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Ciizit iJCUiiAl

DECONTROLLED

L.5.8 Confidential (F.R.)

AFTER SIX MONTHS
;

^
A p r i l 17,

r
/

0

3 ^ - A

1972

c,m

I
MARKET
DEVELOPMENTS

C a p i t a l M a r k e t s S e c t i o n , D i v i s i o n o f R e s e a r c h and S t a t i s t i c s ,
B o a r d of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y s t e m , W a s h i n g t o n , D. C.




- •

INDEX

3-5

"

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 M u n i c i p a l B o n d Markets

6-7

C a p i t a l Market Y i e l d s

8-13

C a p i t a l Market V o l u m e

14-17

S t o c k Market

18-33

M o r t g a g e Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

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:

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

1972 - M a r .

3
10
17
24
31

7.16
7.12
7.14
7.26
7.23

7.25
7.24
7.22
7.24
7.24

409
281
385
423
247

98
89
82
72
64

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

Apr.

7
14
21

7.33
7.42

7.25
7.28

422
469
375e

78
87

n.a.
n.a.

WEEK ENDING:

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

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
1
SOLD BY END 1 BONDS SCHEDULED
GROSS
OFFERINGS
OF WEEK
I WITHIN 28 DAYS

1972 - M a r .

3
10
17
24
31

5.00
4.90
5.00
5.00
5.05

5.29
5.18
5.32
5.34
5.40

481
640
542
420
326

Apr.

7
14
21

5.20
5.25

,5.49
5.54

378
676
570e

86
77
59
82
81
76
92

1,071
998
957
1,066
1,109
1,375
1,015

1 D e r i v e d 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 b o n d s
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 .
Mote:

Sw

footnotes to Table 3




T A B L E 2:

.
.
j

DATE
OFFERED
4/4
4/10
4/12
4/12
4/13

.
AMOUNT
(MIL. $)
20.
50.
40.
40.
40.

0
0
0
0
0

D e t a i l s on I n v e n t o r i e s

CORPORATE BONDS IN SYNDICATE END OK LATEST WEEK
'
~
"
T"
!ORIGINAL] RATING AND
ISSUER
1 COUPON|
YIELD jcALL PROTECTION

j
[

N. Amer C a r
N.W. B e l l T e l
P e o p l e s Gas L t . & Coke
Gen ' 1 T e l e of Pa
W a l t e r H e l l e r & Co

8.10
6 3/4
7 5/8
8.00
7 3/4

8., 1 0
• 6., 75
7., 6 0
7,. 9 5
7,. 8 2

Baa
Aaa
Aa
Baa
NR

N.
5
5
5
5

1 ESTIMATED PRO[
PORTION SOLD

C.
yrs
yrs
yrs
yrs

90%
80%
25%
25%
75%

\

OFFERED

DATE
| RELEXSED

4/4
4/6
4/10
4/12

4/13
4/11
4/14
4/13

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
IN YIELD CALL PROT. PORTION RELE/
YIELD
+15
50%
125.0
Pub Svc E & G Co.
7.50
Aa 5 y r s
7 1/2 '
+12
25%
35.0
7 3/4
7.63
A
5 yrs
Ark Pwr & L t 100.0
55%
N.W. B e l l
7.46
+12
Aaa 5 y r s
7 1/2
150.0
+10
A
5 yrs
75%
Con Ed of NY
7.90
7.90
AMOUNT

_

DATE
1972

- Mar.

17
24
31

Apr.

7
14

N.C.
1

I
{
INVENTORIES
MUNICIPALS
BLUE 'LIST
|
IN SYNDICATE
820
301
780
150
768
136
68Or
615

140
94

1

|
I
• 1

I

CORPORATES
IN SYNDICATE
85
172
190
94
64

- 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 in 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 ' " v . v e k ended F r i d a y , e x c e p t
which
FRASER i f da i 1 v a v e r a g e of t h r e e d a y s e n d e d W e d n e s d a y . A l l o t h e r f i u - . i r e s a r c a s of F r i d a y .

Digitized for


for l a t e s t

week

T A B L E 3:

DATE
- High
Low

NEW
CORPORATE
Aaa 1
9.30 (6/19)
7.68 (12/18)

High Grade Bond Y i e l d s

MOODY'S SEASONED

CORPORATE
Aaa 2
8.60 (7/3)
7.48 (12/21)

U . S . GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
7.55 (5/29)
6.17 (12/18)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
7.12 (5/29)
5.33 (12/11)

. - High
Low

8.23 (5/12)
6.76 (1/29)

7.71 (8/13)
7.06 (2/12)

6.51 (6/18)

6.23

5.69

4.97 (10/21)

! - High
Low

7.42 (4/14)
6.86 (1/14)

7.29 (2/11)
7.16 (1/21)

6.19 (4/14)
5,96 (1/14)

5.54 (4/13)
4.99 (1/13)

(3/23)

I - Mar.

24
31

7.26
7.23

7.24
7.24

6.08
6.10

5.34
5.40

, Apr.

