Full text of H.16 Capital Market Developments : May 18, 1970

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

DECONTROLLED; A F T C ^ S I X MONTHS

L . 5 . 8 Confidential ( F . R . )

Ptlllli*..

V

May 18,

1970

|
j

:

mh
CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




.

/

INDEX
Developments in the Corporate and Municipal Bond Markets

3-5
6-7 .

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

WEEK ENDING:
1970 - Apr.

May

3
10
17
24

8; 55
8.30
8.65
8.75

7.85
7.80
7.82
7.83

725
551
373
317

95
68
87
99

1
8
15
22p'i-

8.91
8.98
9.10
n. a.

7.92
7.99
8.09

195
345
610
400e

99
100
97
n. a .

YIELDS
/ MOODY'S
BOND BUYER
SEASONED 20
SEASONED
Aaa
BOND INDEX

WEEK ENDING:

1970 - Apr.

May

CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS
685
444
448
733
2,717.
2,636*
2,385*

MUNICIPAL BOND MARKET
> VOLUME2
PER CENT
GROSS
BONDS SCHEDULED
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS

3
10
17
24

5.90
6;10
6.25
6.47

6.11
6 ; 33
6.50
6.73

264
429
473
398

63
88
78
73

1149
931
1047
649

1
8
15
22p

6.50
6.5.5
6.70
n. a.

6.79
6.89

196
113
322
250e

77
68

530
624

70
n. a.

449
n. a.

....
6.96

1 Derived by a d j u s t i n g t o a Aaa b a s i s , new i s s u e s of p u b l i c l y - o f f e r e d c o r p o r a t e bonds
w i t h c a l l p r o t e c t i o n , r a t e d A, Aa, o r Aaa by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l
and c o n v e r t i b l e i s s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n c o m p a n i e s , and
bonds g u a r a n t e e d by t h e F e d e r a l G o v e r n m e n t . ) 2 M i l l i o n s of d o l l a r s u n l e s s o t h e r w i s e i n d i c a t e d .
Note:

See f o o t n o t e s t o T a b l e 3

'

* AT&T r i g h t s o f f e r i n g s i n c l u d e d i n May e s t i m a t e .




»

j

TABLE 2: Details on Inventories.

DATE
OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
• '
/
ORIGINAL
RATING AND
ISSUER
YIELD CALL PROTECTION
COUPON

AMOUNT
(MIL. > )

5/14
5/14
5/13

32.0
30.0
15.0

So. C o u n t i e s Gas
Columbus 6c S o . Ohio E l e c t r i c
M o n o n g a h e l a Power

9.50
9.00
9.75

9.50
8.75
9.60

ESTIMATED PROPORTION SOLD

A 5 years
Aa 5 y e a r s
A 5 years

80%
80%
70%

)

OFFERED

.RELEASED

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

AMOUNT

NONE

• DATE
!

1970 - A p r i l 10
17
24

INVENTORIES
MUNICIPALS
BLUE LIST
!1
INt SYNDICATE
553
550
557

•

113
154.
154

•.

1

• CORPORATES
IN SYNDICATE
.

210
123
36

May

1
541
116
24
8
457
90
0
428
15
128
17
No c a l l p r o t e c t i o n .
A l l f i g u r e s i n m i l l i o n s of d o l l a r s .
B l u e L i s t i s d a i l y a v e r a g e f o r we.ek e n d e d F r i d a y , e x c e p t
FRASER
w h i c h i s d a i l y a v e r a g e of t h r e e d a y s ended W e d n e s d a y . A l l o t h e r f i g u r e s a r e a s of F r i d a y .

Digitized for


f o r l a t e s t week

BONDS IN SYNDICATE
Friday figures 1




CORPORATE BONDS IN SYNDICATE

MUNICIPAL BONDS IN SYNDICATE

Millions of dollars

7

7

NEW
CORPORATE
Aaa 1

DATE

'

• . •

' • '

'

TABLE 3: High Grade Bond Yields

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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(1/26)
4.07(8/8)

1969 - High
Low

8.85(12/5)
6.90(2/21)

7.84(12/26)
6.55(1/3)

6.97(12/26)
5.96(1/24)

6.90(12/18)
4.82(1/28)

1970 - High
Low

9.10(5/15)
8.20(2727)

8.09(5/15)
7.79(3/6)

7.15(5/8)
6.60(3/6)

6,96(5/15)
5.95(3/12)

il

8.65
8.75

7.82
7.83

6.79
7.01

6.50
6.73

1
8
15

8.91
8.98
9.10

7.92
7.99
8.09

7.08 '
7.15
7.12

6.79
6.89
6.96

1970 - Apr.
May

1

New c o r p o r a t e i s s u e s , w i t h c a l l p r o t e c t i o n , a d j u s t e d ( a s d e s c r i b e d i n
f o o t n o t e 1 of T a b l e 1) t o a Aaa b a s i s .
2
Weekly a v e r a g e of d a i l y f i g u r e s . Average t e r m of bonds i n c l u d e d i s
22-24 y e a r s .
,
j
3
Weekly a v e r a g e of d a i l y f i g u r e s .
4
T h u r s d a y f i g u r e s . The a v e r a g e r a t i n g of t h e 20 bonds used i n t h i s i n d e x
' f a l l s midway between t h e f o u r t o p g r o u p s a s c l a s s i f i e d by Moody's I n vestors Service.
N o t e - - H i g h s and lows a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s
for d i f f e r e n t series.




