Conventional 30-Year Prepay Speeds Drop 11%

Nonconforming

Thirty-year conventional prepayment speeds have declined by 11% in the most recent month, according to Credit Suisse.

Surprises during the month included faster-than-expected Home Affordable Refinance Program speeds in Freddie Mac securities and slower-than-expected speeds in 2011-2012 vintage Fannie Mae 3.5s, according to the company’s research.

Fifteen-year speeds also slowed, but to a lesser degree than was seen in the 30-year sector, and aggregate speeds of 30-year product in the Ginnie Mae sector were 3% slower for Ginnie Mae Is and 7% slower for Ginnie Mae IIs.

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