Mortgage Rates WSJ unlikely to go down further

I tend to agree

"Typically, local and regional banks lend to homeowners, then sell those loans to larger banks or aggregators, such as Citigroup Inc., Bank of America Corp., Wells Fargo & Co. and J.P. Morgan Chase & Co. These firms pool loans from across the U.S. into mortgage securities.

Normally, small banks would push rates as low as they could go in order to make more loans and thus make more money. But they have found that while lower rates may bring in more home buyers, there is little guarantee that many of these consumers will qualify for a loan under today's austere borrowing standards.

Further, these originators make money from the rates at which they can sell these loans to aggregators. Lower rates mean narrower margins for them, while the aggregators who buy these loans at lower rates stand to gain from selling them at higher rates in the secondary market."

What if one is dealing directly with a 'larger bank/aggregator' as opposed to a local/regional bank concerned with those margins? My loan was with Citi before they sold it to Freddie (they still administer). They just offered me a week refi deal, 4.25% with one point. It was funny, they used UPS instead of regular mail, like the letter would be carry more weight that way. If I can get 4%/no points, however, that would be worth it to me.