No shit, check it out. Here's the blurb from IMDB:
Harry Potter and the Order of the Phoenix author J.K. Rowling has shocked fans of the boy-wizard series by stating that character Albus Dumbledore as gay. The writer revealed the truth of the Hogwarts school headmaster's sexuality at New York's Carnegie Hall on Friday as part of her American book tour. When asked by an audience member if Dumbledore had found "true love," she replied, "Dumbledore is gay," adding he was in love with his rival Gellert Grindelwald, who he once beat in a battle between good and bad wizards long ago. She says, "Falling in love can blind us to an extent. (Dumbledore was) horribly, terribly let down."
For a longer story, here is the article from the Guardian. I just love her more and more all the time.
Edit: Here's another good article, from AP.