Stick with Fixed-Rate Mortgages?

Whenever there is a downturn in the real estate market, most people run to fixed rate mortgages instead of hybrid or adjustable mortgages. Why? Well, the idea of having a stable interest rate and monthly payment can be mighty attractive for appropriate reasons. In the current market, however, one should put some thought into the process. The real estate market may be down, but the economy is also having serious problems. This means that we could be looking at a period where rates continue down in an effort to revive the economy. We've already seen the Federal Reserve Bank turn in this direction, so more cuts may be coming.