July 15, 2013
In May, prepays returned to the 7% level, coming in exactly at that number last month. After a move into the 5-6% range in March and April, we have returned to the levels from the first two months of the year.
As has been the case all year, the increase was caused by a double-digit rise in voluntary prepayments.
As for the detail, overall prepayments rose 19.54% to 7.00% from 5.86% in April.
In comparing prepayment speeds for the first five months of 2013 to the same period in 2012, we see that this year continues to run 25% ahead of 2012, with YTD CPRs at 6.74% versus 5.39%.
As for the largest sector of the market, 20+ years to maturity, prepayment speeds rose by 12.76% to 5.85% from 5.19% in April.