Full text of H.16 Capital Market Developments : November 13, 1972
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DECONTROLLED AFTER SIX MONTHS L.5.8 Confidential (F.R.) November 13, 1972 /.w 2i X x CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and S t a t i s t i c s , Board of Governors of the Federal R e s e r v e System, Washington, D. C. INDEX D e v e l o p m e n t s in t h e C o r p o r a t e and Municipal Bond M a r k e t s C a p i t a l Market Y i e l d s C a p i t a l Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r n o. Revised Not a v a i l a b l e T A B L E 1: Y i e l d s , Volume and R e c e p t i o n WEEK ENDING: 1972 - Oct. 6 13 20 27 Nov. 3 10 17 WEEK ENDING: YIELDS MOODY1S NEW ISSUE SEASONED Aaa fJTtLITY 1 7.44 7.23 7.48 7.22 7.30 7.21 7.34 7.19 7.28 — 7.18 7.16 YIELDS BOND BUYER MOODY'S NNEW ISSUE SEASONED 20 BOND INDEX Aaa CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 433 88 n.a. 171 69 n. a. 564 80 n.a. 395 49 n. a. 120 125 125e 100 75 e n.a. ^ n. a. MUNICIPAL BOND MARKET VOLUME2 PER CENT BONDS SCHEDULED GROSS SOLD BY END OF WEEK OFFERINGS WITHIN 28 DAYS 1972 - Oct. 6 13 20 27 5.05 5.00 5.05 5.00 5.22 5.16 5.23 5.13 382 707 474 334 98 82 66 75 993 690 749 679 Nov. 3 10 17 4.90 5.00 . 5.04 5.10 340 331 452e 71 39 654 1,548 1 New series derived by adjusting to a Aaa utility 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 by the Federal Government ). For additional details and back data, see the September 1972 issue of the Federal Reserve Bulletin. The Aaa corporate yield series previously published in the L.5.8 has been discontinued. 2 Millions of dollars unless otherwise indicated. NOTE: See footnotes to Table 3. T A B L E 2: DATE OFFERED 11/9 OFFERED 1 AMOUNT 1 (MIL. $) First Nat'1 City 125.0 DATE 1 RELEASED D e t a i l s on I n v e n t o r i e s CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION 6 5/8 6.67 NR 7 yrs INVENTORIES 1 Nov. MUNICIPALS 13 20 27 835 835 892 3 963 917 10 N.C. - No call protection. 75% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON YIELD IN .YIELD CALL PROT. PORTION RELEASED AMOUNT DATE 1972 - Oct. ESTIMATED "PROPORTION SOLD IN SYNDICATE 119 193 149 ¥s CORPORATES IN SYNDICATE 59 145 235 0 31 T A B L E 3: DATE NEW ISSUE Aaa UTILITY High G r a d e Bond Y i e l d s MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 1970 - High Low 9.43 (6/19) 7.72 (12/11) 8.60 (7/3) 7.48 (12/21) 7.55 (5/29) 6.17 (12/18) 7. 12 (5/29) 5.33 (12/11) 1971 - High Low 8.26 (7/30) 7.02 (2/5) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6. 23 (6/23) 4. 97 (10/21) 1972 - High Low 7.60 (4/21) 7.08 (3/10) 7.36 (4/28) 7.16 (8/1) 6.19 (4/14) 5.89 (10/3) 5.54 (4/13) 4. 99 (1/13) 1972 - Oct. 6 13 20 27 7.44 7.48 7.30 7.34 7.23 . 7.22 7.21 7.19 6.07 6.02 6.00 5.96 5.,22 5.,16 5.,23 5.,13 Nov. 3 10 7.28 7.18 7.16 5.89 5.80 5 .04 5 .10 ; -- New issue Aaa utility, 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 21-2k 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. T A B L E 4: Long-term C o r p o r a t e and S t a t e and L o c a l G o v e r n m e n t S e c u r i t y O f f e r i n g s and P l a c e m e n t s (In m i l l i o n s of d o l l a r s ) GROSS PROCEEDS 1 CORPORATE PERIOD STATE AND LOCAL 2 ! 