Is 2.5% on 7/1 ARM good?

No points

If you are supposed to keep the deposit through the length of the loan, then it’s not a good deal, you can get ~2% interest on the savings at a decent online bank, counting that worst case you would end up paying close to ~4-4.5%

Nope.. can be used as down payment

Can you DM me too please?

Wonder why you think it is? Historically interest rates have been going down (although we are currently in that low interest stagnant state) and there many other countries in the world where they are experimenting with negative rates. If anything i would expect interest rates to go down more in a decade(might increase a bit in next few years).

Hopefully not as that would require a complete economic collapse. America has all the debt, we have 21 trillion ish reasons to never go negative. Hopefully economy grows and interest rates rise significantly. Unlikely to return to the just shy of 20% a few decades ago but let's hope!