As slowing economic numbers and favorable remarks from Alan Greenspan point to Fed tightening to begin early next year, and mortgage rates plummet 23 basis points since the beginning of December, the likelihood that mortgage rates will reach important MBS prepay triggers in 2001 has increased substantially, according to Bear, Stearns & Co.

Even more notable, in a research report released last week, researchers from Bear said that mortgage rates do not have to reach 1998 levels to match the supply volumes observed in 1998.

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