1

HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa,

U.S. GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1968

1969

1970

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and P l a c e m e n t s
(In millions of dollars)

GROSS PROCEEDS
CORPORATE1

PERIOD

STATE AND LOCAL 2

1970

1969

1968

January
February
March

2,601
1/830
3,400e

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

3,000e
4,XOOe

2,748
2,076
2,530

1,428
1,866
2,411

2,478
1,427
2,427

2,143
1,432
1,557

1,933
2,375
2,532

2,129
1,767
2,054

6,218
7,354
6,332
6,840

5,178
5,704
5,133
5,950

13,572
19,904
26,744

10,882
16,015
21,965

July
August.
September
October
November
December
1st
2nd
3rd
4tli

Quarter
Quarter
Quarter
Quarter

1st half
Three q u a r t e r s
. Year

783 l e

E x c l u d i n g f i n a n c e companies
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year

3

6,170

I
i
1
1

19 70

196 9

, 1,338
:
1,212
1,499

1,262
987
538

1,178
1,158
1,404

1,801
1,110
737

1,318
1,143
1,395

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

2,787
3,648
2,464
2,982

3,840
3,856
4,612
4,366

6,435
8,899
11,881

7,956
12,008
16,574

1,650e
l,000e

j

4,049

196 8-

3

!:•$
4,785
5,654
20,973

vv-Huuiaoiuu
vjLuidLeii ot . g r o s s p r o c e e d s .
_ I n^ v e s t m e n t Bankers A s s o c i a t i o n of America e- s— t i m a t e s of pH ir Ji .ni cn .i ipp aa li ac im
i uo
u uunnt t s .
T o t a l g r o s s p r o c e e d s e x c l u d i n g o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.

T

Note;

AT&T r i g h t s o f f e r i n g i n c l u d e d i n May e s t i m a t e .




TABLE 5: New Corporate Security I s s u e s , Type of Issue and Issuer
(In millions of dollars)

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
OFFERED
PLACED
STOCK FOREIGN CONVERTIBLE

6,218

1969 - Apr.
May
June
July
A u 6Sept.
Oct.
Nov.
Dec.
1970 - J a n .
Feb.
Mar. e, '
Apr. e,
1

7,354
6,332
6.840
8,230

2,657
3,411
3,186
3,479
4,968

1,540
1,673
1,347
1,053
1,092

2,023
2,268
1,797
2,307
2,170

215
227
289
115

2,748
2,076
2,530
2,478
1,426
2,427
1,933
2,375
2,532
-2,601.
1,830
3,400
3,000

1,268
871
1,272
1,279
685
1,222
969
1,164
1,346
1,594
1,068
1,900
2,000

649
510
514
609
259
479
313
226
514
485
292
400
400

830
694
744
589
482
726
651
984
672
522
470
1,100
600

62
28
137
132
122
35
59
8
48
60
33
n.<
n. a

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

1,355
1,126
750
809
.829

1,314
2,671

1,346
1,878
1,544
1,967
2,320

430
463
233
214
167
369
105
303
401
387
249
250
330

513
569
691
875
362
625
260
453
601
787
371
1,500
800

784
392
702
493
507
544
745
622
600
639
540
820
960

1,407
1,773

1,862

O t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e
and f i n a n c e , and commercial and o t h e r .
S o u r c e : S e c u r i t i e s and Exchange Commission. Q u a r t e r l y supplements a r e a v a i l able .




COMMUNICATIONS

ISSUERS 1

473
432
684
598
511

2,993
3,266
2,243
2.961
2,729

44
197
191
286
,126
272
120
201
277
229
226
260
25

1,405
915
946
826
433
984
808
1,099
694
820
1,215

/
T A B L E 6:

Large Long-term Public Security Issues for rtfew Capital.
(Other than U.S. T r e a s u r y ) 1

I:() UPON

AMOUNT
(MILLIONS
ISSUER

TYPE

v

OF

-MATURITY

DOLLARS)

RAT;: OR
;;U I.TER1 S T COST

OFFERING
YIELD

MOO I'Y,'.
RAT IN(.

Corporate
P h i l a d e l p h i a E l e c . Co.
B o i s e Cascade C r e d i t Corp.
C a r o l i n a Pwr & L i g h t
H a r t f o r d E l e c L i g h t Co.
Aluminum Co. of America
S o u t h e r n Union Gas Co.
J e w e l Cos.
G e n e r a l A c c e p t a n c e Corp.
Columbus & S o u t h e r n Ohio Co.
N a t i o n a l Cash R e g i s t e r
Burroughs Corp.
Monongahela Power Co.
S o u t h e r n C o u n t i e s Gas Co.
American B r a n d s
B e t h l e h e m S t e e l Corp.




1 s t Mtg.
Debs.
Pref. stk.
1st mtg;
S.F. debs.
S.F. debs.
Com s t k .
Debs.
Bonds
Debs.
Bonds
1 s t mtg.
1 s t mtg.
Notes
Debs.

40.0
75.0
30.0
20.0
150.0
15.0
24.7
50.0
30.0
150.0
75.0
15.0
32.0
100.0
150.0

1976
1975\

8.50
10.00

8.50
10.00

Aaa
Bbb

2000
1995
1990

9.25
9.00
9.75

9.20
9.10
9.75

Aa
A
A

1990
2000
1995
1975
2000
1995
1975
. 2000

10.25
9.00
6.00
9.00
9.75
9.50
8.88
9.00

10.25
8.75
6.00
9.00
9.60
9.50
9.00
9.00

Bbb
Aa
Baa
A
A
Aa
Aa
Aa '

T A B L E 6: Large Long-term Public Security I s s u e s for New Capital (continued)
(Other than U.S. Treasury) 1

AMOUNT
(MILLIONS
OF
DOLLARS)

COUPON
RATE OR
MATURITY NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

S t a t e & l o c a l Government
Kansas C i t y , Kansas
L o u i s i a n a Stadium and
Exposition District
F u l t o n Co. Ga, S c t u D i s t *
Oakland Co, Mich.
M e t r o . W t r . D i s t . of
Southern C a l i f o r n i a
D e t r o i t , Michigan
Miami B e a c h , F l o r i d a
Mississippi,
D e l a w a r e , S t a t e of

Rev.