7
14

' 7.33
7.42

7.25
7.28

6.13
6.19

5.49
5.54

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 . A v e r a g e t e r m of b o n d s i n c l u d e d i s
»
22-24 y e a r s .
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 in t h i s i n d e x
f a l l s midway b e t w e e n 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 M o o d y ' s I n vestors Service.
a" ! ( - - - H i g h s and lows a r e t 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




(6/24)

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 Government
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 )
k

GROSS PROCEEDS
CORPORATE1

PERIOD

STATE AND LOCAL 2

1972

1971

1970

!

1972

3 ,151
3 ,315
3 ,550e

3,115
3,000
6,075

2,636

1
I

3,539

1, 7 6 2
1 ,953
2 ,150e

April
May
June

4,042
3,271
4,375

3,909
3,389

July
August
September

4,147
2,532
3,768

2,768

1,989

1,348

2,274
3,518

1,903

1,359
1,758

October
November
December

3,387
3,704
3,673

January
February
March

1,802

3,170

|
i

]

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

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

1
2

1 0 , 016 e

,

1971

1970

2,732
1,851

2,258

1,340
1,214
1,555

1,891

1,647

2,167
2,013

996
1,085

2,098

3,777

1,728

1,924

4,182
3,980

2,264
2,068

1,748
2,190

7,977
10,468
8,560

4,109
3,728
4,465
5,862
7,837
12,302
18,164

12,190
11,688
10,447
10,764

11,939

6,841
6,081
5,990
6,060

23,844
34,325
45,089

18,445
27,005
38,944

12,912
18,902
24,962

S e c u r i t i e s and Exchange Commission e s t i m a t e s of g r o s s p r o c e e d s .
I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a e s t i m a t e s of p r i n c i p a l a m o u n t s .




T A B L E 5: 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 and I s s u e r
(In m i l l i o n s of d o l l a r s )

QUARTER
OR
MONTI!

TOTAL

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

- II
III
IV
1972 - I e /

11,688
10,447
10,764
10,016

6,546
4,725
5,135
5,323

1,758
1,641
2,439
1,723

3,384
4,079
3,193
2,967

215
114
133
n.a.

1971 - F e b .
Mar.

3,000
6,075

2,201
4,135

275
647

524
1,293

Apr.
May
June

4,042
3,271
4,375

2,116
2,148
2,282

507
491
760

July
Aug.
Sept,

4,147
2,532
3,768

1,331
1,428
1,966

.Oct.
Nov.
Dec.

3,387
3,704
3,673

1,942
2,003
1,190

1911

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS

1,351
652
767
456

3,130
2,202
2,453
1,404

2,910
2,651
3,041
2,342

896
2,263
1,053
1,457

4,753
3,331
4,164
4,815

3
38

168
557

661
2,417

1,069
1,452

683
532

587
1,675

1,419
633
.1,332

116
47
52

384
255
712

1,135
588
1,206

1,267
588
1,055

273
405
218

1,367
1,489
1,897

619
416
606

2,196
687
1,196

72
34
8

199
160
293

582
474
1,146

732
849
1,070

1,622
359
282

1,210
850
1,271

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

529
988
825

749
498
210

1,496
1,309
2.010

552
3,151
1,767
829
1972 - J a n .
59
254
378
3,315
371
1,906
1,038
13
194
Feb.
521
800
1,100
n.a.
180
Mar. e / 3 , 5 5 0
505
1,650
1 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 c o m m e r c i a l stnd o t h e r .
Source:
S e c u r i t i e s and E x c h a n g e C o m m i s s i o n . Q u a r t e r l y s u p p l e m e n t s a r e a v a i l able.




COMMUNICATIONS

T A B L E 6:

ISSUER
Corporates
P u b l i c Svc E l e c t & Gas
St. Regis Paper
S o . N a t u r a l Gas
M i s s i s s i p p i Power
N o r t h Am Car Corp
Browning-Ferris Ind. Inc.
F i r s t N a t ' 1 Bank of A r i z
P u b l i c Svc E l e c t & Gas
Safeway S t o r e s , Inc.
A r k a n s a s Pwr & L i g h t
A r k a n s a s Power & L i g h t
LCA C o r p
NW B e l l T e l e
N Bell Tele
W
Teneco Inc
C i n c i n n a t i Gas & E l e c t
M o n o g a h e l a Pwr
C o n s o l i d a t e d E d i s o n of NY
H e l l e r , W a l t e r E & Co
P e o p l e s Gas L t . & Coke
McCulloch Prop C r e d i t
G e n ' l T e l e Co of Pa




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 New C a p i t a l
(Other than U.S. T r e a s u r y ) 1

TYPE

2

AMOUNT
(MILLIONS
OF

COUPON
RATH OR
NET INTER KST COST

OFFERING
YI ELD

2002
1997
1979
2002
1992

7 1/2
4.88
6 7/8
7 5/8
8.10

7 1/2
4.88
6.95
7.63
8.10

——

- -

1997

7.70
8.08
7.40
7 3/4

7.22
7.96
7.40
7. 63

7 1/2
6 3/4
7.94
7.44
7 7/8
7.90 .
7.75
7 5/8
7 1/2
8.00

7. 46
6. 75
7.94
7.44
7.75
7. 90
7.82
7.60
7.50
7.95

MATURITY

DOLLARS)
1 s t mtge
Conv d e b s
Debs
Debs
Eq t r
Com s t k
Debs
Pref stk
Debs
1 s t mtge
Pref stk
Com s t k
Debs
Notes
Pref stk
pref stk
Debs
Debs
Debs
1 s t mtge
Debs
Debs

