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Home » Store » News » Mortgage Prepayments Slow in August, but Premiums Show Some Surprises

Mortgage Prepayments Slow in August, but Premiums Show Some Surprises

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Mortgage-backed securities prepayment speeds slowed down in August, the result of rising mortgage rates in the early- to mid-summer, and Wall Street analysts expect further deceleration in coming months. The prepayment rate on Fannie Mae’s 30-year, 5.5 percent coupon bonds dropped in August to 33.5 percent from a record of 45.1 percent in July. Freddie Mac’s 5.5 percent coupon bonds prepaid at 37.3 percent last
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