And Brean Capital's Scott Buchta said on.....>

US MBS: And Brean Capital's Scott Buchta said on the MBA applications data out

today that the "bottom line" is that "Mortgage Applications dropped to their

lowest level in 10 months on the heels of rising mortgage rates and a seasonal

slowdown in turnover activity."

- "With headline rates now above 4.00% at many lenders, look for prepayments to

be driven primarily by HPA in 2018 (housing turnover rates, cash-out refis and

FHA-to-conventional refis)," Buchta said. "The expected passage (and signing) of

the Tax Bill could add a new wrinkle to regional HPA projections (and future

prepayment speeds) as borrowers (and affordability) in high-tax/high-cost areas

will see the biggest impact from the newly imposed limitations on SALT

deductions."