowing costs are rising. That may eventually be a good thing, since debt worries (which are absolutely genuine now) could help derail Obama's plans for further growth in government (e.g., cap and trade and universal healthcare).
UPDATE: I should add that, although 10-yr Treasury yields are a major determinant of mortgage rates, mortgage rates have not risen by much from their lows this year. Certainly not enough to create a significant problem for the housing market. Rates are still pretty close to all-time lows. This could change going forward, to be sure, but to the extent Treasury yields rise further it will be because the economy—and by inference the housing market—is doing much better. A stronger economy would almost certainly be able to support 6% fixed conforming mortgage rates, should it come to that. Then there is the other factor too: rising yields help boost demand for housing, since fence-sitters will be encouraged to act rather than wait.