1972 1971 1970 1972 1971 January February March 3,205 3,369 3,229 3 ,115 3 ,000 6 ,075 2 ,636 1 ,802 3 ,539 i ,776 2 ,002 2 ,237 2 ,732 1 ,851 2 ,258 1 ,340 1 ,214 1 ,555 April May June 3,275 3,598 4,341 4 ,042 3 ,300 4 ,375 3 ,170 3 ,909 . 3,389 2 ,114 1 ,986 2 ,224 1 ,891 2 ,167 2 ,013 1 ,647 996 1 ,085 July August September 3,436 2,833 2,750e 4 ,147 2 ,532 3:,768 2 ,768 2 ,274 3;,518 1,771 i,918 1;,693 1 ,989 1 ,903 2 ,098 1 ,348 1 ,359 1 ,758 October November December 3,550e 3.,387 3.,704 3 3,673 3.,777 4,,182 3,,980 1,,850e 1,,728 2,,264 2.,068 1,,924 1.,748 2.,190 9,803 11,214 9,019e 12,,190 11,688 10,447 10,764 7,,977 10,,468 8,560 11,939 6,,015 . 6,325 5,382 6, ,841 6,,081 5,,990 6,060 4,,109 3,,728 4,,465 5,862 21,017 30,036e 23,844 34,325 45,089 18,445 27,005 38,944 12,912 18,902 24,962 7,837 12,302 18,164 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 : ! | i ^12",339 17,722e 1970 1 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. T A B L E 5: QUARTER OR MONTH TOTAL New C o r p o r a t e S e c u r i t y I s s u e s , T y p e of I s s u e a n d I s s u e r (In m i l l i o n s of d o l l a r s ) CROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: BONDS PUBLICLY 1 PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED STOCK FOREIGN | CONVERTIBLE OFFERED GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 1971 - II III IV H~,688 10,447 10,764 6,546 4, 725 5, 135 1,758 1,641 2,439 3,384 4,079 3,193 215 114 133 1,351 652 767 3, 130 2,,202 2,,543 2,910 2,651 3,041 896 2,,263 1.,053 4,753 3,331 4,164 1972 - I II Hie 9,805 11,214 9,019 5,361 4,,634 4,,176 1,593 2,781 1,703 2,851 3,798 3,140 74 245 17 511 449 830 1,,525 2,,109 1,,687 2,261 3,495 2,498 1,476 1.,369 842 4,541 4,240 3,990 3, 768 I,,966 606 1,196 8 293 1.,146 1,070 282 1,271 Oct. Nov. Dec. 3,,387 3,,704 3,,673 1,,942 2,,003 1,,190 723 433 1,283 723 1,269 1,201 59 62 12 222 395 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 1972 - Jan. Feb. Mar. 3,,205 3,,369 3,,229 1 ,767 1,,907 1 ,677 604 412 577 834 1,041 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 1,658 3,,275 3;,598 4,,341 3 ,436 2 ,833 2 ,750 3 ,500 1 ,622 1,676 1,336 1,803 1 ,523 850 1 ,650 789 774 1,218 534 369 800 650 864 1,148 1,786 1,100 940 1,100 1,200 15 100 130 92 226 131 442 183 205 150 581 761 767 568 419 700 350 1,219 738 1,538 767 631 1,100 1,200 178 391 800 582 235 25 360 • 1,297 1,708 1,235 1,519 1,546 925 1,590 1971 - Sept. Apr. May June July Aug. Sept.e/ Oct. 1 -- • 17 n. a. n. a. Other issuers arc extractive, railroad and other transportation, real estate and finance, and commercial and 'otiher. Source: Securities and Exchange Commission. Quarterly supplements are available. T A B L E 6: L a r g e L o n g - t e r m P u b l i c S e c u r i t y I s s u e s for New C a p i t a l ( O t h e r t h a n U.S. T r e a s u r y ) 1 Nov. 6 through Nov. 10, 1972 ISSUER Corporates First Nat'l City Corp Arizona Pub Svc TYPE 2 Bonds Com stk AMOUNT (MILLIONS OF DOLLARS) 125.0 23.5 MATURITY 1980 COUPON RATE OR NET INTEREST COST 6.63 OFFERING YIELD 6.67 MOODY'S RATING T A B L E 6: ISSUER State and Local Penna, State of Collier County-Wide S/D, Fla. Connecticut, State of Jackson, Miss. Pennsylvania * L a r g e Long-term P u b l i c S e c u r i t y I s s u e s for N e w C a p i t a l ( c o n t i n u e d ) ( O t h e r than U.S. T r e a s u r y ) 1 TYPE G.O. G.O. G.O. G.O. G.O. 2 AMOUNT (MILLIONS OF DOLLARS) 145.,0 12.,6 98.,0 16,,4 145,.0 MATURITY 1975-2002 1974-1991 1975-1981 1973-1992 1975-2002 COUPON RATE OR NET INTEREST COST 4. 