FNMA prepays registered substantial drops across all coupons and vintages in the October prepayment report, following a faster-than-expected report last month. The October report, which came out Thursday night, was in-line with expectations, said Bear Stearns.

According to Bear, new Fannie Mae 30-year 5.5% and 6.0% coupons slowed by 24% while all higher coupons slowed 10% to 20% (equivalent to seven to 12 CPR). Overall, these numbers are more in-line with the slowing scenario expected in last month’s report, said analysts.

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