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NEW YORK -- Prepayment rates for 30-year mortgages in Fannie Mae and Freddie Mac mortgage-backed securities fell about 12% in February in response to a 10 basis point rise in mortgage rates, slower seasonal housing activity and fewer business days, according to Bear Stearns & Co.
"The big story, however, was in the 2006 production 30-year 6.0% and 6.5% coupons, where large declines of from 3 to 4 [constant prepayment rate] were visible," said Bear Stearns analyst Dale Westhoff. "The move higher in rates ...