Full text of H.16 Capital Market Developments : August 11, 1969
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DECONTROLLED AFTER SIX L . 5 . 8 Confidential ( F . R . ) f August 11. 1969. WF CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 Capital Market Yields 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: Estimate Preliminary Revised Not available TABLE 1: Yields, Volume and Reception WEEK ENDING: 1969 - July Aug. YIELDS MOODY'S SEASONED NEW ISSUE ' Aaa CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 4 11 18 25 7.63 7.68 7.52 7.58 7.03 7.08 7.10 7.10 86 259 548 220 1 8 15£/ 7.75 7.57 n.a. 7.05 7.01 n.a. 243 148 240e WEEK ENDING: YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED BOND INDEX 1969 - July 4 ' 11 | 18 1 25 j 5.55 5.52 5.52 5.62 5.68 5.65 5.62 - 5.86 Aug. 5.78 5.70 n.a. 5.93 5.80 1 | 8 ! 15j>/| .... 49 100 86 77 ^ 97 99 n.a. 515 771 424 532 467 482 562 MUNICIPAL BOND MARKET VOLUME2 1 PER CENT 1 GROSS SOLD BY END 1 BONDS SCHEDULED | WITHIN 28 DAYS OFFERINGS | OF WEEK 129 188 347 222 142 256 200e - 57 58 70 57 690 653 656 763 97 80 n.a. 542 405 n.a. i 1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed bv the Federal Government.) 2 Millions of dollars unless otherwise indicated. footnotes to Table 3 TABLE 2: Details on Inventories DATE OFFERED AMOUNT * (MIL. $) 8/6 7/16 , 20.0 16.0 DATE OFFERED | RELEXSED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND V COUPON YIELD CALL PROTECTION •. ISSUER American Investment Wisconsin Gas 8-3/4 8-1/2 .8.80 8.40 N.R. Baa 10 yrs. , 5 yrs. ESTIMATED PR(jPORTION SOLD 90% 60% CORPORATE BONDS RELEASED FROM SYNDICATE DURING. LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON AMOUNT IN YIELD CALL PROT. PORTION RELEASED YIELD NONE INVENTORIES 1 MUNICIPALS ' IN SYNDICATE BLUE LIST | DATE 1969 - July Aug. 11 18 25 1 8j>/ 390 463 507 r/421 371 127 180 203 54 59 CORPORATES IN SYNDICATE . 10 78 57 26 8 N.C. - No call protection. Digitized 1 for FRASER All figures in millions of dollars.• which is daily average of three days Blue List is daily average for week ended Friday, except for latest week ended Wednesday. All other figures are as of Friday. BONDS IN SYNDICATE Millions of dollars CORPORATE BONDS IN SYNDICATE 200 100 r 1—|—i i—r—r—i—i—i—r~r MUNICIPAL BONDS IN SYNDICATE T T 300 200 100 SEPT. SEPT. 67 1968 DEC. MAR. JUN. 1969 SEPT. DEC. TABLE 3: High Grade Bond Yields NEW . CORPORATE 1 Aaa DATE MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 1 20-YEAR • CONSTANT . MATURITIES 3 ] BOND BUYER'S SEASONED MUNICIPALS 4 • 1967 - High Low 6.55(12/8) 5.11(2/10) 6.24(2/29) 5.00(2/10) 5.73(11/7) 4.48(1/20) 4.45(12/17) 3.40(2/2% 1968 - High Low 7.02(12/13) 6.13(8/30) 6.55(1/27) 5.95(9/13) 5.90(1/20) 5.18(8/9) 4.85(12/26) 4.07(8/8) 7.75(6/13) 6.90(2/21) 7.10(7/11) 6.55(1/3) 6.41(5/30) 5.96(1/24) 5.93(7/31) 4.82(1/28) 6.31 6.25 6.24 6.26 ' 6.18 5.65 5.62 5.86 5.93 5.80 1969 - High Low 1969 - July Aug. < 11 / 18 25 1 8|>/ 1 7.68 7.52 7.58 7.75 7.57 7.08 7.10 7.10 7.05 • 7.00 I New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. „ » HIGH GRADE BOND YIELDS [ i I I i i i • ! i i l | • i i i i i i ' i i-• i 8 NEW CORPORATE Aaa „ MOODY'S CORPORATE Aaa U S. GOVT. 20-YR. CONSTANT MATURITIES BOND BUYER MUNICIPAL Aaa : 1 ! ; 11 1965 1966 1967 1968 1969 1 I TABLE 4: Long-term