82 5.,03 3.,97 4..65 4,.82 | | it I-FER- MOODY'S I II.c RATING J YIELD 3.40-5.20 3.,40-5.20 3.,35-4.10 3,.00-5.20 3,.40-5.20 tfights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; 2 •<ev.-Ut. , revenue obligations secured only by income from public utilities; ' Rev.-Q.-lit., revenue bonds secured only by income from quasi-utilities; 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 and Development issues and non-quaranteed issues by Federal Agencies. FRASER 1 Digitized for A-l Baa-1 Aaa A-l A-l 10 T A B L E 7: F o r t h c o m i n g L a r g e Long-term P u b l i c S e c u r i t y O f f e r i n g s for New C a p i t a ! (Other t h a n U.S. T r e a s u r y ) 1 ISSUER Corporates Commonwealth Edison Fla. Pwr & Lt. Louisiana Pwr & Lt. Third National Corp *Texas Oil & Gas Southern Company Fla Pwr & Lt. Texas Industries Delmarva Pwr & Lt. First Tenn National Corp Michigan Bell Tele New England Pwr Tenneco Offshore Appalachian Pwr *South Carolina Elect & Gas Detroit Edison *Cameron Financial Corp Wells Fargo & Co. Kentucky Utilities Duke Pwr Pacific Gas & Elect Tampa Elect Arkansas Pwr & Lt. Arkansas Pwr & Lt. San Diego Gas & Elect *United Tele of Fla. Maine Yankee Atomic Gen'l Public Utilities Georgia Pwr Union Electric Duquesne Light Duquesne Light American Tele & Tele National Rural Util Coop Fin. *First Va. Bankshares Corp Great Am Mtge Englehard Minerals & Chem Co Zapata Exploration Co. TYPE Pref stk Bonds Bonds Bonds 1st mtge Com stk Pref stk Debs Com stk Debs Bonds Pref stk Bonds Bonds Com stk Pref stk Debs Bonds Bonds Bonds Pref stk Com stk Bonds Pref stk Com stk 1st mtge Pref stk Com stk Bonds Pref stk Bonds Com stk Bonds 1st mtge Bonds Debs Conv debs Conv debs AMOUNT (MILLIONS OF - DOLLARS) 50.0 50.0 25.0 25.0 30.0 150.0 60.0 15.0 20.0 25.0 125.0 15.0 90.0 70.0 25.0 75.0 40.0 75.0 35.5 75.0 50.0 15.0 15.0 20.0 27.0 15.0 15.0 30.0 150.0 55.0 40.0 35.0 500.0 50.0 25.0 25.0 50.0 25.0 APPROXIMATE DATE OF OFFERING Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. INDEF INDEF INDEF 13 14 14 14 14 14 15 16 16 19 20 21 21 28 29 29 29 30 4 5 5 5 6 6 6 7 7 7 12 13 14 14 T A B L E 7: F o r t h c o m i n g L a r g e Long-term P u b l i c S e c u r i t y O f f e r i n g s for New C a p i t a l ( O t h e r t h a n U.S. T r e a s u r y ) 1 (continued) A s o f N o V e n > ISSUER State and Local Columbus, Ohio Tyler, Texas Hartford, Connecticut *Boston, Mass, Dallas ISD, Texas Kent State University, Ohio Denver City and Co., Colo University of Calif Ohio Riverside, Calif Civic Auth ^Michigan New York State Housing Fin Agcy Miami, Fla * Philadelphia, Pa. *Anne Arundel Co., Md *Nassau Co., N.Y. Indianapolis, Ind., Airport Auth *Baltimore, Md. .Flat Rock, Mich. Dallas, Texas Hartford, Conn. HAA New York City Los Angeles Dwap Monroe Co., Mich * 1 2 TYPE AMOUNT (MILLIONS OF DOLLARS) 1 9 7 2 APPROXIMATE DATE OF OFFERING G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Ind dev rev G.O. G.O. 26.2 10.0 25.0 39.0 33.7 11.3 28.0 20.0 100.0 15.1 50.0 177.0 12.6 . 