Prepay Spike Seen as Title Searches Jump

The AFS Title Search Index climbed 13.3% to 230.1 for the week ended Sept. 18, signaling a coming spike in prepayments, according to Bridge/Telerate Advance Factor Service.The index averaged 230.1 over the previous four weeks, up 14.1 points from the prior week's four-week moving average. A year ago, the index stood at 157.4, 60.0% of the current level. "This week's surge in the AFSTSX signifies the imminent acceleration in prepayment speeds from their currently rapid pace," said AFS manager Paul Descloux. "This is the highest number of title searches received in any one week this year. The initial impact of the current increase in title activity will be felt in the upcoming October prepayment period, with some spillage into the subsequent reporting months." Citing the current interest rate environment, Mr. Descloux predicted that "the 1998 prepayment plateau will extend robustly through the end of the year." Mr. Descloux's e-mail address is paul.descloux@cor.dowjones.com.