Corporate and State and Local Government , Security Offerings and Placements (In millions of dollars) / GROSS PROCEEDS CORPORATE -PERIOD 1969p - January February March I 1 1968p - 1967 STATE AND LOCAL 2 1969p 1968p 1967 2,075 2,045 2,098 1,771 1,608 1/799 1,684 1,418 2,362 i i 1,263 988 540 1,178 1,158 1,404 1,492 1,236 1,450 April May June 2,707 2,102 2,560e 1,428 1,866 2,411 2,015 1,518 2,674 1 ; 1,800 1,113 711 1,318 1,143 1,395 1,130 1,254 1,497 July August September 2,360e 2,143 1,432 1,557 2,589 2,481 1,763 ; l,0Me 1,469 1,699 1,444; 950 860 1 #340 2,129 " 1,767 2,054 2,409 1,500 2,385 2,230 1,021 1,115 975 1,401 1,182 5,178 5,704 5,133 5,950 5,464 6,208 6,832 6,294 3,740 3,856 4,612 4,366 • 4,177 3,881 3,150 3,557 10,882 16,015 21,965 11,672 18,504 24,798 October November December 1st - 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 6,218 7,369 Excluding finance companies 3 ,1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 1 2 3 5,107 5,427 4,785 5,654 5,308 6,063 6,584 5,859 20,973 23,814 j 2,791 3,624 < j J 7,956 12,008 16,574 8,059 11,209 14,766 - I j Securities and Exchange Commission estimates of gross proceeds. -Investment Bankers^Association of America estimates of principal amounts. Total gross proceeds excluding offerings.of sales and consumer finance companies v TABLE 5: New Corporate Security Issue's, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. OFFERED PLACED FOREIGN | CONVERTIBLE STOCK 1968 - I II III IV 1969 - I lie/ 5,178 5,705 5,133 5,951 6,218 ' 2,465 3,105 2,606 2,555 2,657 7,369 3,397 1, 724 . 1, 644 1 361 1 922 1 540 1 ,775 1968 - June July Aug. Sept. Oct. Nov. Dec. 1969 - Jan. Feb. Mar. Apr. Maye/ June e/ July e/ 2,418 2,144 1,433 1,556 2,129 1,767 2,055 2,075 2,045 2,098 2,707 2,102 2,560 2,360 1,340 1,244 637 727 1,009 939 607 980 842 835 1,267 920 1,210 1,360 685 528 400 433 595 362 965 636 395 509 634 491 650 500 1 313 172 124 113 215 n.a. 989 956 1,166 1,474 2,023 2,196 1 385 372 396 398 525 466 483 460 808 755 805 691 700 500 . 52 47 49 28 24 49 40 103 74 38 50 28 n.a. n.a. 584 758 1,037 902 1,355 1,336 239 605 211 221 365 211 326 376 578 401 436 500 400 200 GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 i 1,,907 1, 703 1, 657 1,,712 1,,407 1 ,415 1 ,442 1,,244 1:,160 1,,435 1 ,346 422 536 490 319 473 1,407 2,223 1,825 2,483 2,993 1 ,666 421 3,832 767 843 362 453 640 421 651 403 513 491 507 239 446 475 674 443 319 627 315 404 739 377 550 370 239 239 95 156 115 162 41 186 56 231 898 822 530 472 700 741 1,044 860 1,161 972 44 197 180 300 1,409 953 1,470 1,215 515 575 360 475 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Quarterly supplements are available. Note: May 1969 figures are Securities and Exchange Commission estimates revised by the Federal Reserve Board. / TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 , . TYPE' AMOUNT (MILLIONS OF DOLLARS) MATURITY August 1 through August 8, 1969 COUPON MOO MY' RATI: OR 01TKRRAT 1 N< M . I 1..TFR- • INC, Y11-1,1) 1 ST COST Corporate Inc. Florida Power Corporation Diamond Shamrock Corp. Metropolitan Edison Co. American Investment Co. Conv. sub.debs. 1st mtg. S.F. debs. 1st mtg. Notes 15. 7 35.,0 45.,0 28.,0 20.,0 1989 1999 1994 1999 1989 6 7-7/8 7-3/4 8-1/8 8-3/4 6. 