Conventional speeds declined around 6%-8% in January versus an expected 3% average. The factors impacting CPRs included a lower number of collection days at 20 from 21, which offset the slight 4.0% increase on average in refinancing activity in December as mortgage rates slipped to an average of 3.95% from 3.99%. 

What was most notable about the report was the absence of Home Affordable Refinance Program (HARP) 2.0 activity and higher coupons appear to be responding favorably to that in early trading. Lenders began accepting applications on Dec. 1 and there was some anticipation this would start filtering into prepayments. 

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