"It's a pretty safe bet that if you are able to refinance out of your
ARM into a longer-term fixed rate, now is a great time to look and probably a
pretty good time to get it done," says Gerri Detweiler, author of "The Ultimate
Credit
Handbook."
http://www.marketwatch.com/news/story/feds-overlooked-message-dump-your/story.aspx?guid=%7BEFCC57B4%2D1C56%2D4A35%2DAB41%2D01AD7A60D6A6%7D
Even thou it points that it will take a few years, before we face higher rates from the Fed, the point of the article is that its time to start planning.
I for one think mortgage rates will fall sometime in the fall and then begin to climb up and up. If you are on a ARM I would look at getting in to a fix mortgage rate ASAP. Not only will it protect you against rising rates, your home is going down in value daily. The only way to position your self in the market safely is to lock into a long term rate. That way you can hold on to your house for the long term or you can sell it when the market turns.
I know many people with very good FICOS and wonderful jobs that still remain on ARMs. It’s not that bad if everything works out, but it could be devastating for these people if the market does not turn around in the next few years.