125.0
60.0
60.0
25.0
20.0
40.6
20.0
15.0
65.0
35.0
15.0
40.8
100.0
50.0
70.0
40.0
30.0
150.0
40.0
40.0
30.0
16.0

- -

1997
2002

MOODY'S
RAT INC
Aa
Ba
A
A
Baa
__

A
A
A

- __

__

2005
1979
- ——

2002
2002
1992
2002
1979
1997

Asa
Aaa

A
A
Aa
Baa

T A B L E 6:

L a r g e Long term P u b l i c Security I s s u e s for New Capital ( c o n t r v n d)
(Other than U.S. T r e a s u r y ) 1

r
ISSUER
S t a t e and L o c a l
Maine
O a k l a n d Co, Mich
R e v e r e , Mass
Alhambra R e d e v e l o p m e n t A g e n c y , G a l .
U n i v e r s i t i e s of S t a t e of T e x a s
N . Y . C . Ed. C o n s t . F u n d , N.Y.
B u f f a l o , N.Y.
Maine
V i l l a g e of H o d g e , L a .
V i l l a g e of Hodge, La
V i l l a g e of H o d g e , La
Pittsburgh
New York C i t y
U n i v e r s i t y of C a l i f o r n i a
D e l a w a r e R i v e r P o r t A u t h .. , N . J .
Massachusetts
Coral Gables, Fla.
Los A n g e l e s Co F i d C o n t r , . D i s t ,
Gal.
F a i r f a x Co, Va.
E r i e Co. , N.U.
P o r t l a n d Oreg
*
1
2

3

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

G.O.
G.O.
G.O.
Rev.
G.O.
Bonds
G.O.
G,0.
Rev.
Rev.
Rev.
G.O.
G.O.
Rev.
Rev.
G.O.
G.O.

13. 0
14. 2
12. 5
11. 2
58. 4
49. 2
35. 1
4. 3
16. 5
17.,5
31. ,0
11.. 4
255, .3
14,.9
100.. 0
90,. 0
21,.2 '

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

27 . 0
27 . 2
14 . 9
15 . 1

A p r i l 3 t h r u A p r i l 14.1972
COUPON
j
RATE OR
•>FFKR
MOODY'S
MATURITY i NET INTER
i;.(
RATING
| EST COST
YIELD 1
1973-1992
1973-2002
1973-1982
1975-1997
1973-1978
1974-2010
1972-1985
- -

1975-1990
1998
2007
1973-1992
1973-2012
1974-2011
2011
1973-2021
1973-1999
1973-2002
1973-1992 .
1974-1982
1974-1991

4.60
5.55
4.97
5.56
3.56
7.00
4.58
3.61
- • —
——

5.17
6.28
5.76
' 6.56
4.90
5.43
5.07
5.10
- -

4.48

2. , 7 5 - 5 . 60
3. , 0 0 - 6 . 35
3., 2 5 - 5 . 20
3. , 7 5 - 5 . 70
2.. 7 5 - 3 . 75
4,. 6 0 - 7 . 00
2,. 7 0 - 5 . 05
2,. 7 5 - 5 . 60
3,. 5 0 - 5 . 60
5,. 8 0
6,. 0 0
3 . 1 0 - 5 . 50
4 . 0 0 - 6 . 90
3 . 5 0 - 5 . 80
3 . 0 0 - 5 . 70
3 . 0 0 - 5 . 70
3 . 1 0 - 5 . ,50
3 . 2 0 - 5 . ,40
3 . 3 0 - 4 . ,60
n.a.

R i gh t s o f t 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 r v.i I o b l i g a t i o n ;
•<ev. - 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 ;
Rt 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 f i l i l i e s ; R e v . - S T . ,
r e v e n u e b o n d s 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 on 1v; R e v . - R e n t . , r e v e n u e
tmnds 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 g o v e r n m e n t 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 ind
Development i s s u e s and n o n - q u . i 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 .




Aaa
A-l
Baa-1
A
Aa
Baa
A
Aaa
A
A
A
A-l
Baa-1
A-l
' Baa
Aa
A
Aa
A
Aa
- - .

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 l
(Other than U.S. T r e a s u r y ) 1

ISSUER
Corporattes
Duke Power
L i g g e t t & Myers
C i t y I n v e s t i n g Co
Daylin Inc
L a r w i n Mtge I n v
Alabama Power
Alabama Power
Lone S t a r I n d u s t r i e s I n c .
Philadelphia Elect
C a r o l i n a Power & L t
Iowa E l e c t L t . & Pwr
Va Commonwealth B a n k s h a r e s
U . S . B a n c o r p RE& Mtge T r u s t
Transcontinental Pipeline
M i s s Power & L t .
Metropolitan Edison
P a c i f i c Power & L t
D e l m a r v a Pwr & L t
P e n n z o i l La, & Texas O f f s h o r e
Southwestern B e l l Tel
M e d i c a l Mtge I n v
So. C a l i f Edison
Gen'l Public U t i l i t i e s
B a i t Gas & E l e c t
K a n s a s C i t y Pwr & L t .
C o n s o l i d a t e d N a t Gas
G e n ' l " T e l e of t h e N
W
C e n t r a l 1 1 1 Pub Svc
G u l f Pwr
U t a h Pwr & L t .
U t a h Pwr & L t .
Pacific Lighting
N a t i o n a l F u e l Gas
Columbus & So Ohio E l e c t Co.
Columbus & So. Ohio E l e c t . Co.
C & P T e l e Go of Va.
G e n ' l E l e c t C r e d i t Corp
F i r s t P a . B a n k i n g & T r u s t Co.
M o b i l O i l Corp
New E n g l a n d M u t u a l L i f e I n s . Co.
I n s t i t u t i o n a l Investors Trust




TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

Bonds
100.0
Debs
50.0
Debs
25.0
Debs
25.0
Debs
25.0
Debs
100.0
Pref stk
20.0
Debs
50.0
Pref stk
75.0
Debs
100.0
1 s t mtge
30.0
Debs
15.0
Debs
25.0
1 s t mtge
75.0
1 s t mtge
15.0
1 s t mtge
26.0
Com s t k
35.0
Com s t k
20.0
Conv d e b s
130.0
Debs
250.0
Debs
50.0
Pref s t k
75.,0
Com s t k ( r t s )
72.0
Com s t k
45.0
Debs
30.0
Debs
50.0
1 s t mtge
20.0
Debs
30.0
Bonds
22.0
Bonds
25.0
Com s t k
25.0
Pref stk
30.0
Debs
23.5
Com s t k
17.0
Bonds
25.0
Debs
100.0
Bonds
75.0
Bonds
30.0
Debs
300.0
Debs
50.0
Conv d e b s
30.0

APPROXIMATE DATE
OF OFFERING

April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
INDEF
INDEF
INDEF

18
18
18
18
18
19
19
19
20
24
25
25
25
26
26
26
26
27
2
3
3
4
8
10
11
11
15
16
17
17
17
18
18
18
22

11
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
(Other than U.S. T r e a s u r y ) 1
(continued)
A s
o f
A p r i l
1 7 #

ISSUER
S t a t e and L o c a l
San J o a q u i n D e l t a JCD, C a l
Memphis, Term
C o n n e c t i c u t , S t a t e of
O a k l a n d Co, Mich
Mississippi
U n i v e r s i t i e s o f S t a t e of T e x a s
S a l t R i v e r P r o j e c t A g r i c Imp
and Power D i s t . , A r i z .
Wayne Co S t a d i u m Auth
E a s t B a t o n Rouge P a r i s h C o n s o l i d a t e d S/D # 1 , L a .
P r i n c e G e o r g e s Co, Md
New Y o r k , S t a t e of
A u s t i n ISD, Texas
San A n t i o n i o , T e x a s
Texas
Hampton Rds S a n i t . D i s t . , Va.
Dallas, Texas.,
Los A n g e l e s DWAP

1
2

1 9 7 2

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.

11.9
25.0
105,0
10.1
30.0
10.3

April
April
April
April
April
April

18
18
18
18
19
19

E l e c Rev
G.O.

49.0
126.0

April
April

19
19

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

12.0
34.0
147.0
21.0
15.0

April
April
April
April
April
April
May
May
June

25
25
26
26
27
27
9
24
7

TYPE

—

12.0
35.0
40.0

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 515 m i l l i o n and o v 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 g o v e r n m e n t 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 .




STOCK PRICES AND VOLUME
STOCK PRICES

N Y S E INDEX

3

1

D.J INDUSTRIALS

TRADING VOLUME

AMEX

2

4

1970~ - High
Low

52,.30 ( 1 / 5 )
" 842. 0 0 ( 1 2 / 2 9 ) 27,. 0 2 ( 1 / 8 ) ' 18..5 ( 1 2 / 4 )
.
37., 6 9 ( 5 / 2 6 )
6 3 1 . ,16 ( 5 / 2 6 ) 19,.36 ( 5 / 2 7 ) ' 7.,8 ( 8 / 1 4 )

7.. 1 ( 1 / 2 )
1..8 ( 8 / 1 4 )

1971 - High
Low

57..76 ( 4 / 2 8 )
950. 82 ( 4 / 2 8 ) 26,. 6 8 ( 4 / 2 8 ) ! 22.,1 ( 2 / 1 2 )
!
' 48,. 7 3 ( 1 / 4 )
: 797. 9 7 ( 1 1 / 2 3 ) 22..72 d / 4 )
11.,0 ( 9 / 1 7 )

6..7 ( 2 / 5 )
2.,7 ( 8 / 1 3 )
7,,4 ( 3 / 1 0 )
4,.0 ( 3 / 3 1 )

1972 - High
Low

61..28 ( 3 / 1 4 )
56.,23 ( 1 / 3 )

967. 72 ( 4 / 1 4 ) : 28. 53 ( 4 / 1 4 ) ; 2 i . ,2 ( 3 / 2 4 )
8 8 9 . 30 ( 1 / 3 )
25. , 6 1 ( 1 / 3 )
14..0 ( 3 / 3 1 )

1972 - M a r . 24
31

u0. 39
5 q . 68

939. 87
940. 70

28. 32
27. 87

21. 2
14. 0

4. 8
4. 0

61.08
61.28

962.60
: 967.72

28.31
28.53

19.8
19.9

6.0
6.3

Apr.

