FNMA speeds in April were slower than consensus estimated. Speeds were expected to decline about 8% to 10% primarily as a result of the lower amount of collection days, 19 versus 23 in the previous month. However, CPRs were down around 10% to 13% for 4.5s through 2005 vintage 5.5s; and 15% to 20% for more seasoned 5.5s and higher coupons. "While the Easter holiday and higher rates can explain some of the additional slowdown," Lehman Brothers analysts said. "We see this as another sign of a cooling housing market."
Gold speeds recorded larger percentage declines for certain lower coupon vintages compared to FNMAs. Speeds on lower coupons are similar to comparable FNMAs. In general, higher coupons declined similar to slightly less than comparable FNMAs. Still, speeds on Golds are 1 to 2 CPR behind comparable FNMAs for many coupons and vintages.