22.0

1971-90

6.71

Rev.
G.O.
Bond

16.5

1971-91
1971-95
1971-99

6.00
Not r e o f f e r e d
6.71
4.60-7.00
7.55-7.57
5.00-7.80

12.0

20.9

G.O.
Rev.
Rev.

100.0

G.O.

20.9

G.O.

24.0

12.0

20.0

1980
6.96
1973-2003 6,78
1971-95 7 . 5 9
1980
6.53
1971-90 6.37

4.75-7.10

\

5.40-7.00
5.50-7.75
5.50-7.70
4.90-7.00
4.60-7.10

Other
F e d e r a l Home Loan Bank

Bonds

200.0

1972

8.15

8.15

Rights o f f e r i n g .
I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ;
S t a t e and l o c a l s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
I n c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n ;
R e v . - U t . , r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by income from p u b l i c u t i l i t i e s ;
R e v . - Q . - U t . , r e v e n u e bonds s e c u r e d o n l y by income from q u a s i - u t i l i t i e s ; R e v . - S . T . ,
r e v e n u e bonds s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , r e v e n u e
bonds s e c u r e d s o l e l y by l e a s e p a y m e n t s .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - q u a r a n t e e d i s s u e s by F e d e r a l A g e n c i e s .




N.A.
N.R.
A-l
A-l
Aa
Aa
Baa
Aa
Aa

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than.U.S. T r e a s u r y ) 1 a . s o f May 15
(continued)

ISSUER

TYPE
'

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE ~
OF.OFFERING

30.0
1569.0
20.0
45.0
30.0
45.0
60.0
150.0
45.0
30.0
25.0
50.0
75.0
25.0
35.0
50.0
60.0
60.0
100.0
70.0
30.0
30.0
35.0
70.0
100.0
25.0
40.0
25.0

May 18
May 18
May 18
May 18
May 18
May 19
May 20
May 20
May 21
May 25
May 25
May 25
May 26
May 26
May 27
May 27
May
May;
June 2
June 2
June 3
June 3
| June 4
I June 5
June 8
June 9
J u n e 10
J u n e 12

Corporate
Philadelphia Electric
AT&T
Mapco I n c .
Holiday Inn, Inc.
Canadian P a c i f i c Railway Co.
N o r t h e r n S t a t e s Power Co.
F l o r i d a Power & L i g h t Co.
New York T e l e p h o n e Co.
Ohio E d i s o n Co.
D a l l a s . Power & L i g h t Co.
*Ramada I n n s
Texas E a s t e r n T r a n s m i s s i o n
C l e v e l a n d E l e c . I l l u . Co.
Raybestos-Manhattan, Inc.
Dayton Power & L i g h t Co.
Avco Corp.
Chase M a n h a t t a n Mtg. T r u s t
Chase M a n h a t t a n Mtg. T r u s t
Penn Co.
G e n e r a l T e l e p h o n e of C a l i f .
Lone S t a r Gas Co.
Western M a s s a c h u s e t t s E l e c . C o
Kansas C i t y Power & L i g h t Co.
A p p a l a c h i a n Power Co.
New J e r s e y B e l l T e l e p h o n e Co.
West Penn. Power
Consumer Power Co.
C e n t r a l Hudson Gas & E l e c . Co
*Kansas-Nebraska N a t u r a l
Gas Co.
Consumer Power Co.
Boston Edison
L o u i s v i l l e Gas & E l e c . Co.
C a r o l i n a Power & L i g h t Co.
P a c i f i c Power & l i g h t Co.
B a l t i m o r e Gas & E l e c . Co.
* S c o t t P a p e r Co.
*American A i r l i n e




1st.mtg.
Debs, w/w
Debs.
Bonds
Equip T r u s t
1 s t mtg.
1 s t mtg.
Bonds
Bonds
1 s t mtg.
Debs.
1 s t mtg.
Bonds
Debs.
1 s t mtg.
conv. debs.
Debs.
Benf. I n t .
S . F . Debs.
Debs.
- Debs.
1 s t mtg.
1 s t mtg.
Bonds
Debs.
Bonds
Comm. S t o c k
1 s t mtg.
Debs.
1 s t mtg.
1 s t mtg.
1 s t mtg.
Bonds
1 s t mtg.
Bonds
S. F . Debs
Bonds

15.0
60.0
60.0
20.0
50.0
25.0
40-45.0
100.0
78.5

.

June
June
June
June
June
June
June
June
June

16
17
22
23
24
24
25

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. T r e a s u r y ) 1 a s o f M a y 1 5

ISSUER

TYPE

—

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

S t a t e and L o c a l Government
C o n n e c t i c u t , S t a t e of
Monroe Co. .Coram S c h . C o r p . B l d g .
Corp., I n d .
A u s t i n , Texas
M a s s a c h u s e t t s , S t a t e of
*Genesee Co,, M i c h i g a n
W i s c o n s i n , S t a t e of
Los A n g e l e s , C a l i f . P a r k i n g Auth
P u e r t o R i c o Wtr R e s o u r c e s Auth.
J e f f e r s o n P a r i s h , La.
*Alaska, S t a t e of
Richmond, V i r g i n i a
Delaware R i v e r P r t . A u t h . , N . J .
M a s s a c h u s e t t s Bay T r a n s p .
Auth. System
T u l s a , Oklahoma
* M a r y l a n d , S t a t e of
D e t r o i t , Michigan
San F r a n c i s c o B a r t s

G . Oe

75.0

May 19

1 s t M t g . Rev.
Rev. & G.O.
G.O.
Rev.
G.O.
Rev.
Bonds
G.O.
G.O.
G.O.
Rev.

10.5
11.3
47.4
11.2
69.0
25.0
70.0
15.7
12.9
27.0
75.0

May 19
May 21
May 21
May 26
May 27
May
May
J u n e 11
J u n e 17
J u n e 17
J u n e 17

Rev.
G.O.
G.O.
Rev.
Rev.