7
14

F i g u r e s o t h e r Chan
H i g h s and lows a r e

or t h e y e a r and a r e n e t n e c e s s a r i

NYSE i s t h e New Y„-r . S t o c k E x c h a n g e ; AMEX i s t h e Amer:
a l l y a v e r a g e d t o r Che e n t i r e week.
T r a d i n g i s n o r m a l l y conducCed t o r 5 - 1 ' 2 h o u r s p e r day
e v e r a b b r e v i a c e d t r a d i n g Co che

J u l y i , 1969
December 31, 1969
May 1, 1970
3.

12/31/65 =

4.

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




n Stock Exchange.
( m i l l i o n s of s h a r e s ) .
d 5 d a y s p e r week, o r
and o v e r Che t i m e
Hours/
Days/
Day
Week

2 7 - 1 2 h o u r s p e r we,
p e r i o d s , shown b e l o i
Hours/
Week

T A B L E 9: Security. Credit

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS ;"~1 " BANK5. ^ ] TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

::i:r c . ^ D i i
CUSTOMERS' NET : EXTENDED F-Y
FREE CREDIT
T.S AND
BALANCES
j ^DEALERS 3

Outstanding
1971 - F e b .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
;
Dec.

4 ,090
4 ,300
4 ,530
4 ,620
4.,720
4.,790
4.,850
4.,930
4.,950
4. ,910
5 j,400

2 ,330
2 ,360
2 ,340
2 ,340
2 ,390
2 ,420
2,,430
2.,430
2,,410
2.,400
2.,440

6 ,420
6 ,660
6 ,870
6 ,960
7:,110
7 ,210
7.,280
7.,360
7.,360
7.,310
7.,840

$
(4)
(4)
(4)
(4)
(4)

2,160
2,170
2,220

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

Jan.
Feb.

5 , ,700
6, 180

2,

2;
,490
,510

8 , ,190
8 j,690

(4)
(4)

2,488
2,542

(4)
(4)

30
30
-20

120
240
210
90
150
100
70
80

(4)
(4)
(4)
(4)

2,743
2,798
2,660
2,550
2,440
2,210
2,200

2,100

Change i n
Outstanding:
1971 - F e b .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

90
210
230
90
100
70
60
80
20
-40
490

-20
-10
40

1972 - J a n .
Feb.

300
480

20

50
30

10

50

291
55
-138
-110
110
230
-10

-50
530

100
60
10
50

350
500

^268
54

Margin d e b t , a s r e p o r t e d by t h e Now York S t o c k Exchange. A l t h o u g h man i u di
unt.il Mai - h 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 ar.ioun
loan;-,, 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 .
"Bink l o a n s t o o t h e r s than 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 or' c a r : •
l i l i e s o t h e r than U.S. governments
1 hi 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 ' r.ei
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 i n o k e r
d e a l e r s t o t h e n o n f i n a n c i a l put: l i e .
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 e s u p p l i e d by t he Nu
Stock 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
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 r u
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 or c a r r y i n g any' seen
r e g u l a t e d or n o t .
Series discontinued.
Changes i n s e r i e s .
FRASER

Digitized for


T A B L E 10:

Savings F l o w s at Nonbank Depositary Intermediaries

($ m i l l i o n s )
i

1

SAVINGS (
SHARE CAPITAL
ANNUAL
NET
GROWTH
FLOW
RATE 1
1

DATE

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
NET
GROWTH
MONEY2
1
FLOW
RATE

NET
NEW
MONEY 2

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY

2

Not S e a s o n a l l y A d j u s t e d
1969
1970
1971

2,549
4,517
9,623

4.0
6.8
13.5

1971 - J a n u a r y
February
March

791
906
1,604

—

1972 - J a n u a r y
February £/
/ March e /

856
910
1,550

—
—

- -

-763
936
5,678

4,068 /
10,965
28,244

3.1
8.1
19.4

637
811
955

2,609
2,444
4,108

- -

716
n. a.
n. a.

3,266
2,800
4,200

—
—

- —

- —

\
\

3.4
7.7
17.5

-1,766
6,231
26,330

-1,003
5,285
20,652

6,617
15,482
37,867

2,476
2,340
2,627

3,383
3,350
5,712

- -

3,113
3,151
3,582

3,117
2,684
n.a.

4,122
3,710
5,750

—

3,833
n.a. n.a.

- -

Seasonally Adjusted
1971 - A u g u s t
September
October
November
December

539
683
599
659
836

8.4
10.5
. 9.1
10.0
12.5

- - - —
—

1,529
2,125
2,071
1,710
2,031

11.2
15.4
14.8
12.1
14.2

- - - —
—

2,068
2,808
2,670
2,369
2,867

10.3
13.8
13.0
11.4
13.7

——
*. —
5,066
23.9
28.4
4,118
948
14.1
1972 - J a n u a r y £ /
——
17.4
3,777
19.8
2,937
840
12.3
F e b r u a r y j>/
18.8
4,136
19.9
3,004
16.4
1.132
March e /
1 A n n u a l 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 m o n t h l y 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 b a n k s e x c l u d e i t e m s s u c h a s C h r i s t i n a s c l u b and c e r t a i n
e s c r o w 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 .




