dbyrne is right that almost no one is doing this. It's more conventional to use JAX-RS to dump information to JSON or XML. Then you fancy up the web browser with an RIA framework (e.g. Ext JS), which handles manipulating the DOM and injecting data as its fetched in JSON/XML form. This approach is powerful. You can write multiple, possibly non-browser clients for the service, all parsing the same JSON/XML. You can write "one-page" webapps, where all information exchange happens through AJAX after the initial pageload. I urge you to investigate and consider its strengths and weaknesses in the context of your particular problem.
Returning to your question: the answer is "sort of". This functionality is not directly provided by the JAX-RS spec (as of 1.1). However, it is in the JAX-RS reference implementation, Jersey, through the Viewable
response object. See this blog post if you want to investigate further: http://blogs.sun.com/sandoz/entry/mvcj. I want to point out that I have no experience with this side of Jersey. It has been pleasant to write XML/JSON-returning web services with Jersey, but I can't speak to this server-side HTML templating business.
Edit: dbyrne's edited his answer to include a blog post which points to the one mentioned above. I think we've both converged on approximately the same answer.