In this report, we leverage our own data and focus on the voluntary prepayment activity of our floating-rate K-Deals® over a 12-month period ending in June 2022. We look at prepayment speeds, lockout periods, seasoning and find that prepayments are generally highest when prepayment premiums are lowest and among the more seasoned loans.

Freddie Mac Multifamily introduced the KF series of floating-rate K-Deals to our securitization platform in October 2012. This offering provides borrowers with the ability to obtain financing indexed to lower, short-term rates along with more prepayment flexibility. Through June 2022, we have funded and securitized more than 6,100 floating-rate loans totaling over $147 billion. Floating-rate loans offer borrowers more prepayment flexibility, with 83% choosing a one-year lockout followed by 1% prepayment premium.

We've also added a fixed-rate prepayment analysis to this report. Our fixed-rate analysis is based on three years of data from June 2019 through June 2022. Generally, fixed-rate loan prepayments are minimal until the loans enter their open period, at which point prepayment speeds increase.

Read the full report.