June prepayments are expected to be relatively flat overall, with slight gains expected in discount coupons while par and premium coupons are projected to decline slightly from May's levels. The lower coupons should benefit from seasonals.

During the period influencing the activity, mortgage rates were slightly higher at 6.61% on average in May, versus 6.51% in April, while refinancing activity was down about 5% on average based on the Refinance Index averages for May and April. The number of collection days holds steady at 22 days.

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