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.
Read the full article at http://www.bloomberg.com/news/2012-10-03/u-s-mortgage-prepayment-rate-reaches-highest-level-since-2005.html