Conventional, Ginnie Prepay Speeds Slow, but that Could Change

Mortgage & Real Estate

Conventional prepayment speeds are roughly 25% slower and Ginnie Mae speeds are down 17% to 19% from the previous month, but this trend could reverse in October, according to Credit Suisse.

The Credit Suisse researchers said Fannie Mae 4.5s in particular experienced a larger-than-expected decline.

In the Ginnie Mae sector, where Ginnie Is slowed by 19% and Ginnie IIs slowed by 17%, Ginnie II 4.5s and 5s were slightly slower than expected. Also 5.5s and 6s speeds were slightly faster than expected due to buyouts.

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