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Article: Prepay Rate Slowing Down.
- Article from:
- Mortgage Line
- Article date:
- May 17, 2007
CopyrightCOPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Prepayment rates for 30-year mortgages in Fannie Mae and Freddie Mac mortgage-backed securities fell about 12% in February in response to a 10 basis point rise in mortgage rates, slower seasonal housing activity and fewer business days, according to Bear Stearns & Co.
"The big story, however, was in the 2006 production 30-year 6.0% and 6.5% coupons, where large declines of from 3 to 4 [constant prepayment rate] were visible," said Bear Stearns analyst Dale Westhoff. "The move higher in rates had ...