- - - - -

- -

T A B L E 11:

DATE

TOTAL

Mortgage Commitments a t S e l e c t e d T h r i f t I n s t i t u t i o n s

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

1
]
TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

( B i l l i o n s of D o l l a r s , Sea s o n a l l y A d j u si t e d )
11.3
12.6
13.7
14.5
15.9
16.2
16.3
16.4
16.3
16.6
16.6
17.0
18.3

'

9.0
10.1
11.0
11.6
12.8
13.1
13.2
13.2
13.1
13.2
13.1

2.3
2.5
2.7
3.0
3.1
3.1
3.1
3.2
3.3
3.4
3.6

.76
1.28
1.15
.90
1.31
.30
.12
.08

.60
1.11
.90
.56
1.26
.29
.14
-.07

.02
.20
.09

-.05
.08
-.06

.16
.17
.25
.34
.05
.01
-.01
.14
.07
.12
.15

13.3
14.2

3.7
4.1

.30
1.34

.12
.97

.18
.37

B a s e d 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 Ranks A s s o c i a t i o n s of New Y o r k 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 n o n r e s i d e n t i a l c o m m i t m e n t s . S&L
commitments i n c l u d e l o a n s i n p r o c e s s .
New 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 u n r o u n d e d 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 .




16

T A B L E 12:

DATE

1968
1969
1970
1971p

TOTAL
INCLUDING TOTAL
FN MA-GN M
A

Net C h a n g e in Mortgage H o l d i n g s

1

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
COMMERCIAL
SAVINGS
LOAN
BANKS
COMPANIES
BANKS
ASSOC.
Not S e a s o n a l l y Ad i u s t e d

FXMA-GNNA

23,796
23,867
21,945
41,611

21,288
19,492
17,035
39,223

6,677
5,404
2,462
9,564

2,798
2,533
1,956
4,212

9,344
9,572
:1 0 , 2 5 4
24,226

2,469
1,983
2,363
1,221

2,508
4,375
4,910
2,388

Nov.
Dec.

3,593
4,616

3,246
4,327

800
700

473
596

1,941
2,338

39
693

347
289

1972 -• J a n .
Feb.

2,427
n.a.

2,248
n.a.

600
500

274
n.a.

1,453
1,737

-79

179

1971

1

Seasonally Adlusted
1971 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,033
2,184
3,005
3,057
3,300
4,136
4,186
4,168
3,924
3,657
3,647
4,325

2,043
2,219
2,983
3,113
3,260
3,935
3,878
3,656
3,458
3,267
3,345
4,083

1972 - J a n .
Feb.

3,023

2,874

1

394
475
690
685
864
1,219
977
901
902
884
752
826
788
654

200
217
401
293
, 318
386
374
400
306
329
465
522

1,348
1,426
1,801
2,082
2,036
2,309
2,455
2,252
2,122
1,977
2,058
2,357

272

1,813
2,003

101
101
91
53
42
21
; 72
130
128
77
77
378
.

-10
-35
22
-56
40
201
308
512
466
390
302
242

1

149

M o n t h l y d a t a f o r c o m m e r c i a l b a n k s b a s e d 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 a s a v a i l a b l e .
Other data
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 i n g a s 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 A s s n .
of M u t u a l S a v i n g s B a n k s , 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 A u g u s t 1968, t h 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 , and t h e r e a l t e r by FNMA and t h e Government 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 .
Data f o r m u t u a l
s a v i n g s b a n k s and f o r L i f e I n s u r a n c e c o m p a n i e s 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 m i n o r 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 m o n t h l y s e r i e s .
A l t o g e t h e r , t h e s e groups
a c c o u n t e d f o r 86 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 1 9 7 1 ,




17

T A B L E 13: Net I n c r e a s e s in Mortgage Debt O u t s t a n d i n g

B i l l i o n s of d o l l a r s ,

COMMERCIAL

7.0

3.3
3.4
3.8
3.8

3.9
5.0
4.9
4.7

7.2
8.4
8.8
8.5

2.8

3.2
3.2
3.5
3.9

6.0
6.6

6.4

9.5
9.2

2.3
2.2

7.3

11.2

1.9

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

9.1
11.5
15.5

22.5

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

26.6

18.5
26.4
30.7
31.0

8.1

8.3
9.4

16.3.
19.1
20.7
18.7

2.2
2.3
2.3
2.4

TOTAL

RESIDENTIAL
10.3
14.0
18.9
19.7

26.3
27.2

28.1
26.4
25.8
29.4

15.1
15.9

16.2

17.4

15.0
13.9
16.3

20.2
23.6

20.6

14.2
16.9

37.1
47.8
53.-7
52.1

10.6

19.4

18.2

31.8
29.1
26.2
24.9
22.9
29.1
31.3

2

MULTIFAMILY

16.0
20.8

QUARTER

SAAR

1- to 4FAMILY

21.5
19.0

18.2

21.8

36.1
40.6
40.4

19.2

16.8
14.4
13.0

9.7
9.9
9.5

10.8
9.3

MULTI-AND
COMMERCIAL

10.1

FARM

1.8
1.8
2.5

1.8

1 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 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 , Nat 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 B a n k s , 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 Mortgage 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 farm 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 , w h e r e 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 m a i n l y by F e d e r a l R e s e r v e .
2 May d i f f e r somewnat trom r e l a t e d f l o w of f u n d s s e r i e s m a i n l y b e c a u s e of more
a g g r e g a t i v e t y p e of s e a s o n a l a d j u s t m e n t .
3 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 n o n f a r m 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 c o m b i n e d .




