Using individual residential ARM mortgage data in Singapore, this study finds a low prepayment rate, which is influenced predominantly by macroeconomic factors than mortgage-specific factors. Specifically, the prepayment rate is increasing in residential property prices, but declining in income (as proxied by GDP) and volatility in mortgage Rates.
Ong, Seow Eng, and Doreen Chze- Lin Thang. "PREPAYMENT RATE IN INDIVIDUAL RESIDENTIAL MORTGAGES: AN ANALYSIS OF MACROECONOMIC AND MORTGAGE-SPECIFIC FACTORS." In 7th European Real Estate Society Conference. ERES: Conference. Bordeaux, France, 2000.
Section: D2 _ Mortgages and Derivatives