That is what it seems, but think of it like this. If you have all this available credit yet you are responsible enough to not use it, you must be a low default risk and thus you score higher.
Remember there's fed's rate, then the banks have to make a profit too now. I do think that mortgage rates will lower but they will lag behind quite a bit due to the tremendous losses they are writing off (and will continue to writeoff on CCs). IOW spreads will actually widen temporarily. The equity in your house will absorb the closing costs and thus your balance will increase on a refi. Remember the first 5 years of a mortgage is mostly interest. If you can refi to under 5.5% and you're worried about the compounded interest, go ahead with the refi but pay cash for closing costs. Inflation is so high just keep your payment lower and invest your money.