There is no end in sight for the current refinancing wave, as the mortgage market is expected to see the largest volume of paydowns over the coming summer months.

Art Frank, head of mortgage research at Nomura Securities International, said at a press briefing held last Thursday morning that prepayment speeds are going to be at levels never seen previously. For example, 30-year FNMA 5.5s are expected to hit 50 CPR while 30-year FNMA 6s would probably prepay at 75 CPR in July and August.

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