65.0
23.5
46.8
46.0
50.0

June
July
July
July
July

24
1
1
7
13

Other
Bonds

T.V.A.

*
1
2

J u n e 16

100.0 ,

Included in t a b l e f o r f i r s t time.
I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o y e r ; S t a t e and l o c a l
Government i s s u e s of $10 m i l l i o n and o v e r .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l A g e n c i e s .

Postponements:
U t i c a Community S c h o o l D i s t .
S t a t e of Montana
Colonial Stores Inc.




15.5
13.-0 o r 1 7 . 4

11.0

?

bids rejected
no b i d s r e c e i v e d
,
postponed i n d e f i n i t e l y '

TABLE 8: Stock P r i c e s and Volume

TRADING; VOLUME 2

STOCK PRICES 1
.

DATE

S&P
500 3

D . J . - IND.

. AMEX4

NYSE

AMEX

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
825.13(3/21) 21.97(3/25-

82.1(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
- Low

106.16(5/14)
89.20(7/17)

968.85(5/14) 32.91(1/3)
769.93(12/17)25.02(7/29

82.6(10/17)
32.8(4/4)

38.4(5/9)
12.9(4/4)

1970 - High

93.46(1/5)
75,44(5/14)

8 1 1 . 3 1 ( 1 / 5 ) •2 7 . 0 2 ( 1 / 8 )
684.79(5/14) 20.95(5/14)

60.1(2/6)
44.6(3/20)

28.4(1/2)
12.1(4/24)

1970 - Apr. 17
24

85.67
82.77

775.94
747.28

23.35
22.40

50.3
50.0

14.4
12.1

81.44
79.44
76.90

733.63
717.73
702.22

21.99
21.69
21.11

56.8
52.9
56.7

20.3
17.0
16.1

May

l
'

1
8
15

F i g u r e s o t h e r t h a n h i g h s and lows a r e F r i d a y s o n l y .
f o r t h e y e a r and a r e h o t n e c e s s a r i l y f o r F r i d a y s .

Highs and lows a r e
,

2

1941-43 = 10.

3

Average d o l l a r v a l u e of s h a r e s l i s t e d .

4

NYSE i s "the New York S t o c k Exchange; AMEX i s t h e American S t o c k E x c h a n g e . T o t a l
number of s h a r e s t r a d e d p e r week ( m i l l i o n s of s h a r e s ) .
Trading i s normally
c o n d u c t e d f o r 5 - 1 / 2 h o u r s p e r day and 5 days p e r week, o r 2 7 - 1 / 2 h o u r s p e r
week. I n r e c e n t y e a r s , however, a b b r e v i a t e d t r a d i n g t o t h e e x t e n t , and o v e r
t h e t i m e p e r i o d s , shown below;
Hours/
Days/
Hours/
• From;
Through:
Day
Week
Week
August 8 , 1967
J a n u a r y 22, 1968
J u n e 30, 1968
J a n u a r y 3 , 1969
J u l y 7, 1969
J a n u a r y 2 , 1970




^

August 20, 1957
4
March 1, 1968
4
December 31, 1968 < 5 - 1 / 2
- J u l y 3 , 1969
4
December 3 1 , 1969
4-1/2
May 1, 1970
5

55
4
5
5
5

20
20
22
20
22-1/2
25

15

STOCK PRICES AND TRADING VOLUME
AMEX

Weekly

1280 128

STOCK PRICES

1200 120

AMEX PRICE LEVEL INDEX

1120 112

1040 104

960

96

880

88

800

80

720

72

Millions of shares

I I J II II -II I I I II I I I 1 .1. I I I I
AMEX TRADING VOLUME (TOTAL- FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966




1967

1968

1969

1970

T A B L E 9: Security Credit

END OF PERIOI

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

_ -CUSTOMERS'
NET DEBIT
BALANCES

1969 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

5,570
5,670
5,340
5,170
5,000
4,940
5,040
5,070
4,970

2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,580 ^

8,330
8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,550

8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,445

2,579
2,753
2,613
2,803

4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

1970 - J a n . r /
Feb.r/
Mar. 2 /

4,680
4,570
4,510

2,430
2,390
2,370

7,110
6,960
6,880

6,683
6,562
6,353

2,626
2,463
2,441

4,057
4,099
3,912

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-160
-20
100
-330
-170
-170
-60
100
30
-100

-30
-20
10
-30
-40
-30
-50
-50
-50
60

-190
-40
110
-360
-210
-200
-110
50
-20
-40

-830
-274
430
-260
-699
-496
20
204
-132
. 334

-351
-271
7
1
-302
-206
2
174
-140
190

-477
-57
423
-261
-397
-290
18
30
8
144

1970 - J a n . r /
Feb.r/
Mar. 2 /

-290
-110
-60

-150
-40
-20

-440
-150
-80

-762
-121
-209

-177
-163
-22

-585
42
-187

3,077
3,084
3,085
2,783
2,577

Change i n
Outstanding:

V
2
3

'

Margin d e b t , a s r e p o r t e d by t h e New York S t o c k Exchange. A l t h o u g h m a r g i n d e b t
u n t i l March 1968 i n c l u d e d l o a n s s e c u r e d by U . S . g o v e r n m e n t s , t h e amount of such
l o a n s i n c l u d e d i s t h o u g h t t o have been s m a l l .
"Bank l o a n s t o o t h e r s , t h a n b r o k e r s and d e a l e r s f o r p u r c h a s i n g o r c a r r y i n g s e c u r i t i e s o t h e r than U.S. governments."
The d i f f e r e n c e between c u s t o m e r s ' n e t d e b i t b a l a n c e s and c u s t o m e r s ' n e t f r e e c r e d i t b a l a n c e s , t h i s f i g u r e r e p r e s e n t s t h e n e t c r e d i t e x t e n d e d by b r o k e r s and
dealers to the nonfinancial public.
NOTE: With t h e e x c e p t i o n of bank l o a n d a t a , f i g u r e s a r c s u p p l i e d by t h e New York
S t o c k Exchange and a r e end of month d a t a . Bank l o a n s a r e f o r weekly r e p o r t i n g
l a r g e commercial b a n k s . B r o k e r d a t a i n c l u d e s l o a n s f o r r e g u l a t e d s e c u r i t i e s ; bank
d a t a i n c l u d e s l o a n s f o r t h e p u r p o s e of p u r c h a s i n g o r c a r r y i n g any s e c u r i t y , w h e t h e r
r e g u l a t e d or n o t .




