With home prices still appreciating at record levels, analysts report that the differences in growth rates on an individual state level are disguised, and in turn, artificially inflating prepayment speeds.

Credit Suisse First Boston researchers note that by looking at the national average, the market has failed to delineate the varying impact of home prices in the different regions. "Strong home price growth has elevated observed prepayment speeds across a range of refinancing incentive levels," analysts concluded.

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