49.9 13.0 13.0 10.0 28.0 25.0 28.5 25.0 November 13 November 13 November 14 November 14 November 14 November 15 November 15 November 15 November 16 November 21 November 21 November 21 November 22 November 28 November 29 November 29 November 29 November November November November Bonds G.O. Rev. Rev. 282.5 300.0 116.2 57.0 December December December INDEF 6 6 13 Included in table for first time. Includes corporate and other issues of 515 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. 12 Table 8 STOCK PRICES AND VOLUME STOCK P R I C E S 1 ' TRADING VOLUME * DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX NYSE AMEX * 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00(12/29) 27.02 (1/8) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4/28) 26.68 (4/28) 797.97(11/23) 22.72 (1/4) 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - High Low 62.52 (10/3) 56.23 (1/3) 995.26 (11/10) 28.53 (4/14) 889.30 (1/3) 25.61 (1/3) 21.8 (11/10) 11.2 (9/8) 7.4 (3/10) 2.6 (9/8) 1972 - Oct. 6 13 20 27 60.03 59.10 59.77 60.60 945.36 930.46 942.81 946.42 25.95 25.80 25.72 25.89 15.3 11.8 14.2 16.6 3.1 2.6 2.9 3.3 Nov. 3 10 62.52 62.33 984.12 995.26 26.14 26.14 18.4 21.8 4.0 4.3 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week. (millions of shares). Trading is normally conducted for 5-1/2 hours per day arid 5 days per week, or In recent years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through: Day Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December'31, 1969 May 1, 1970 3. 12/31/65 = 5 0 4. Average dollar value of shares listed. 27-1/2 hours per week. periods, shown below: Hours/ Week TABLE 9: END OF PERIOE Security Credit CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES 13 NET CREDIT CUSTOMERS1 NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding: 1971 - July Aug. Sept. Oct. Nov. Dec. 4,790 4,850 4,930 4,950 4,910 5,400 2,420 2,430 2,430 2,410 2,400 2,440 7,210 7,280 7,360 7,360 7,310 7,840 1972 - Jan. Feb. Mar. Apr. May June July 5,700 6,180 6,620 7,010 7,200 7,510 7,660 2,490 2,510 2,520 2,530 2,560 2,650 2,700 8,190 8,690 9,140 9,540 9,760 10,160 10,360 1972 - July Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 30 10 -20 -10 40 100 70 80 -50 530 1972 - Jan. Feb. Mar. Apr. May June July 300 480 440 390 190 310 150 50 20 10 10 30 90 50 350 500 450, 400 220 400 200 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,210 2,200 2,100 2,160 2,170 2,220 2,488 2,542 2,512 2,459 2,330 2,231 2,245 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Change in Outstanding: 1 2 3 4 -- --' —- . -— -— " —— 230 -10 100 60 -10 50 268 54 -30 -53 -129 -99 14 -—— -* m —— __ —— -—— --- 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. NOTE: With the exception of bank loan data, figures are supplied by the New York 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 regulated or not. Series discontinued T A B L E 10: DATE 1969 1970 1971 S a v i n g s F l o w s a t Nonbank D e p o s i t a r y I n t e r m e d i a r i e s ($ millions) SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS