Despite rising interest rates, the number of subprime mortgage borrowers opting to refinance their mortgages increased in September, in one scenario by as much as 21.8% over the previous month, according to Michael Youngblood, head of ABS research at Friedman Billings Ramsey.

"Given the increase in mortgage rates and generally weaker seasonal factors, it is striking that there was a pickup in prepayments generally across all origination years," Youngblood stated last week in research.

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.