Historically, what has been the relationship between bond prepayment rates and the market rate of interest?

Question

Quizplus · Accepted Answer

Bond prepayment rates and market interest rates have an inverse relationship. When interest rates rise, prepayment rates typically decline because fewer people are likely to refinance or sell their homes. Conversely, when interest rates fall, prepayment rates typically increase as more people refinance or sell their homes.

Historically, What Has Been the Relationship Between Bond Prepayment Rates