|Sally A. Runyan/Thomson Reuters|
Of particular interest in the report was HARP-related refis.
At this time, conventional prepayment speeds are projected to slow around 5% on average in April from March in IFR Markets' sample with 4.5% coupons and lower dropping around 10%. Meanwhile, 5.5s and higher are seen slipping just 2.0% on increased HARP 2.0 refinancing activity. Looking ahead to May, speeds on 30-year Fannie and Freddie MBS are seen flat to slightly higher on 3.5% through 5.0%s and by around 5% on higher coupons.
Meanwhile, the Purchase Index dropped 11.2% to 181 as applications for FHA purchase loans plunged 23% said
As a result of the recent FTQ rally, 30-year mortgage rates are back to lows reached last February. The contract interest rate for 30-year fixed conforming loans declined to 4.05% from 4.10%, while FHA rates were down four basis points to 3.83%.
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|Source:||Source Media, Inc.|