Thirty-year mortgage-backed security prepayments slow

Prepayments on 30-year mortgage-backed securities were slower than expected in September, two Wall Street reports show. According to the Credit Suisse Group, the pace decline on 15-year mortgage products were anticipated, but Deutsche Bank’s report said that other mortgage products were “significantly slower than expectations.” Thirty-year MBSs at 5, 5 1/2,6 and 6 percent interest rates slowed at 9, 13, and 10 percent, respectively, according to Deutche Bank’s report. “September’s slow speeds indicate that mortgage originators are not engaging in the aggressive outreach to in-the-money borrowers as they did in 2003 and other recent ‘refi’ waves, and that borrowers who ‘refi’ on their own mostly already refinanced last spring,” Deutsche Bank said.