MBS Prepayment Rates Jump in July:Are Hybrid ARMs Partly to Blame?
August 9, 2002
MBS Prepayment Rates Jump in July: Are Hybrid ARMs Partly to Blame? The waiting is over. Reports released this week show that mortgage security prepayments not only jumped in July, but also jumped higher than anyone expected. And with mortgage rates already down another 30-40 basis points from the levels seen just several weeks ago, there are expectations that the sky is the limit when it comes to prepayment rates in August and September.