TABLE 1 0 : , Savings Flows at N on bank Depositary Intermediaries

($ m i l l i o n s )

DATE

1967
1968
1969
1969 - Feb.
Mar.
Apr.

SAVINGS •5c LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
NET
SHARE CAPITAL
REGULAR DEPOSITS 3
NEW
ANNUAL
ANNUAL \ NEW
2
MONEY
NET
GROWTH
GROWTH
MONEY2
NET
FLOW
RATE 1
RATE 1
FLOW
Not S e a s o n a l l y A d j u s t e d
10,649
6,129
9.4
7,399
6.0
2,738
4,020
3.1
-1,003

5,082
4,208
2,551

9.3
7.1
4.0

2,376
1,143
-747

331
642
-197

__

264
81
-325

605
1,370
-516

150
-88
-150

205
1,661
283

1970 - F e b .
Mar. j>/
Apr. £ /

246
510 .
-20

1969 - Nov.
Dec.

272
229

- —

•» —
- —

4.9
4.1

- —

——

/
TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1 "
FLOW
15,731
11,607
6,371

569
479
-543

936
2,012
-713

177
554
253

451
2,161
263

Seasonally Adjusted
——
265
2.4
47 „
0.4

537
276

9.4
6.3
3.4

N/ET
NEW
MONEY 2

b,505
3,882
-1,749

• —

327
466
103

3.2
1.3

-2.1
-754
-6.7
-117
-871
-5.2
1970 - J a n .
- ——
5.4
247
3.3
Feb.
298
2.2
545
——
1,027
5.5
304
9.2
1,331
7.9
Mar. £ /
6.2
Apr. p/
345
1,049
8.2
9.3
1,394
1 Annual growth r a t e f o r m o n t h l y d a t a i s t h e a n n u a l i z e d monthly p e r c e n t a g e i n c r e a s e i n d e p o s i t s .
2 Net New Money i s new d e p o s i t s n e t of b o t h w i t h d r a w a l s and i n t e r e s t .
Data f o r S&Ls a r e f o r
i n s u r e d a s s o c i a t i o n s o n l y , which r e p r e s e n t .96% of i n d u s t r y t o t a l r e s o u r c e s .
3 R e g u l a r d e p o s i t s a t m u t u a l s a v i n g s banks e x c l u d e i t e m s such as C h r i s t m a s c l u b and c e r t a i n
escrow a c c o u n t s , which r e p r e s e n t a v e r y s m a l l p a r t of t o t a l d e p o s i t s .
SOURCE: N a t i o n a l A s s o c i a t i o n of Mutual S a v i n g s Banks and F e d e r a l Home Loan Bank B o a r d .




833
560
868

——

——

19

SAVINGS FLOWS (seasonally adjusted)
M i l l i o n s of d o l l a r s

Monthly

2000
—

'

I

TOTAL

-

—

1600

-

1200
800

- 1 / 1

/

400
1

1

1

-

• J M 11.1111 r m

i l l

1 II 1 1 1 1 1

SAVINGS & LOANS

1966

1967




1968

1969

1970

T A B L E 11: Mortgage Commitments at S e l e c t e d Thrift I n s t i t u t i o n s

DATE

TOTAL

__

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
( N . Y . STATE)
ASSOCIATIONS

1

NET CHANGE
ALL
SAVINGS &
LOAN

ASSOCIATIONS
( B i l l i o n s of D o l l a r s , S e a s o n a l l y A d j u s t e d ) 1/

1969

Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1970 - J a n .
Feb.
Mar.

10.3
10.5
10.4

10.2
9.9
9.5
9.2
8.9

8.6
8.4

8.2

7.9
7.9

7.0
7.2
7.1
7.0

6.8
6.5
6.4

6.1
5.9
5.8

5.6
5.4
5.2

3.3
3.3
3.2
3.2
3.1
3.0

2.8
2.7
2.7

2.6

2.6

2.5
2.5

MUTUAL
SAVINGS ..
. BANKS
( N . Y . STATE)

.18

.12

.15
-.11

.14

-.36
-.31
-.33
-.24
-.25

.24

.06
.10
.12

.23

.13
.09

-.17
-.31

.06
.11
.22
.18
. 18
.12

.17

Based on d a t a from F e d e r a l Home Loan Bank Board and S a v i n g s Banks A s s o c i a t i o n s of
New York S t a t e . D a t a f o r s a v i n g s b a n k s and S & l / s i n c l u d e a m i n o r amount of nonr e s i d e n t i a l commitments. S&L commitments i n c l u d e l o a n s i n p r o c e s s , i Net c h a n g e s
a r e d e r i v e d d i r e c t l y f r o m unrounded o u t s t a n d i n g s l e v e l s a s r e p o r t e d and a f t e r
s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e . S u b t o t a l s may n o t add t o t o t a l s b e c a u s e
of r o u n d i n g .




.06
.02
.05

.06
.13
.04
.07

.02

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y.-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

T A B L E 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

FINANCIAL INSTITUTIONS |
LIFE
MUTUAL
SAVINGS/ &
INSURANCE
COMMERCIAL
SAVINGS
LOAN ~
COMPANIES
BANKS ...
BANKS
ASSOC.
Not S e a s o n a l l y A d l u s t e d
3,761
7,520
9,350
'9,407

4,648
2,914
2,496
2,056

2,323
1,797
2,508
4,375

622
671
917

134
150
125

201
221
205

136
223.
317

213
187
n.a.

