Mortgage Prepayments Expected to Remain Fast in October Report
- Fannie Mae prepayment speeds in Sept. were highest since 2004
- Record low rates, higher capacity and home prices contributing
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The wave of homeowner refinancings sparked by record low rates isn’t likely to slow down anytime soon, according to Wall Street forecasts.
Wells Fargo & Co. mortgage analysts said that Fannie Mae 30-year aggregate speeds could rise 1% with the so-called daycount unchanged at 21 days and the lending rate down a further six basis points. Citigroup Inc. analysts project conventional speeds to increase by 2%, though they forecast government-backed Ginnie Mae II MBS speeds will drop by 7% as buyouts of loans in forbearance slow.