00 7,.75 7,.75 8,.00 8.,80 N.R. Aa A A N.R, TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 (continued) AMOUNT (MILLIONS OF DOLLARS) August 1 through August 8. 1969. COUPON RATE OR MOODY'S iWKRNET INTERi;.<; RATING EST COST j VILLI) State & local Government Louisiana State Bd. Comm. Baltimore Co., Maryland Georgia Highway Authority San Francisco Bay Area Rapid Transit Dist., California Cook Co., Illinois Illinois Building Auth. Texas, State of Bonds G.O, Rev. 15.0 20.0 18.5 1970-84 1971-1999 1980-94 5.59 5.90 5.93 5.20-5.50 5.20-6.25 5.50-6.00 A-l A Aa G.O. G.O. Rev. G.O. 72.0 48.1 14.0 1972-90 1970-88 1969-88 1979-1998 5.84 5.99 5.99 5.42 5.20-5.85 5.10-5.90 5.00-5.90 5.20-7.00 Aa A Aa Aaa 28.2 1973-90 7.80 7.80 Aaa 12.0 Other Intercontinental, Overseas Bulktank Corp. tier. Marine Bds. Bights offering. Includes corporate and other security offerings of $15 million and State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes gum 11 obligation; Rev.-Ut., revenue obligations secured only by income from public utilit Rev.-Q.-lit., revenue bonds secured only by income from quas i -ut i 1 i t i es; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent. revenue bonds secured, solely by lease payments. Includes foreign government and International Bank for Reconstruction Development issues, and non-quaranteed issues by Federal Agencies. -TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 As of ISSUER TYPE - AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING . Corporate Collins & Aikens Food Fair Stores Inc. J. J. Newberry Company U.S. Bancorporation Vernitron Corporation Carolina Tel. & Tel.Co. Gas Service Company Evans Products Company Ampex Corporation Philadelphia Electric Co. Beneficial Standard Corp. Hublein Inc. Great American Mtg. Investors American Elec. Pwr. Company Investment Properties Association National Health Enterprises Inc. *Iowa-Illinois Gas & Elec. Company "Pacific Northwest Bell Telephone Co. Long Island Lighting Co. Georgia Power Company Georgia Power Company Southwestern Bell Telephone Company . *Ohio Edison 15.0 25.0 20.0 25.0 15.0 45.0 15.0 60.0 60.0 50-80.0 15.0, 50.0 August August August August August August August August August August August August 11 11 11 11 11 11 12 12 12 13 13 13 Benf. int. Com. stk. 26.4 92.7 August August 15 (rts. exp.) 18 Conv. debs. Conv. debs. Conv. debs. Conv. sub. debs. Conv. debs. Debs. 1 s t mtg. Debs. Conv. sub. debs. Bonds Conv. debs. Debs. Bonds 78.8 August 18 Debs. 15.0 August 18 Bonds 20.0 August 19 Debs. Bonds Bonds Pfd. stk. 75.0 30.0 65.0 15.0 August August August August 20 25 26 26 Sept. Sept. 9 16 Debs. Bonds 150.0 40.0 r TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 LIUUCUI no i nuftuo w AMOUNT (MILLIONS APPROXIMATE DATE ISSUER TYPE OF OFFERING OF DOLLARS) Cfofo £_ 1/Sr»o1 /IrHrommcnf August 12 Rev.-Rent. Wichita, Kansas August 12 B:5 G.O. Mobile, Alabama August 12 100.0 G.O. Peimasylvania, State of August 12 20.0 G.O. Louisiana St. Bond Coram. Connecticut Health & Ed. Fac. Authority . Los Angeles Dept. of Wtr. and Pwr., California Kalamozoo School Dist., Michigan *Broward Co. Special Tax Sch. Dist., Florida New Jersey, State of ^Minnesota, State of Baltimore, Maryland W i s c o n s i n State Agencies -Bldg. Corporation *Dade Co. Bd. of Public Instruction, Florida *Bay City Sch. Dist., Mich, *Oregon, State of *Jefferson