Last week the Mortgage Bankers Association (MBA) Refinancing Index rose sharply to 8920.9, the highest number ever recorded in the 13-year history of the index. As prepayments are set to break records in the upcoming months, analysts are telling investors to add prepayment-protected securities now as the universe of refinanceable mortgages grows by leaps and bounds.

With mortgage rates at an all-time-low - down 10 basis points week-over- week- last week's Refi Index broke the record set on Oct. 4, 2002. The just-below-9000 reading represents a 30% increase from the previous peak last October. It is also a 35% increase from the prior week's level of 6614, a jump that actually surprised some analysts.

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