CPR Report: 7A CPRS FALL 24%
CPR Report: 7A CPRS FALL 24%
by Bob Judge
Government Loan Solutions
In October, prepays hit a 2012 low as they went below 5% for the second time this year.
As for the details, prepayments fell 24% to 4.52% from 5.99%, and took out the previous low for this year of 4.61% seen in April.
In comparing prepayment speeds for the first ten months of 2012 to the same period for 2011, 2012 is currently 2.63% below last year. Specifically, 2012 has an average speed of 5.46% to date, versus 5.61% for the same period in 2011. As for the largest sector of the market, 20+ years to maturity, prepayment speeds fell by 13% to 3.67% from 4.23%.