Will rates dip below 4.25%?

I read the writing of Adam Quinones @ mortgage news daily religiously, if you ever want to try to understand how interest rates work, I suggest following Adam. He wrote great wrap up of the week that was and a look ahead. The long and short of it is, even if prices and yields point towards LOWER interest rates, there still needs to liquidity to make this happen. i.e investors that are willing to purchase these low margin securities. As of today, that liquidity does not exist. Barring the dreaded "double dip" recession, the liquidity needed to support interest rates below the hard floor of 4.25% will probably not occur. In short, it is not impossible for rates to drop below 4.25% or even 4%, but it is highly unlikely.  When you are making your decision as to whether lock, float or just wait, ask yourself this : Would you rather take a guaranteed $100 today, or hold out for a 20% chance of getting $200 tomorrow while risking the $100 that you already have in hand?  This is not about being conservative or aggressive, this is about being smart. Stay cool this weekend, and GO TEAM USA!