In a recent report, Citigroup Global Market analysts examined the current Federal Housing Administration/Department of Veterans Affairs mortgage rates and their impact on prepayment speeds.

According to the Mortgage Bankers Association, the FHA/VA mortgage rates have been below corresponding conventional mortgage rates by roughly 50 basis points. However, despite the relatively low rates available on FHA/VA loans through mid-January, the MBA Government Fixed-Rate Application Index had increased in line with the corresponding Conventional Index relative to November levels.

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