The question was whether long term rates would go up, down or not change.
10 year treasuries have recently dropped substantially in yield. The only way that is sustainable is if inflation expectations have gone way down. That is possible; deflation is definitely possible.
The only way mortgage rates will remain low is if mortgages are nationalized, or we go in to deflation.
Otherwise, especially given the outlook on the housing market, declining mortgage rates make no economic sense.
