Posted To: MND NewsWire
In its “first look” at May mortgage data published last month Black Knight Financial Services noted that the prepayment rate for mortgages, historically a good indicator of refinance activity, rose by 3.31 percent from April to 1.30 percent. However, the company also noted that prepayment rates continue to trail 2015 levels (down by 2.40 percent from May 2015) despite interest rates being lower than last year. In this month’s Mortgage Monitor Black Knight takes a deeper look at these prepayment rates (CPR) and finds that Ginnie Mae, which buys or guarantees government-backed mortgages (FHA, VA, etc.) have outpaced all other investor categories for 19 of the last 24 months. During the past 12 months, overall prepayments on Ginnie Mae loans have been roughly 13 percent higher than the rest of…(read more )