Parish, La. *St. Louis Co., Missouri *Newport News, Virginia 2/ Other — *Federal Home Loan Bank * Ontario (Province of) * 1 2 Rev. 12.1 August 13 Rev. 18.0- August 14 G.O. 12.3 August 18 G.O. G.O. G.O. G.O. 25.0 37.5 37.5 35.0 August August August August 19 19 21 26 Rev. 23.0 August 26 G.O. G.O. Bonds Bonds G.O. G.O. 13.4 10.5 47.0 August August 27 28 Sept. Sept. Sept. Sept. 3 10 11 16 Bonds Debs. 201.0 100.0 August August 13 18 10.0 13.0 16.0 Included in table for first time. Includes corporate and other is.sues of- $15 million and over; State and local Government issues of $10 million and over. Includes foreign government and International.Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. TABLE 8: Stock Prices and Volume STOCK PRICES 1 DATE S&P 500 3 1967 - High Low 97.59(9/25) 80.38(1/3) TRADING; VOLUME 2 D.J. - IND. AMEX 4 ' NYSE AMEX 943.08(9/25) 786.41(1/3) 24.52(12/29) 13.78(1/27) 60.7(8/14) 27.41(1/6) 33.5(10/27) 8.3(1/6) 1968 - High Low 108.37(11/29) 985.21(12/3) 87.72(3/5) 825.13(3/21) 33.25(12/20) 22.00(3/22) 82.1(6/7) 34.0(2/23) 45.4(6/7) 14.1(2/23): 1969 - High Low 105.94(5/16) 91.96(7/25) 968.85(5/14) 801.96(7/29) 32.91(1/3) 25.02(7/29) 72.75(5/2) 32.8(4/4) 38.4(5/9) 12.9(4/4) 852.25 853.09 818.06 826.59 824.46 27.43 27.10 26.16 26.20 26.33 51.8 48.9 41.0 70.3 48.9 1969 - July 11 95.77 18 94.95 25 91.96 Aug. ; 1 93.47 8j)'93.94 20.3 19.0 13.5 28.0 17.6 / 1 2 Figures other than highs and lows, are Fridays only. for the year and are not necessarily for Fridays. Highs and lows are Total number of shares traded per week (millions of shares). In the past, trading was normally conducted 5 days a week for 5 1/2 hours per day, or 27 1/2 hours per week. From August'8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week ' was also in effect from January 22 through March 1, 1968. From June 30 through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days a week or 22 hours. Beginning January 3, 1969, the exchanges have been open 4 hours each day, 20 hours per week. NYSE is New York Stock Exchange;AMEX is American Stock Exchange. 3 1941-43 = 10. 4 Average dollar value of shares listed. 15 STOCK PRICES AND TRADING VOLUME AMEX D.J. (Ind) Weekly STOCK PRICES AMEX PRICE LEVEL INDEX AMEX TRADING VOLUME (TOTAL FOR WEEK) - NYSE TRADING VOLUME, (TOTAL FOR WEEK) V 1965 1966 1967 1968 S&P (500) 1300 130 1260 126 1220 122 1180 118 1140 114 1100 110 1060 106 1020 102 980 98 940 94 900 90 860 86 820 82 780 78 740 74 TABLE 9: Security Credit END OF PERIOE CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: 1968 - June July Aug. Sept. Oct. Nov. Dec. 6,690 6,500 6,460 6,390 6,250 6,200 6,200 2,410 2,420 2,490 2,520 2,560 2,630 2,710 9,100 8,920 8,950 8,910 8,810 8,830 8,900 8,728 8,861 8,489 8,724 8,859 9,029 9,970 3,293 3,269 2,984 3,126 3,407 3,419 3,717 5,435 5,592 5,505 5,590 5,452 5,610 6,073 1969 - Jan. Feb. Mar. Apr. May June f>/ 5,930 5,750 5,590 5,570 5,670 5,400 2,750 2,810 2,780 2,760 2,770 2,740 8,680 8,560 8,370 8,330 8,440 8,140 9,042 9,148 8,318 8,044 8,474 8,211 3,597 3,647 3,294 3,077 3,084 3,086 5,445 5,501 5,024 4,967 5,390 5,125 1968 - June July Aug. Sept. Oct. Nov. Dec. 50 -190 -40 -70 -140 -50 50 10 70 30 40 70 80 100 -180 30 -40 100 20 80 460 133 -371 235 135 170 761 229 -24 -285 142 281 12 298 231 156 -86 85 -138 158 563 1969 - Jan. Feb. Mar. Apr. May June £./ -270 -180 -160 -20 100 -270 40 60 -30 -20 10 -30 -220 -120 -190 -40 110 -300 -120 50 -351 -217 7 2 -628 -9 -477 -57 423 -265 Change in Outstanding: 1 2 3 -- . ; -928 -51 -830 -274 430 -263 ^ Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or -carrying securities other than U.S. governments." The difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. *j NOTE: With the exception of bank loan data, figures are supplied by tho New York J Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether I regulated or not. \ TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions), •• . DATE ' ' • I MUTUAL SAVINGS BANKS' NET. REGULAR DEPOSITS 3 NEW ANNUAL 2 MONEY GROWTH NET RATE 1 FLOW SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 GROWTH NET 1 RATE FLOW TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW ' j• NET N EW MONEY 2 Not Seasonally Adiusted 1966 1967 1968 2,557 5,082 4,186 363 453 186 1968 - May June July 1969 - May June 2/ July £/ \ 308 307 -50 4.9 9.3 7.0 227 2,376 1,143 3,584 10,687 7,396 __ — 300 -111 64 757 1,622 -605 —— 227 -281 641 1,342 • — — .1 2 3 6,141 15,769 11,582 3.8 9.4 6.3 -325 8,505 3,819 __ 722 158 -606 1,120 2,075 -419 — -- 1,022 47 -542 6Q2 196 949 1,649 -1,151 -— 743 966 1,276 350 855 635 36 4.6 5.9 7.8 2.1 5.2 3.8 0.2 -- -- Seasonally Ad lusted ' 1969 - Jan. Feb. Mar. Apr. May June £/ July £/ -552 6,129 2,676 —— -1,101 • 3.2 9.4 5.9 220 384 382 160 357 161 67 4.1 7.2 7.1 3.0 6.6 3.0 1.2 —— —— . -— -- 523 582 894 , 190 498 474 -31 4.8 5.3 8.1 1.7 . 4.5 4.3 -0.3 I T— --- -- 829 -85 n. a. —-- -- Annual growth rate for monthly data is the annualized monthly percentage increase in .deposits. Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for insured associations only, which represent 967„ of industry total resources. Regular deposits at mutual savings banks exclude items, such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Banks and Federal Home .Loan Bank Board.- if dollars 2000 1600 TOTAL 1200 800 400 + 0 400 1200 SAVINGS & LOANS 800 400 + 0 400 800 MUTUAL SAVINGS BANKS 400 ' + 0 400 TABLE 11:. Mortgage Commitments at Selected Thrift Institutions ^ DATE 1968 - May June July Aug. Sept. Oct. Nov. Dec. 1969 - Jan. Feb.. Mar. Apr. May June JJ/ TOTAL 1 NET CHANGE OUTSTANDING COMMITMENTS. 1 ALL ALL MUTUAL | SAVINGS TOTAL • SAVINGS & ' SAVINGS & BANKS LOAN LOAN (N.Y. STATE) ASSOCIATIONS ASSOCIATIONS (Billions of Dollars, Seas onally Adjusted) 1/ MUTUAL ' SAVINGS BANKS (N.Y. STATE] 8.6 8.6 8.8 9.0 9.1 9.5 9.7 9.7 6.0 5.9 6.1 6.1 6.2 6.4 6.5 6.6 2.6 2.6 2.7 2.9 2.9 3.0 3.2 3.1 . -.13 -.04 .24 .16 .14 .35 .27 -.01 -.16 -.10 .16 .10 .22 .10 .08 . 02 .06 .08 .16 .04 .13 .17 -.10 9.9 10.1 10.3 10.5 10.3 10.2 6.7 6.9 7.0 7.2 7.1 7.0 3.2 3.2 3.3 3.3 3.2 3.2 .15 .25 .17 .19 -.19 -.08 .08 .22 .09 . 18 -.10 r . 03 •07 .03 . 08 .01 -.09 -.04 -- t 1 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Net changes are derived directly from unrounded outstandings, levels as reported and after seasonal adjustment by Federal Reserve. Subtotals m^y not add to totals because of rounding. Mutual Savings Banks and total data include building loans beginning August 1967. MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted) Monthly Billions of dollars 10 TOTAL S&L'S N Y. MSB'S \ * Includes building loans beginning August 1967 1960 1962 1964 1966 1968 ) 1970 TABLE 12: Net Change in Mortgage Holdings 1 DATE TOTAL INCLUDING FNMA-GNMA TOTAL FINANCIAL INSTITUTIONS MUTUAL SAVINGS & • SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. 