/

TABLE 14: FNMA
j
WEEK
ENDED
1
15
29

126.0
145.3
210.6

56.4
102.0
101.1

232.5
222.7

70.2
148.1

70.2
148.1

10
24

136.9
103.6

72.9
54.9

7
21

88.7
68.6

6
20

86.9
202.9

__

56.4
102.0
101.1

13
27

Nov.

"Auction" Results

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD l ( p c r c e n t )
ACCEPTED
4
1-YEARil
1-YEAR
TOTAL
TOTAL
4
1 66& OVER
Mo. | MONTH & OVER Months
OFFERED
MONTH

Dec.

Jan.

Feb.

Mar.
April.

1.

——
- -

7.77
7.70
7.66

--

7.62
- -

7.62

--

72.9
54.9

- -

7.61
7.61

--

63.9
44.8

63.9
44.8

—

7.61
7.61

50.6
86.2

50.6
86.2

- -

7.56
7.54

--

—

——
7.56
3
1 258.8
P-78.5 _ _ 1 7 8 . 5
__
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 .

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 38 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 servicers.




19
T A B L E 15:

P r i v a t e Housing S t a r t s and P e r m i t s

1
DATE

Feb.
Mar.
Apr.
May
June
July
Aug.
Sept,
Oct.
Nov.

Dec.
1972

Jan.
Feb.

£/
£/
£/

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
! TYPE OF FINANCING
!FHA | VA |
OTHER
!

i 1,794
1,938
1,951
2,046
2,008
2,091
2,219
2,029
2,038
2,228
2,457

1,005
1,080
1,122
1,152
1,150
1,162
1,198
1,172
1,155
1,242
1,347

929
1,021
857
882
985
1 ;, 1 1 0

167.9
201.1
198.5
193.8
194.3
204.5
173.8
179.7
172.2
149.6

2,471
2,678

1,410
1,315

1,, 1 6 2
1,, 3 6 3

148.4
151.5

789
858
829
894
858

!

STARTS

,
I
|

102.2

27.3
33.5
44.6
40.7
46.1
42.9
45.8
48.3
38.5
47.2
85.4
37.4

n.a.

4.7
6.9
8.5
8.4
9.3
9.2

8.1
9.1
7.4

70 . 2
127 . 6
148,. 0
1 4 9 .. 4
1 3 8 .. 4
1 4 1 .. 1
1 4 7 ., 0
116. 8
133. 1
115. 9
56. 8

7.5
8.0

n.a.

9.4
8.7

198. 6

'
;
j

|
1

!
;
'

!

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,563
1,627
1,638
1,927
1,849
2,052
2,006
1,900
2,173
1,952
2,292
2,105
2,112

i
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
n o i . - 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 when e x c a v a t i o n b e g i n s ; a l l u n i t s
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 .
FtiA 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 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
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 , which 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
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 or 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 having a l o c a l b u i l d i n g p e r m i t system in 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 , or
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 perm 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 .




20

T A B L E 16:

FiiA
MORTGAGES
DATE

'
30-year

1
•
1
j
. -i

Mortgage and Bond Y i e l d s

CONVENT10NAL
MORTGAGES
2 8.o0

SPREAD BETWEEN YIELDS
ON C0NV. &
FHA MORTGAGES 5

1

'!

NEW
1 SPREAD BETWEEN
Aaa CORYIELDS ON NEW
! P0RATE ; CORPORATE BONDS
AND
|
BONDS |
:
FHA MORTGAGES 6
L . . . V
J

8.30

-.10
-.74

. 9.11
7.80

.99
.01

7.97
7.32

7.95
7.55

.28
-.19

8.01
7.24

.50
-.36

7.97
7.92
7.84

7.80
7.85
7.85

-.17
-.07
.01

7.96
7.65
7.44

.01
.27
.40

Oct.
Nov.
Dec.

7.75
7.62
7.59

7.80
7.75
7.70

.05
.13
,11

7.29
7.19
7.09

.46
.43
.50

1972 - J a n .
Feb.

7.49
7.46

.11
.14

7.07
7.16

.42
.30

1970 - High
L

w

. 1 9 7 1 - High
Low
1971 - J u l y
Aug.
Sept.

