Credit Suisse: 30-Year Conventional Prepay Speeds Get 9% Slower

The latest round of 30-year conventional mortgage-backed securities prepayment speeds were 9% slower than the previous month, according to Credit Suisse.

Speeds on cuspy coupons slowed a little less than expected but should catch up next month, said Qumber Hassan, lead prepayment strategist at Credit Suisse.

Probably what happened is rising rates caused borrowers to close more aggressively than they normally would, Hassan said. He said the trend is likely to reverse itself and a slowdown in prepayments is expected to continue in coming months.

Credit Suisses report also shows there continues to be some relative pickup in the speeds of some Home Affordable Refinance Program cohorts and that 15-year speeds were similar to those in the 30-year sector.

Article source: http://www.nationalmortgagenews.com/dailybriefing/Credit-Suisse-Conventional-Prepay-Speeds-Slower-1038041-1.html

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