1965 - I II III IV 4,761 6,365 6,469 6,303 4,813 6,431 6,403 5,947 823 1,749 1,805. 1,322 1966 - I II . Ill IV 5,425 5,648 3,976 3,056 4,630 5,097 3,468 2,587 1967 - I II III IV 2,617 4,868 6,285 6,246 2,267 4,762 5,706 5,484 1968 - Apr. May June. July Aug. Sept. Oct. Nov. Dec. 1,978 2,238 2,125 1,851 1,982 2,000 2,314 2,088 2,483 1,732 2,003 1,905 1,699 1,841 1,892 2,153 1,943 2,311 616 616 616 533 533 746 807 706 404 1969 - Jan. Feb. Mar. Apr. 1,750 1,770 1,945 2,202 2,165 n. a. 1,549 1,549 1,740 2,011 1,980 n.a. 500 500 500 600 600 600 June LIFE INSURANCE COMPANIES FNMA-GNMA -52 -66 66 356 965 . 946 1,072 1,078 1,860 2,706 2,460 -1,947 1,165 1,030 1,066 1,600 975 1,656 1,300 774 753 513 739 715 1,683 1,651 373 54 1,219 1,277 1,056 1,044 795 551 508 469 151 1,200 1,751 1,537 770 786 839 ,758 486 2,119 2,595 2,320 860 657 521 869 350 106 579 762 160 203 219 248 233 221 313 310 340 879 957 901 718 874 810 845 732 903 88 216 169 200 201 115 188 195 664 246 235, 220 152 141 108 161 145 172 134 150 125 181 159 n.a. 201 221 205 191 185 222 ' 293 228 198 . 204 233 216 622 671 917 1,026 988 1,220 . to Call Report data on real estate loans outstanding as available. Other data ' derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance aadf through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings-banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 87 per cent of the net increase estimated for all holders in 1967. FNMA includes GNMA after September 1, 1968. 1 NET CHANGE IN MORTGAGE HOLDINGS Monthly 3.0 2.5 TOTAL, INCL. FNMA - GNMA 2.0 1.5 FINANCIAL INSTITUTIONS 1966 1968 1.0 1969 24 - / TABLE 13: Net Increases in Mnrt.apno Debt Outstanding Billions of dollars, SAAR 2 RESIDENTIAL 1- to 4FAMILY MULTIFAMILY COMMERCIAL 1 MULTI-AND COMMERCIAL FARM ' QUARTER TOTAL 1965 - I II III IV 24.9 25.2 25.8 26.6 18.6 18^5 19.3 19.6 15.1 15.1 15.5 15.8 3.5 3.5 3.8 3.8 4.2 4.5 4.4 4.6 8.0 8.1 8.4 7.9 1966 - I II III IV 28.3 24.2 18.4 15.6 19.0 15.6 10.8 .'9.5 14.7 12.1 8.3 7.2 4.3 3.5 2.6 2.3 6.9 6.5 5,4 4.3 11.6 10.0 8.3 6.2 2.4 2.2 2.1 1.7 15.5 1967 - I p 20.4 Hp III , 26.3 IVp 28.6 9.9 13.7 19.1 20.9 6.8 10.5 15.3 16.5 3.0 3.3 3.8 4.4 3.8 4.8 4.8 5.1 7.3 8.1 8.8 8.8 1.8 1.9 2.4 2.6 26.9 25.8 25.8 31.3 18.2 17.9 17.7 21.5 15.4 14;8 14.1 17.0 2.8 3.1 3.5 4.5 6.2 5.7 6.4 8.1 9.4 8.7 10.2 11.8 2.4 2.3 1.8 1.7 . 1969 - Ip 1 ! 30.2 IIP 27.1 21.1 19.3 18.0 16.r 3.2 3.2 7.1 5.9 10.6 9.0 2.0 1.9 1968 - IP IIP III: IVp 1 2 2.2 2.1 2.2 2.4 I Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of non-farm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated by Federal H o m e Loan Bank Board and the Federal Reserve." Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family and multifamily mortgage debt combined. | | * g f i ?{; 1 ' \ 25 NET INCREASES IN MORTGAGE DEBT OUTSTANDING Quarterly Billions of dollars, seasonally adjusted annual rate TOTAL TOTAL RESIDENTIAL I 1-4 FAMILY COMMERCIAL MULTIFAMILY 1965 1967 1969 TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED, IMPLICIT YIELD 2 (per cent) COMMITMENTS IN $ MILLIONS \ ACCEPTED 1-YEAR11 1-YEAR 1 909066TOTAL TOTAL & OVER MONTH & OVER DAY DAY MONTH OFFERED May 5 12 19 26 170.8 210.4 236.2 263.0 84.4 85.0 83.3 96.1 6.7 9.3 13.8 12.3 58. 