Credit Suisse expects to see Ginnie Mae mortgage-backed securities prepayment speeds rise 10% to 15% during the November period, according to a recent report.
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The report said it bases this forecast on a rise in FHA loan application volume in September as borrowers tried to get loans before a mortgage insurance premium increase.
Analysts at the firm added that they expect an increased closing lag to occur due to the jump in apps, pushing speeds higher into the December period. This could be followed by a decline in January when they expect the backlog to clear.
