Salient to Investors:
Lender Processing Services report home loans were repaid in August at a pace that would erase 25 percent of the debt in a year.
Herb Blecher at LPS Applied Analytics said the interest rate environment is favorable to get a new loan even for those who refinanced recently.
Home sales increased in August to a two-year high.
The pace of refinancing applications in 2012 are 56 percent greater than in 2011.
Prepayments on loans to underwater borrowers have risen the fastest this year.