2 55. 9 51. 0 67. 8 19.5 19.7 18.5 16.0 7.89 7.87 7.86 7.88 7.89 7.88 7.87 7.90 7.82 7.80 7.80 7.83 June 2 9 16 23 304.6 291.6 409.7 304.1 103.0 100.2 100.5 124.3 15.3 21.3 15.4 8.7 65. 5 57. 7 66, 8 92.,5 22.1 21.2 18.3 23.1 7.91 7.98 8.30 8.36 7.93 8.00 8.25 8.40 7.85 7.91 8.14 8.26 July 7 14 22 28 \195.5 177.1 250.9 298.2 121.0 129.7 130.9 1291.6 24.1 17.4 19,1 15.9 85.,1 100,,9 93,,5 92,,4 11.7 11.5 18.3 21.3 8.42 8.39 8.30 8.25 8.47 8.40 8.31 8.26 8.31 8.29 8.19 8.15 Aug. 4 12514 19.1 (130.0); 3/ 78 .9 27.4 8.27 8.28 8.16 ! 282.5 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids accepted by FNMA are for delivery at the seller's option, and at any time within the specified.period. Bids on proposed homes relate to construction not yet started on which mortgages may be delivered only after completion and occupancy. 1 For "proposed construction" of new homes only. 2 Average secondary market yield after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 50 basis points fee paid by investors to servicers. •" 3 FNMA announced limit of accepted bids for next week's auction. , FNMA WEEKLY "AUCTION" RESULTS * ' • : $ Millions 120 AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD 100 1 YEAR AND OVER 60 6 MONTHS 20 3 MONTHS Per cent 8.6 -IMPLICIT YIELD 6-MONTH COMMITMENTS " - \ y 1 • 1 1 • 1' 1 1 1 1 ' 1 1 • 1 ! l: 1 1 •I 1 I - 8.0 — 7.4 I 6.8 $ Millions TOTAL BIDS RECEIVED TOTAL BIDS ACCEPTED JUNE AUG. OCT. 1968 DEC. FEB. APR. JUNE 1969 AUG. OCT. DEC. TABLE 15: Private Housing Starts and Permits STARTS DATE 1968 way " June July Aug. Sept. Oct. Nov. Dec. 1969 - Jan, Feb. Mar. Apr. May £ / SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL 1.364 1.365 1,531 1,518 1,592 1,570 1,733 1,509 838 790 904 867 944 965 905 922 140.9 137.9 139.8 136.6 134.3 140.8 127.1 96.4 1,878 :,686 ,584 .,563 ,505 1,066 975 838 797 526 575 627 651 648 605 828 585 812 711 756 766 625 101.5 90.0 131.9 159.0 155.2 UNADJUSTED TYP OF FINANCING BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 20.5 19.8 5.5 5.0 20.9 4.8 114.9 113.1 116.2 110.9 21.4 17.5 16.3 5.3 4.2 4.4 114.0 105.4 75.7 1,280 1,281 1.289 1.290 1,393 1,378 1,425 1,463 14.2 3.8 13.2 3.5 18.9 3.9 23.0 4.4 21.1 4.3 71. 5 4. 83.5 73.3 109.1 131.6 129.8 118.9 1,403 1,477 1,421 1,502 1,328 1,326 18.8 4.9 18.6 4.6 111.1 <80 Juns&Z. M L . -Zfifiu oks.n J&SL. Total starts are Census estimates including farm for both permit-issuing and noi,-issuing areas. A dwelling unit is started when excavation begins; all units in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages. Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits' reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. PRIVATE HOUSING STARTS AND PERMITS Monthly,annual rates Millions of units SEASONALLY ADJUSTED 2.0 HOUSING STARTS 1.2 BUILDING PERMITS PER CENT OF UNADJUSTED TOTAL STARTS MULTI-FAMILY GOVERNMENT UNDERWRITTEN 1963 1965 1967 1969 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 2 DATE 25-YEAR 30-YEAR 1957 - High 1958 - Low 1959-60 - High 1961-66 - Low 1966 - High . 