TITLE

May Prepay Trend Surprises Analysts

AUTHOR(S)
Peters, Terry
PUB. DATE
August 2008
SOURCE
Mortgage Servicing News;Aug2008, Vol. 12 Issue 7, p6
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The article reports that the overall prepayment rates for mortgage-back securities in the U.S. dropped by 18.0% in May 2008 from a constant prepayment rate of 15.9 CPR to 13.1 CPR. It notes that the speeds of 30-year 2006 and 2007 5.5%-6.5% coupons slowed 3-5 CPR which represents a 30% drop for 5.5s and 6.0s and a 23% decline for 6.5s. In addition, the estimated net issuance of fixed-rate MBS climbed from $48.5 billion in April to $67.4 billion in May, that is an increase of 39%.
ACCESSION #
33374485

Tags: PREPAYMENT of debts;  MORTGAGE loans -- United States;  SECURITIES trading;  BUSINESS forecasting

 

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