I am in the wholesale mortgage industry for the past 6 years and yes, right now is a difficult time. The key to refinancing, only do so if you have a reason (need cash to pay for the wedding, you were in a NegAm loan that is coming due, you are in an adjustable loan and want to get into a fixed, etc...). Do not refinance if you don't have a specific reason. You should refinance to lower your payment and depending on when you obtained your mtg., right now is not a good time as rates have gone insane over the last month. Most of the big banks are in trouble and pulling out so there are fewer and fewer places to go.
PM me if you want me to help you see if your situation would benefit you. I am an Area Sales Manager and have done this for several years. Biggest thing I would say is go to someone you trust and ask about the front and back points as the retail loan officers are doing less loans than they used to and some are charging more per loan to make up for it (there are still lots of GREAT LO's out there though, so look around).