604
533
529

18,197
19,988
23,827
23,485

15,874
18,191
21,319
19,110

4,705
4,639
6,677
5,152

2,760
3,118
2,796
2,495

1969 - J a n .
" Feb.
Mar*

1,701
1,750
1,964

1,500
1,529
1,759

451
480
519

293
228
198

1970 - J a n . ; |
Feb.
Mar.

1,091
1,149
n. a .

• 487
616
n.a.

100
100
0

38
106
153

1969 - F e b .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,166
1,069
1,292

668
632
567
534
440
151
310
383 ;
244
237
347

266
230
240
251
230
181
157
137
124
146
235

884
875
899
854
1,022
859
720
654
627
547
576

207
159
194
169
183
173
193
191
171
139
134

1970 - J a n .
Feb.
Mar.

1,493
1,604
n.a.

937
1,105
n.a.

288
285
114

24
143
197

400
436
276

225
241

1966
1967
1968
1969

FNMA-GNMA

•

Seasonally Adjusted

1

.

n a

' "

177
193
207
224
278
334
530
511
568
583
614
556
499
516

Monthly d a t a f o r commercial banks based on F e d e r a l R e s e r v e e s t i m a t e s benchmarked
t o C a l l R e p o r t d a t a on r e a l e s t a t e l o a n s o u t s t a n d i n g as a v a i l a b l e . O t h e r d a t a
d e r i v e d from m o r t g a g e d e b t o u t s t a n d t n g as r e p o r t e d s e p a r a t e l y by N a t i o n a l Assn.
of Mutual S a v i n g s Banks, F e d e r a l Home Loan Bank B o a r d , I n s t i t u t e of L i f e I n s u r a n c e
a n d , t h r o u g h August 1968, t h e F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n , and t h e r e a f t e r by FNMA and t h e Government N a t i o n a l Mortgage A s s o c i a t i o n .
Data f o r m u t u a l
s a v i n g s banks and f o r L i f e I n s u r a n c e companies may d i f f e r somewhat from t h o s e
d e r i v e d from r e g u l a r q u a r t e r l y s e r i e s b e c a u s e of minor c o n c e p t u a l d i f f e r e n c e s f o r
which a d j u s t m e n t s a r e n o t made i n t h e monthly s e r i e s . A l t o g e t h e r , t h e s e gr oups
a c c o u n t e d f o r 87 p e r c e n t of t h e n e t i n c r e a s e e s t i m a t e d f o r a l l h o l d e r s i n 1967.




• ••
• •
;
. •;>
NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)

•

Monthly

.
Billions of dollars

3.0

2.5
TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

B i l l i o n s of d o l l a r s ^ SAAR QUARTER
1966

!£/

II
III
IV
1967

1968

1969

ii/
HP
III|>
IVp

TOTAL
28.5
24.3
18.7
15.2
15.6
20.5

27.0
27.5

RESIDENTIAL 3

COMMERCIAL

8.4
7.0

2.6
2.1

10.0

6.8

13.8
19.6
19.9

10:5
15.7

16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

15.4
14.8
14.6
16:5

3.0
3.2
3.5
4.0

6.3
5.7 ,
6.5
7.8

17.9
16.5
15.1
13.0

4.2
4.7
4.6
3.9

6.1

14.8

15.6
11.0

12.1

9.2

26.5.

18.0
18.2

30.1

20.5

- I£/

30.4

22.1
21.2

IIP 2 8 . 5
H i t 26.4
IVp 2 4 . 0

MULTIFAMILY

6.9
6.5
5.5
4.2

19.2

- IJ» 7
HP
IIIj>
IVp

27.1
25.9

1 - -to 4 FAMILY

18.4

19.8
16.9

4.4
3.6

5.0
4.6
5.1

MULTI-AND
COMMERCIAL

FARM

11.6

2.4

10.1

2.2
2.2
1.8

8.2
6.2
7.2

1.8

8.2

1.8

8.7

8.8

2.5
2.7

9.4
8.9

2.2

10.1
11.7
10.3
9.6
9.1
9.0

2.3

1.8
1.8
2.2
2.3

2.0
1.9

D e r i v e d from d a t a on m o r t g a g e d e b t o u t s t a n d i n g from F e d e r a l D e p o s i t I n s u r a n c e
C o r p o r a t i o n , F e d e r a l Home Loan Bank Board, I n s t i t u t e of L i f e I n s u r a n c e ,
N a t i o n a l A s s o c i a t i o n of M u t u a l S a v i n g s Banks, D e p a r t m e n t s of Commerce and
A g r i c u l t u r e , F e d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n , F e d e r a l Housing
#
A d m i n i s t r a t i o n , V e t e r a n s A d m i n i s t r a t i o n and C o m p t r o l l e r of t h e C u r r e n c y .
S e p a r a t i o n of n o n - f a r m m o r t g a g e d e b t by t y p e of p r o p e r t y , where n o t a v a i l a b l e ,
and i n t e r p o l a t i o n s and e x t r a p o l a t i o n s , where r e q u i r e d , e s t i m a t e d by F e d e r a l
Home Loan Bank Board and t h e F e d e r a l R e s e r v e .
R e s i d e n t i a l m o r t g a g e d e b t i n c l u d e s nonfarm o n l y and i s sum of 1 - t o 4 - f a m i l y
and m u l t i f a m i l y m o r t g a g e d e b t combined.




t

NET INCREASES IN
Quarterly

_

TOTAL

TOTAL
RESIDENTIAL

1 4 FAMILY

COMMERCIAL

MULTIFAMILY

1970
1966




TABLE 14: FNMA " A u c t i o n " R e s u l t s

WEEK
ENDED •
1970 - J a n .

Feb.

Mar.

Apr.

