Freddie Mac announced Thursday that rates on 30-Year fixed-rate mortgages had fallen this week giving opportunity for homeowners to refinance their loans. These new rates translate into a savings of about $188 on a $200,000 loan’s monthly mortgage payment.

Freddie Mac’s chief economist Frank Nothaft was quoted as saying “Interest rates for 30-Year fixed-rate mortgages are almost 1.5 percentage points below last year’s peak set in late July.”

In another report from late January, Freddie Mac stated that homeowners had borrowed $17.5 billion in home equity during the fourth quarter by refinancing their mortgages. This number was the lowest since the first quarter of 2001.

The average rate for 30-Year-fixed mortgage had been rising since hitting a record low of 4.96 percent a month ago. The decline was attributed to the Federal Reserve’s move to buy $500 billion in mortgage-backed securities hoping to increase lending by banks.

The rates do not include add-on fees known as points. The nationwide fee for 30-Year and 15 year mortgages averaged 0.7 point for this week. Fees for five year adjustable rate mortgages averaged sixth-tenths of a point, and 0.5 point for one year adjustable rate mortgages.