- prevailing mortgage rates
- the characteristics of the underlying mortgage pool (such as the location of the real estate)
- seasonal factors (i.e., the time of year in which the prepayment rate is measured, NOT the time of year when the mortgage were initiated) and
- general economic activity
Friday, April 30, 2010
prepayment rate of a pool of mortgages
The four main factors that have been shown to affect prepayments are
Labels:
CFA Level 2 (June 2010),
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