IMPLICIT YIELD 2 (per c e n t )
COMMITMENTS IN $\MILLIONS
ACCEPTED
1-YEARH
1-YEAR 1
9090TOTAL
6TOTAL
6& OVER
MONTH & 'OVER
DAY
OFFERED
M0NTH
DAY

26

581.4

297.8

37.7

187.3

72.8

9.37

9.29

9.26

9
24

497.0
438.1

295.3
279.9

41.2
52.7

188.0

66.1

150.4

76.8

9.23
9.20

9.28
9.25

9.15
9.13

9
23

354.6
395.4

276.4
239.0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19
9.14

9.13
9.12

6
20

268.4
315.7

190.2
185.2

41.0
54.0

121.4
98.2

27.8
33.1

9.05
9.02

9.07
9.04

9.10
9.10

5

443.3
269.2

195.5

43.5

121.1

38.9
13.0

9.01
9.04

9.04
9.07

9.10
9.13

May

11
18

102.2 ^ 26.0
(120.0)—

63.2

Note:
Under t h e FNMA a u c t i o n . s y s t e m , a p p r o v e d s e l l e r s of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s b i d f o r FNMA f o r w a r d p u r c h a s e c o m m i t m e n t s , s u b j e c t t o an o v e r - a l l d o l l a r l i m i t a n n o u n c e d by FNMA i n a d v a n c e . B i d s
a c c e p t e d by FNMA a r e f o r d e l i v e r y a t t h e s e l l e r ' s o p t i o n , and a t any
time w i t h i n t h e s p e c i f i e d p e r i o d .
B i d s on p r o p o s e d homes r e l a t e t o
c o n s t r u c t i o n n o t y e t s t a r t e d on which m o r t g a g e s may b e d e l i v e r e d o n l y
a f t e r c o m p l e t i o n and o c c u p a n c y .
For " p r o p o s e d c o n s t r u c t i o n " of new homes o n l y .
A v e r a g e s e c o n d a r y m a r k e t y i e l d a f t e r a l l o w a n c e f o r commitment f e e and
r e q u i r e d p u r c h a s e and h o l d i n g of FNMA s t o c k , a s s u m i n g p r e p a y m e n t of
15 y e a r s f o r 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s . Y i e l d s shown
a r e g r o s s , b e f o r e d e d u c t i o n of 50 b a s i s p o i n t s f e e p a i d by i n v e s t o r s
to s e r v i c e r s .
3




FNMA a n n o u n c e d l i m i t of a c c e p t e d b i d s

for next week's auction.

27

FNMA "AUCTION" RESULTS
- '

P—.

$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

\

-

A

150

-

100

6 MONTHS

ZN

1 YEAR
V \ /
AND OVER / / V y

< |

|

I 3 MONTHS

^

50

i

v

i

i

i

i

i

i

i

l

l

i

0

i

12

IMPLICIT YIELD

•

6-MONTH COMMITMENTS

—

-

•

'

"

—

10

8
1

'

1.

1

1

1

I

I

1

1

1

1
$ Millions

—

800

•

-

f v

•

'

-

TOTAL BIDS RECEIVED

600

400
200

|

|
JUNE

| TOTAL BIDS ACCEPTED
AUG.

1969




OCT.

DEC.

'

1

1
FEB.

1

I
APR.

I

I
JUNE

1S70

I

1
AUG.

I

I
OCT.

0

1
DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY

UNADJUSTED
TYPE OF FINANCING
FHA I VA ( OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1969

Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,505
1,533
1,507
1,429
1,376
1,481
1,390
1,280
1,402

797
877
826
803
752
828
766
762
776

708
656
681
626
624
653
624
518
626

159.0
155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1

23.0
21.1
21.5
20.8
22,4
18.3
25.1
18.8
23.2

4.4
4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

131.6
130.1
121.2
99.7
98.3
106.2
93.3
74.7
57.9

1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,239

1970

Jan.
Feb.
Mar.
Apr.

1,059
1,306
1,384

577
725
702
693

482
581
682
488

66.4
74.3
113.9
123.8

16.5
17.5
25.2
32.4

3.4
3.9
4.8
5.4

46.5
52.9
83.9

1,013
1,137
1,099
1,249

1,181

86.0

T o t a l s t a r t s a r e C e n s u s e s t i m a t e s i n c l u d i n g f a r m f o r b o t h p e r m i t - i s s u i n g and
vA
n o n - i s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d w h e n . e x c a v a t i o n b e g i n s ; a l l u n i t s r;
i n an a p a r t m e n t s t r u c t u r e a r e c o n s i d e r e d s t a r t e d a t t h a t t i m e .
FHA and VA
s t a r t s a r e u n i t s s t a r t e d u n d e r commitments by t h e s e a g e n c i e s t o i n s u r e o r g u a r a.
a n t e e t h e m o r t g a g e s . As r e p o r t e d by FHA and VA, a u n i t i s s t a r t e d when a f i e l d
y
o f f i c e r e c e i v e s t h e f i r s t c o m p l i a n c e i n s p e c t i o n r e p o r t , w h i c h i s made b e f o r e
^
f o o t i n g s a r e p o u r e d i n some c a s e s b u t n o r m a l l y a f t e r t h e f o u n d a t i o n s h a v e b e e n
c o m p l e t e d . O t h e r s t a r t s a r e d e r i v e d a s a r e s i d u a l , a l t h o u g h t o t a l and FHA and
. ;v
VA s t a r t s a r e n o t s t r i c t l y c o m p a r a b l e i n c o n c e p t o r t i m i n g ; o t h e r s t a r t s i n c l u d e b o t h u n i t s f i n a n c e d by c o n v e n t i o n a l m o r t g a g e s and u n i t s w i t h o u t m o r t g a g e s .
B u i l d i n g p e r m i t s b e f o r e J a n u a r y 1963 a r e C e n s u s e s t i m a t e s f o r a b o u t 1 0 , 0 0 0 a r e a s
i d e n t i f i e d as h a v i n g a l o c a l b u i l d i n g p e r m i t system i n 1959.
Estimates beginning^
J a n u a r y 1963 a r e f o r a p p r o x i m a t e l y 1 2 , 0 0 0 and b e g i n n i n g J a n u a r y 1967 1 3 , 0 0 0 , o r
a l l known p e r m i t - i s s u i n g p l a c e s .
Unlike s t a r t s , seasonally a d j u s t e d b u i l d i n g p e r m i t s r e f l e c t d i r e c t a d j u s t m e n t f o r d i f f e r e n c e s i n t h e number of w o r k i n g d a y s p e r
m o n t h , a s w e l l a s o t h e r d i f f e r e n c e s i n t i m i n g and c o v e r a g e .




