For the November report, Fannie Mae/Freddie Mac prepayments slowed to an average of 20% across all coupons and vintages. Speeds for the month “took a giant step toward converging to our long run expectations,” said Bear Stearns.

Bear attributed the slowdown to shortened month, as there are the four less business days in November. Another factor is the continued drops in refinancing demand. Despite mortgage rates falling to 6.00% from 6.25% over the period, there was no residual refinancing seen in the numbers.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.