Why Wont Lenders Pass on the Lower Rates???

I thought I would throw something out there for people to chew on. I just priced out a vanilla loan structure (LOW LTV: PERFECT CREDIT; CONFORMING LOAN) and got a par rate hovering around 5.5-5.625% yet the market is easily supporting a par rate closer to 5.25%. I think it is a perfectly legitimate question to ask why some (not all) lenders are not passing on the lower rates to consumers when it the consumer that has and continues to keep the financial industy afloat.

1. The consumer (tax dollars) continues to support the Treasury and MBS Market

2. The money being made by banks right now centers around fixed income trading (which again is supported by tax payers)

Yet, some banks have "rewarded" consumers with higher rates, higher closing costs, and higher fees in other areas of banking. You would think banks would be a little more appreciative of the consumer who saved them from complete and total collapse.........

Most banks have tons of overhead and they need to pad the rates to make a profit.  The par rate should be more like 4.875% for today’s pricing.