The prepayment data for June, which is due to be released this Tuesday, is not expected to show peak prepayment speeds.

Kevin Jackson, vice president at RBC Dain Rauscher, said in a report released last Wednesday that except for newer production cash flows - 2002 and 2003 production - he expects the data to show only slight dips in speeds. He believes speeds will rise again in the next few months as the market absorbs current mortgage rate levels, adding that the lag appears to have gotten longer. He attributes a large part of that to some homeowners waiting for rates to fall further.

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