NET NET SHARE CAPITAL REGULAR DEPOSITS 3 NEW NEW ANNUAL ANNUAL 2 MONEY NET MONEY2 GROWTH GROWTH NET 1 1 FLOW RATE RATE FLOW 2,549 4,517 9,623 1971 - July August September 415 300 793 1972 - July August 2./ September e/ 581 418 950 4.0 6.8 13.5 -763 936 5,678 -— --—— W t Seasonally Adjusted 4,068 3.1 -1,003 10,965 8.1 5,285 28,244 19.4 20,652 276 195 105 1,551 1,538 ' 2,670 -- 413 310 100 2,290 1,801 3,396 -- -- -- ./ TOTAL DEPOSITS i NET NEW ANNUAL NET MONEY 2 GROWTH 1 RATE FLOW 6,617 15,482 37,867 3.4 7.7 17.5 -1,766 6,231 26,330 1,463 1,052 1,091 1,966 1,409 3,463 1,739 1,247 1,196 2,159 1,708 1,494 2,871 2,219 4,346 2,572 2,018 1,594 Seasonally Adjusted 1972 - April May June July August 2/ September e/ 1 2 3 820 576 937 798 665 842 11.7 8.2 13.2 11.1 9.2 11.5 -— --— ) 2,704 1,814 2,849 3,432 2,232 2,843 17.6 11.7 18.2 21.5 13.7 17.3 __ -" ---- 3,524 2,390 3,786 4,230 2,897 3,685 15.8 10.5 16.6 18.3 12.3 15.5 Annual growth rate for monthly data is the annualized monthly percentage increase in deposiis. Net New Money is new deposits net of both withdrawals and interest. Data for SM.s are l«>v insured associations only, which represent 967, of industry total resources. Regular deposits at mutual savings hanks exclude items such as Christmas club and certain escrow accounts, which represent a vury small part of total deposits. SOURCE: National Association of Mutual Savings Banks and Federal Home Loan bank board. ---__ -- T A B L E 11: DATE TOTAL Mortgage Commitments at Selected Thrift Institutions OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Sea sonally Adjusted) Sept. Oct. Nov. Dec. >72 - Jan. Feb. Mar. Apr. May July Aug. r/ Sept. . 16.4 16.3 16.6 16.6 13.2 13.1 -13.2 13. lx 3.2 3.3 3.4 3.6 .07 .02 .20 .09 -. 07 -.05 .08 -. 06 . 14 .07 . 12 . 15 17.0 18.3 19.5 20.5 21.7 21. 7 22.0 22.7 23.3 13.3 14.2 15.2 16.0. 17.1 17.2 17.5 18.0 18.3 3.7 4.1 4.3 4.5 4.6 4.5 4.5 4.7 5.0 .30 1.34 1.19 .99. 1.22 .40 .33 .67 .59 .12 .97 .97 . 79 1.13 .48 .39 .42 .33 . 18 .37 .22 .20 .09 -.08 -.06 .25 .26 . . . . ... .. Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes are derived directly from unrounded outstandings levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. 16 T A B L E 12: DATE N e t C h a n g e in Mortgage H o l d i n g s 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS &| TOTAL 1 COMMERCIAL INSURANCE SAVINGS LOAN BANKS BANKS ASSOC. , COMPANIES 1 TOTAL INCLUDING FNMA-GNMA FNMA-GNMA Not Seasonally Ad lusted 1968 1969 1970 1971 1972 - May June July Aug. Sept. 23,781 24,074 21,736 41,647 21 ,273 19 ,699 16 ,827 39 ,259 6,677 5,404 2,462 9,940 4,958 5,724 4,872 5,931 n.a. 4 ,674 5 ,692 4 ,717 5 ,563 n.a. 1,500 . 1,600 1,500 1,600 1,400 2,787 2,682 1,845 3,938 454 585 380 553 n.a. 9,350 9,561 10,172 24,160 2,720 3,453 2,758 3,313 2,888 2,459 2,052 2,348 1,221 2,508 4,375 4,909 2,388 24 54 79 97 n.a. 284 50 155 368 n.a. Seasonally Adiusted 1971 - Aug. r / Sept." Oct. Nov. Dec. 4,270 4,021 3,747 3,745 4,323 3 ,758 3.,555 3,,357 3,,443 4,081 1,001 999 974 843 824 400 306 329 465 522 2,252 2,122 1,977 2,058 2,357 105 128 77 77 378 512 466 390 302 242 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 3,323 3,715 