1967 - High Low 1968 - High Low 5.63 5.35 6.26 5.43 6.73 n. a. n. a. n.a. n. a. n. a. n. a. n. a. 5.44 6.81 6.81 6.29 7.52 6.78 1968 - Dec. 1969 - Jan. Feb. Mar. Apr. May June n. a. n. a. n. a. n. a. n. a. 7.50 -7.99 8.05 8.06 8.06 8.35 1 NEW SPREAD BECONVENTIONAL : TWEEN YIELDS 'Aaa CORPORATE ON CONV. & MORTFHA MORTBONDS GAGES 4 3 GAGES 6.00 .47 . 4.94 5.55 , .15 3.65 5.25 6.30 .23 5.80 .25 4.41 6.70 .30 5.82 6.65 6.51 .11 6.40 -.12 5.18 7.30 6.79 .02 6.15 6.75 -.27 7.40 7.55 7.60 7.65 7.75 7.75 8.00 -.10 . - — -.39 -.40 -.31 -.31 -.35 6.79 6.92 6.91 7.37 7.17 7.22 7.58 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 1.58 .88 . 1.69 .77 1.16 •• 1.28 .27 1.20 .26 .71 • • 1.08 .68 .89 .84 .77 Neither mortgage nor bond yields include allowance for servicing costs which artmuch higher for mortgages than for bonds. Generally, bonds pay interest semiannually; -mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for.immediate delivery. Separate data available for 25-year and—beginning July 1961 —30-year mortgages with "minimum downpayments, weighted by probable volume of transactionsi" Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. Over the period for which they can be compared, the movement of the two mortgage yield series has been similar. Dashed lines indicate periods of adjustment to changes in contractual interest rates. Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office . cities. Beginning with April 1960, rate relates only to new-home mortgages; prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.. See note for Table 1. MORTGAGE AND BOND YIELDS Monthly 1 9 HOME MORTGAGES: CONVENTIONAL Aaa CORPORATE BONDS: NEW ISSUES / V \ / Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS) Basis points 200 100 1962 1964 1966 r 1968 1970 TABLE 17: NEW HOMES DATE CON- FEES & TRACT CHARGES EFFEC- MATURITY (PER ' TIVE (YEARS) RATE CENT) RATE (PER CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICK (PER RATE TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 , 3 LOAN AMT. ($000) 1968 6.88 7.04 Z.10 7vl0 7.09 7.07 7.09 0.95 0.85 0.87, 0.87 0.88 0.84 0.89 7.03 7.17 7.24 7.24 7.23 7.21 7.23 25.4 25.5 25.5 25.5 25.6 25.4 25.9 74.4 73.7 73.6, 74.2 74.5 74.1 74.0. 22.3 22.2 22.6 22.1 22.7 22.5 24.7 6.97 7.10 7.12 7.11 7.09 7.07 7.09 0.86 0.83 0.85 0.82 0.84 0.82 0.85 7.12 7.23 7.26 7.25 7.22 7.21 7.23 22.6 22.5 22.7 22.6 22.5 22.7 23.3 73.1 72.6 73.0 72.6 72.4 72.9 73.2 18.2 18.5 18.6 18.3 18.3 18.9 20.4 7.16 Jan. Feb. r 7.26 Mar. 7.32 7.47 Apr. May £/ 7 . 5 0 June £/ 7 . 6 1 0.84 0.81 0.93 0.96 0.88 0.85 7.30 7.39 7.47 7.62 7.65 7.75 25.6 25.6 25.8 25.4 25.8 25.5 73.6 . 2 4 . 1 73.3 23.5 73.8 24.0 72.6 24.8 73.2 25.0 73.0 "25.0 7.18 7.28 7.35 7.46 7.54 7.63' 0.86 0.86 0.84 0.85 0.83 0.85 7.32 7.42 7.49 7.60 7.6b 7.73 22.8 22.9 23.0 23.0 22.7 22.9 72.6 72.8 72.7 71.8 71.9 71.7 20 0 19 6 20 2 19 9 19 7 20.1 ; June July Aug. Sept. Oct. Nov. Dec. 1969 1 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exelude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage rates--in Table 16. 2 "Fees and charges--expressed as a percentage of the principal mortgage amount — include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 3 -Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. | ^ | | K § £ i | } CONVENTIONAL MORTGAGE TERMS Monthly Years 30 MATURITY NEW EXISTING LOAN/PRICE RATIO NEW EXISTING 1963 1965 1967 1969 * CHANGE IN SERIES