Rates retreat; homeowners continue refinance frenzy

Mortgage rates moved downward last week after three straight weeks of increases. According to Freddie Mac, average rates for the 30-year fixed-rate mortgage (FRM) during the week ended February 12 dropped from 5.25 percent to 5.16 percent. Fees and points also moved down from 0.8 point to 0.7. 'Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance,' said Frank Nothaft, Freddie Mac vice president and chief economist. 'This would translate into a monthly payment savings of around $188 on a $200,000 mortgage."