Mortgages resumed their slide compared to Treasuries as rates rose on positive economic data. Additionally, the March prepay print came in lower than anticipated, according to Barclays.
Pay-downs decreased 12% month-over-month, driven by a decline in processing days as well as a downward tick in refinancing activity.
The march report validates a key trend of slower rate-adjusted speeds.
"With driving rates moving higher next month, one key question is where speeds will settle at current rates." Barclays said.