I've been in the banking industry for 30 years. The rates will probably artificially go up before coming back down because all lenders will eventually get overwhelmed. They cannot get all of the deals done in the required time which causes problems with delivering on the rate locks which costs the lender money. Typically a rate lock for refinance is 45 - 60 days depending on the volume. Staff will have mandatory overtime, which increases the cost and decreases the morale. People get impatient and start to "shop" the rate and walk away when they find a better one, once again costing the lender money. It is exciting at first as business pours in just by answering the phone but eventually no one wants to answer the phone and 12 - 15 hour days become a grind.
As to whether to refinance, it is always a personal decision. Normally a 50/50 split between those that want to shorten the term to save money over the life of the loan and those who reset to the 30 year term and improve the monthly cash flow. Neither is right or wrong, it just depends on an individuals situation.
As others have stated there is no such thing as a "free" refinance. Some just hide the true cost in the rates they charge. The low rates that claim no fees are almost certainly going to "sell" your loan to someone else to service. That is how they will make their money. Most who have had a loan sold to a different servicer, can tell you nightmares about missing payments, screwed up escrows etc. To me, I would rather know who I am dealing with even if it costs me a bit more.
I could go on for hours but, these are a few key points I think will benefit some of you.