4,408 4,357 4,914 5,324 4,780 5,645 n.a. 3 3174 3,465 4,297 4,358 4 3539 5,205 4,636 5,292 n .a. 1,088 1,154 1,261 1,384 1,461 1,514 1,477 1,501 1,202 272 296 486 390 455 533 365 537 n.a. 1,813 2,042 2,571 2,506 2,571 3,067 2,693 3,174 2,889 1 -27 -21 78 52 91 101 80 n.a. 149 250 111 -1 375 119 144 353 n.a. 1 ~ Monthly data for commercial banks based on Federal Reserve estimates benchmarked 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 and, 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 1971. 17 T A B L E 13: N e t I n c r e a s e s in M o r t g a g e D e b t O u t s t a n d i n g Billions of dollars, SAAR 1- to 4- MULTIFAMILY FAMILY . MULTI-AND COMMERCIAL TOTAL RESIDENTIAL3 1967 - I II III IV 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 3.3 3.4 3.8 3.8 3.9 5.0 4.9 4.7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 1968 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 1 8 1.9 1969 - I II ' III IV 31.8 29.1 26.2 24.9 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7 4. 7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0 10.5 2.2 2.2 1. 7 1.4 1970 - I II III IV 20.6 22.9 29.1 31.3 14.2 16.9 21.8 22.5 9. 1 11.5 15.5 16.0 5.1 5.4 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2. 1 2.2 1971 - I II III IV 37.1 47.8 53.6 53.4 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 8.1 9.7 8.7 8.7 8.3 9.4 11.2 10.8 16.3 19.1 19.9 19.5 2.2 2.3 2.3 2.5 1972 - Ie lie 56. 7 57.7 41.5 42.8 32.2 33.4 9.3 9.4 13.0 12.8 22.2 22.3 2.2 2.1 QUARTER COMMERCIAL FARM farm mortgage debt by type o£ property, where not available, and interpolation. m y aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. T A B L E 14: WEEK ENDED FNMA Weekly ' ' A u c t i o n " R e s u l t s IMPLICIT YIELD2(per cent) COMMITMENTS IN $ MILLIONS | ACCEPTED 1-YEAR 1 1-YEARH 906906TOTAL TOTAL & OVER DAY M0NTH M0NTH & OVER DAY OFFERED July 10 24 134.6 123.9 92.1 113.0 92.1 113.0 Aug. 7 21 106.2 114.6 81.7 87.2 81.7 87.2 -- Sept. 5 18 220.6 295.9 151.2 148.1 151.2 148.1 -- 211.5 224.9 224.9 211.5 Oct. 2 16 30 352.8 271.2 186.4 224.9 224.9 -- -- -- -- -- -- -- -- -- 7.63 7.62 -- -- -- 7.63 7.65 -- -- —- -— __ -- 7.62 7.62 -- 7.69 7.72 7.72 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid Cor FNMA forward purchase commitments. Average secondary market yields 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 38 basis points fee paid by investors to servicers. 19 T A B L E 15: DATE SEASONALLY ADJUSTED ANNUAL KATE TOTAL |l-FAMILY 2 OR MORE! • .September October November December Private Housing Starts and Permits i 2,029 2,038 2,228 2,457 TOTAL 1 UNADJUSTED TYPE OF FINANCING FHA | VA ! OTHER -; ! 1,172 1,155 1,242 1,347 857 882 985 1,110 , ' 173.8 179.7 176.4 j. 152.1 1 48.3 38.5 47.2 85.4 J 8.7 8.1 9.1 7.4 116.8 133.1 120.1 59.3 BUILDING PERMITS ! ADJUSTED ANNUAL RATE)2 1,944 1,983 2,051 2,142 2,204 106.0 37.4 7,5 150.9 1,415 1,071 ! 2,487 January 2,056 117.8 8.0 27.8 153.6 2,682 1,325 1,357 February 2,007 155. 