AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Speed Watch: Early Indicators Show Prepayment Speeds Approaching 'Boom' Levels.(Brief Article)(Statistical Data Included)
Looks like it's off to the races again, with a possible replay of early 1998 in the cards.
The seasonally adjusted MBA Refinancing Index doubled for the week ended Jan. 5, 2001, reaching well into "refi boom" territory to hit 1572.1. The index had not been above the 1000 level since May 1999. Similarly, in early January 1998 the Refi Index skyrocketed from 972.7 to a then-record 1842.5.
Mortgage Information Corp.'s AFS Title Search Index also soared, reaching 173.2 (on a holiday- adjusted basis) for the week ended Jan. 5, 2001, a 40.3% jump.
Meanwhile, the average 30-year fixed mortgage rate broke the 7% barrier, falling to 6.89% (plus fees and points) for the week ended Jan. 12, according to Freddie Mac. That was its lowest level in the survey since April 1999.
The upshot?
"At current interest rate levels, April tape speeds should be faster than same coupon, similar seasoning, same mortgage rate 1998 speeds," said UBS Warburg analysts in the Jan. 9 issue of Mortgage Strategist. "This reflects both gross [weighted average coupon] creep and increased mortgage market refinanceability. But speeds will, at these rate levels, be lower than peak 1998 prepayments."
The UBS analysts said prepayment rates in the January reports for Fannie Mae and Ginnie Mae mortgage-backed securities were "generally sluggish, belying the rush of activity ahead." They speculated that potential refinancers are waiting until rates appear to hit bottom, citing historical precedent from 1998 for this "fence-sitting" behavior.
- Fannie Mae and Bear, Stearns and Company Inc. announce interest only-principal...
- Press release article from: PR Newswire February 10, 1987 700+ words
...Feb. 10 /PRNewswire/ -- Fannie Mae and Bear, Stearns & Co. Inc. announced...This is a continuation of Fannie Mae's highly successful Stripped...Security Program. Officials at Bear Stearns indicate that over 1/2 of...
- FUND GURU LIKES DURACELL FANNIE MAE, WAL-MART, BEAR STEARNS ALSO ON...
- Newspaper article from: The Cincinnati Post (Cincinnati, OH) October 29, 1996 700+ words
...Mortgage Association: Many investors view Fannie Mae, as it's known, as a stodgy middleman...target is $45, a 41 percent gain. Bear Stearns: This $5 billion Wall Street brokerage...4 percent). 202-752-7000. The Bear Stearns Companies, New York, N.Y. (BSC...
- FANNIE MAE PRICES $228 MILLION REMIC MANAGED BY BEAR STEARNS; CALIFORNIA STATE...
- Press release article from: PR Newswire January 23, 1992 700+ words
FANNIE MAE PRICES $228 MILLION REMIC MANAGED BY BEAR STEARNS; CALIFORNIA STATE...Mortgage Association (Fannie Mae) (NYSE: FNM...REMIC) managed by Bear Stearns. This issue will...form of 8 percent Fannie Mae Mortgage-Backed...
- Notice to All Bear Stearns & Co. and JPMorgan Securities, Inc. Customers Who...
- Press release article from: PR Newswire October 17, 2008 700+ words
...of purchasers of Fannie Mae Preferred Stock...JPMorgan acquired Bear Stearns earlier this year...Defendants, including Bear Stearns and JPMorgan...the offering for Fannie Mae Preferred Stock...underwriters, including Bear Stearns and JPMorgan...disregarded ...
- John Sites, co-head of Fixed Income, resigns from Bear Stearns.
- Press release article from: Business Wire July 17, 1995 700+ words
...Bear Stearns." James Cayne, Bear Stearns' President and Chief Executive...securities, Mr. Sites urged Bear Stearns to adopt a position of support. In August, 1987, Fannie Mae named Bear Stearns lead manager of the first issuance...
- Fannie Mae to Issue 'Benchmark Notes.'(Brief Article)
- Magazine article from: American Banker December 18, 1997 700+ words
...vehicle," said Timothy Howard, Fannie Mae's executive vice president and chief financial officer. Fannie Mae said the Benchmark Notes will...other distribution methods. Fannie Mae selected Bear, Stearns & Co.; Credit Suisse...
- Fannie Mae Prices $400 Million of Preferred Stock; Annual Dividend Rate Set at...
- Press release article from: Business Wire April 3, 2001 700+ words
...BUSINESS WIRE)--April 3, 2001 Fannie Mae (NYSE:FNM), the nation...including the repurchase of Fannie Mae preferred stock. Bear Stearns & Co. Inc. and Lehman...Additional information on Fannie Mae stock is available through...
- Fannie Mae to Offer $250 Million in Preferred Stock.
- Press release article from: Business Wire April 2, 2001 700+ words
...BUSINESS WIRE)--April 2, 2001 Fannie Mae (NYSE:FNM), the nation...including the repurchase of Fannie Mae preferred stock. Bear Stearns & Co. Inc. and Lehman...Additional information on Fannie Mae stock is available through...