Fannie Mae and Ginnie Mae mortgage-backed securities prepayment speeds fell victim to a lower number of trading days in the month of July, resulting in declines across most coupons.

Speeds declined alongside a slowdown in the housing market, as new home sales saw a drop, while existing home sales are increasing. "It is the sales of existing homes that trigger prepayments," said Warren Xia, a prepayment specialist at Banc of America Securities.

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