7 37.7 10.5 1,302 1,067 1 205.8 March 2,369 1,991 8.5 172.9 29.1 213.2 942 1,167 2,109 April 32.4 186.1 1,955 9.4 227.9 1,006 1,344 2,350 May 184.8 2,121 31.9 9.6 226.3 1,296 1,034 2,330 June 2,108 171.9 t 26.2 9.4 July r/ 205.0 929 1,289 2,218 2,237 9.8 30.3 188.0 j August r/ 228.2 1,057 1,396 2.453 2,252 162.6 j 974 1,378 29.3 8.9 September p/ 2,352 200.8 Total starts are Census estimates including farm for both permit-issuing and now-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 are Census estimates based on 13,000, or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of 'days per month, as well as other differences in timing and coverage. 2o T A B L E 16: DATE FHA MORTGAGES 30-year 2 M o r t g a g e a n d Bond Y i e l d s 1 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON C0NV. & VHA MORTGAGES 5 NEW ISSUE Aaa UTILITY 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.43 7.72 .37 .70 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.26 7.02 .52 -.36 1971 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 •11 - 7.38 7.28 .24 .31 1972 - Jan. Feb. Mar. Apr. May 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 . 11 . 14 .10 .10 .07 .06 . 11 . 10 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 .28 .12 .21 .05 .15 .22 . 16 .18 .16 July August September 1 Neither mortgage nor bond yields include allowance for servicing costs which are much 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. 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 and--beginning July 1961--30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. 3 Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. 4 See note for Table 1. 5 Yield spread equals conventional mortgage rate less FHA secondary market yield. 6 Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 21 T A B L E 17: / DATE i: C o n v e n t i o n a l Mortgage T e r m s 1 NEW HOMES EXISTING HOMER CON- FEES & CON- FEES & | LOAN/ LOAN/ TRACT CHARGES EFFEC- MATURITY PRICE LOAN TRACT CHARGES EFFEC- MATU- PRICK RATE (PER TIVE (PER (YEARS) RATIO AMT. RATE TIVE RITY RATIO (PER CENT) RATE (PER ($000) (PER CENT) RATE (YEARS) (PER CENT) CENT) CENT) 2 3 2 CENT) 3 LOAN AMT. ($ooo; 1971 July Aug. Sept. Oct. Nov. Dec. 7.51 7.60 7.67 7.68 7.65 7.62 0.90 0.84 0.97 0.97 0.87 0.93 7.66 7.74 7.83 7.84 7.79 7.77 26.3 26.2 25.8 26.4 26.7 26.6 74.5 73.9 75.3 75.5 75.4 74.5 27.1 26.5 25.9 26.3 27.3 26.5 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.76 0.78 0.79 0.79 0.78 7.63 7.71 7.76 7.75 7.69 7.64 24 .2 24 .5 24 .2 24 .1 24 .6 24 .6 74.5 74.2 74.5 74.2 74.6 74.6 23.2 23.5 22.5 22.9 23.2 23.9 7.62 7.45 7.38 7.38 7.40 7.41 7.43 7.45 7.42 0.95 1.02 0.84 0.83 0.84 0.85 0.83 0.86 0.86 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 7.56 26.5 27.0 27.2 • 27.2 27.2 27.2 27.2 27.5 . 27.3 75.0 76.5 76.2 76.0 76.2 76.5 77.0 77.5 77.6 27.6 27.8 28.2 28.5 28.5 27.8 28.2 27.9 27.7 7.45 7.35 7.31 7.30 7.33 7.36 7.37 7.39 7.40 0.82 7.58 0.79 7.48 0.77 7.44 0.78 7.42 0.77 7.46 0.78 7.49 0.83 7.50 0.81 7.52 0.82 7.53 24 .7 25,.4 25..1 25..2 25.,2 25.5 25. 6 26. 3 26. 1 74.7 75.8 75.6 75.3 75.4 76.1 76.2 76.5 76.6 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.7 1972 I i§ J*"Feb. Mar. Apr. May June July Aug. £/ Sept. l 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 owner builders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are avail ah Itsomewhat 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.
@FedFRASER