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In Veronesi's Fixed Income Securities book it is written:
Summers are characterized by large prepayments, as this is the period in which people move from one place to another for various reasons.
But why the fact of moving from one place to another will trigger prepayment?
"prepayments" in the mortgage world include when a mortgage is either refinanced or paid off when a house is sold. Since financially the effect is the same, there's no distinction made between "extra" payments and payoffs.
