September 1, 2015
By Bob Judge
Editor, The CPR Report
In June, prepays moved back down toward 7% after one month above 8%.
The make-up of the drop was a large percentage fall in the default CPR combined with a smaller decrease in the prepayment element.
Defaults fell by 58%, staying below 2% for the 22nd month in a row. Historically, this reading was the 2nd lowest on record.
As for voluntary prepayments, they fell by 10%, moving back below 7% after one month above that benchmark.
Turning to the details, overall prepayments fell by 20% to 7.06% from 8.78% the previous month.
In comparing YOY prepayment speeds for this year versus last year, we see that 2015 is currently 2.61% lower than 2014, CPR 7.49% versus CPR 7.69%.