Personally, if I could afford the payments with the current rate, I'd lock it in now, knowing I could always refi later if they drop.
I don't know which way rates are headed but I'd rather lock in an affordable rate than take a chance with higher rates locking me out of the home I could have afforded with lower rates.
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)