Question: Answer the below questions. (a) What factor can be used as a proxy for cash-out refinancing incentives? (b) Why are prepayments attributable to cash-out refinancing

Answer the below questions.
(a) What factor can be used as a proxy for cash-out refinancing incentives?
(b) Why are prepayments attributable to cash-out refinancing likely to be insensitive to changes in mortgage rates?

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a. What factor can be used as a proxy for cash-out refinancing incentives? b. Why are prepayments attributable to cash-out refinancing likely to be insensitive to changes in mortgage rates?

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