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of u n i t s

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2
BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

40

GOVERNMENT UNDERWRITTEN

1964




1966

1970

TABLE 16: Mortgage and Bond Yields

FHA
MORTGAGES

. DATE

1959-60 - High
1 9 6 1 - 6 6 - Low

CONVENTIONAL
MORT30-YEAR
25-YEAR
GAGES
3
6.26
5.43
6.73

2

1966 - High
1967 - High
Low
1968 - High
Low
1969 - High
Low

n. a.

5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99

1 9 6 9 - Dec.

n. a .

8.62

n.
n.
n.
n.

a.
a.
a.
a.

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55
8.35

1

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

NEW
Aaa CORPORATE
BONDS
4

.23
.25
.30
.11
- . 12
. 12
-.27
.40
. 13

5.25
4.41
5.82

1.69
.77
1.16

6.51
5.18
6.79
6.15
8.75
6.91

1.28
.27
1.20
.26
1.08
-.13

-.27

8.75

-.13

- —

- 8.46
8.55
.99
8.30
-.74
8.55
9.29
.60
8.60
-.65
8.55
9.20
.50
8.60
-.55
9.10 1 8.55
1
Neither mortgage nor bond yields include allowance for servicing costs which arc
- much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if compu.ted as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
' .
2
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 a n d — b e g i n n i n g July 1961--30-year mortgages with
- minimum downpayments, weighted by probable volume of transactions. Yields
•f
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 he
compared, the movement of the two mortgage yield,series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3
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 1 9 6 0 , 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.
4
See note for Table 1.

1970 - Jan.

Feb.
Mar.
Apr.

n. a .
n. a .
n.a.
n. a .




MORTGAGE AND BOND YIELDS
Monthly

*

Per cent

10

HOME

MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES
_
*

Y I E L D S P R E A D l F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis Points

200
100

1962




1964

1966

100
1968

1S70

. 32 .

TABLE 17: Conventional Mortgage Terms J
E X I S T I N G HOMES
FEES &
CONLOAN/
CHARGES
E
F F E C - MATU- PRICE
TRACT
(PER
RATE
TIVE
RITY
RATIO
CENT) RATE
(YEARS) (PER
(PER
CENT)
CENT)
2
3

NEW HOMES

DATE

FEES &
CONTRACT CHARGES E F F E C - MATURITY
(YEARS)
(PER
RATE
TIVE
CENT) RATE
(PER
CENT)
3
2

LOAN/
LOAN
PRICE
RATIO AMT.
(PER ( $ 0 0 0 )
CENT)
4
-

LOAN %
AMT. ^
($000%
4

-

'[

1969.
7.32
Mar.
Apr.
7.47
May
7.50
June
7.62
July
7.76
Aug.
7.86
Sept.
7.89
Oct. ^ 7.98
Nov.
7.97
Dec.
8.07

0 .93
0, . 9 6
0 ,. 8 8
0 .84
0 ,. 9 2
0 .. 8 6
0 ., 9 2
. 0 ., 8 9
0 ., 9 6
1 ., 0 6

7, . 4 7
7, . 6 2
7 . .65
7, , 7 6
7 ., 9 1
8 ., 0 0
8. 05
8. 13
8 . 13
8. 25

25.8
25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

73.8
72.6
73.2
73.0
72.0
72.3
72.4
72.9
72.8
71.9

24.0
24.8
25.0
24.9
24.5
24.3
24.7
25.0
24.6
25.0

7.35
7.46
7.54
7.64
7.79
7.90
7.92
7.98
8.00
8.08

0.84
0.85
0.83
0.86
0.91
0.93
0.92
0.91
0.90
0.93

7- 49
7.60
7.68
7.79
7.94
8.05
8.08
8.13
8.15
8.24

23 .0
2 3 ,. 0
2 2 ,. 7
2 2 ,. 8
2 2 ,. 8
2 2 ., 6
2 2 .,2
22. 2
22. 6
22. 9

70.2
70.4
70.6

1 .. 0 8
1 .09
1 ., 3 6

8 .,34
8 ,. 4 1

25.0
25.2

69.3
71.8

25.1
24.9

0.94
1.02

8.29
8.41

22 A
22. 4

70.3
70.2

8. 51

25.2

71.6

25.4

8.13
8.23
8.26

1.27

8.48

22. 7

70.7

72.7
71.8
71.9
71.4
71.7
71.2
70.7

1970
Jan.
Feb.

8.16

Mar.

8.28

8.23

20.2
19.9
19.7 '
20.1 •
20.1
19.8 .
19.2 ,
19.5
20.1
20.8
•i
20.5 - '
20.4
20.6

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 exclude 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 1 6 .

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 1 0 year period in addition to the contract
interest rate. '

4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly
30
MATURITY
NEW
25

EXISTING
20

15
80
LOAN/PRICE RATIO

NEW

75

70

h 1 1 1 1 1 1 1 1 1 1 1 1 n 11111 II

65

Thousands of dollliars

LOAN AMOUNT
30

20

10
I I I I I M l

1964




1966

196#

I 11 I I I I I

1970
* CHANCE IN SERIES