The Up and Down of Rates in 2011 - Below 4% again

My last most, much too long ago indicated that rates were moving up. Which they did. But since then, with persistent pessimistic outlooks for US and EU growth, they have continued to trend back down. It is unlear at this point as to where rates are going from here. But they have broken down pass the 4% level (5YF) for a number of lenders. While I'm still a firm believer that the safety and security of a 5 year fixed is the way to go for many of my clients a fair argument can be made for variable. While riskier, it is hard to see a bright enough light at the end of the tunnel to think that the level of uncertainty about economic growth is going to change any time soon.