9.29
8.40

N e i t h e r m o r t g a g e n o r bond y i e l d s i n c l u d e a l l o w a n c e f o r s e r v i c i n g c o s t s which a r e
much h i g h e r f o r m o r t g a g e s t h a n f o r b o n d s .
G e n e r a l l y , b o n d s pay i n t e r e s t s e m i a n n u a l l y ; m o r t g a g e s , m o n t h l y . M o r t g a g e y i e l d s , i f computed a s e q u i v a l e n t t o
a s e m i - a n n u a l i n t e r e s t i n v e s t m e n t , would be s l i g h t l y h i g h e r t h a n g i v e n in t h e
table.
2 . B a s e d on F H A - f i e l d - o f f i c e o p i n i o n s a b o u t a v e r a g e b i d p r i c e s i n t h e p r i v a t e
s e c o n d a r y m a r k e t f o r new-home m o r t g a g e s f o r i m m e d i a t e d e l i v e r y .
D a t a shown
. a r e f o r 3 0 - y e a r m o r t g a g e s w i t h minimum d o w n p a y m e n t s , and w e i g h t e d by p r o b a b l e
volume of t r a n s a c t i o n s .
Y i e l d s computed by FHA, a s s u m i n g p r e p a y m e n t p e r i o d
of 15 y e a r s f o r 3 0 - y e a r m o r t g a g e s .
3 Based on F H A - f i e l d - o f f i c e o p i n i o n on t y p i c a l c o n t r a c t i n t e r e s t r a t e s ( r o u n d e d ) or
c o n v e n t i o n a l f i r s t m o r t g a g e s p r e v a i l i n g i n t h e m a r k e t a r e a s of i n s u r i n g
offices.
4 See n o t e f o r T a b l e 1.
5 Yield spread equals conventional mortgage r a t e
l e s s FHA s e c o n d a r y m a r k e t y i e l d .
6 Y i e l d s p r e a d e q u a l s FHA s e c o n d a r y m a r k e t y i e l d l e s s new Aaa c o r p o r a t e bond
yield.
1




21
T A B L E 17. Conventional Mortgage Terms

DATE

N W HOMES
E
CON- FEES &
r EFFEC-I MATURITY
TRACT CHARGES
RATE
(PER
TIVE I (YEARS)
CENT) RATE
(PER
CENT)
2
. 3
j

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4

1

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)
4

1971

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

7.74
7.52
7.37
7.36
7.38
7.51
7.60
7.67
7.68
7.65
7.62

1.00
0.83
0.73
0.71
0.74
0.90
0.84
0.97
0.97
0.87
0.93

7.91
7.66
7.49
7.47
7.50
7.66
7.74
7.83
7.84
7.79
7.77

26.2
25.9
26.3
26.1
26.3
26.3
26.2
25.8
26.4
26.7
26.6

73 9
7 3 ,. 7
7 3 ,. 6
7 4 ,. 0
7 3 ,. 7
7 4 ,. 5
7 3 ,, 9
75,. 3
7 5 ., 5
75,, 4
7 4 ., 5

26.2
26.0
26.2
26.7
27.2
. 27.1
26.5
25.9
26.3
27.3
26.5

7.. 6 7
7 .. 4 7
7 ,. 3 4
7 .. 3 3
7 .. 3 8
7 ,. 5 0
7 ., 5 8
7 ., 6 3
7 C, 6 2
7 ., 56
7 ., 5 1

0.79
0.77
0.75
0.71
0.74
0.75
0.76
0.78
0.79
0.79
0.78

7 .80
7 .60
7 .47
7 .45
7, . 5 0
7, . 6 3
7,. 7 1
7,. 7 6
7, . 7 5
7 ,. 6 9
7 ,. 6 4

24.0
24.1
24.2
24.0
24.3
24.2
24.5
24.2
24.1
24.6
24.6

73.1
73.5
73.6
73.2
73.9
74.5
74.2
74.5
74.2
74.6
74.6

22.5
23.0
23.1
23.3
28.3
23.2
23.5
22.5
22.9
23.2
23.9

7.62
7.43

0.95
1.01

7.78
7.60

26.5
27.0

7 5 .,0
7 6 .,4

27.6
27.8

7. 45
7. 37

0.82
0.75

7 .. 5 8
7 ., 4 9

24.7
25.0

74.7
75.5

24.1
24.3

1972

Jan.
Feb.

Compiled by F e d e r a l Home Loan Bank Board i n c o o p e r a t i o n w i t h 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 . Data a r e w e i g h t e d a v e r a g e s b a s e d on p r o b a b i l i t y sample s u r v e y of c h a r a c t e r i s t i c s of c o n v e n t i o n a l f i r s t m o r t g a g e s o r i g i n a t e d by m a j o r i n s t i t u t i o n a l l e n d e r
g r o u p s ( i n c l u d i n g m o r t g a g e c o m p a n i e s ) f o r p u r c h a s e of s i n g l e f a m i l y homes. Data e x clude loans f o r r e f i n a n c i n g , r e c o n d i t i o n i n g or modernization; c o n s t r u c t i o n loans to
h o m e - b u i l d e r s ; and permanent l o a n s which a r e c o u p l e d w i t h c o n s t r u c t i o n l o a n s t o ownerbuilders.
R e l a t e d s e r i e s on c o n v e n t i o n a l m o r t g a g e r a t e s o n l y , b a s e d on unweighted
o p i n i o n s of f i e l d - o f f i c e d i r e c t o r s of t h e F e d e r a l Housing A d m i n i s t r a t i o n , a r e a v a i l a b l e
somewhat s o o n e r t h a n t h e r e s u l t s of t h e FHLBB-FDIC s u r v e y , and a r e i n c l u d e d - i n t h e c a s e
of new home m o r t g a g e r a t e s — i n T a b l e 16.
Fees and c h a r g e s - - e x p r e s s e d as a p e r c e n t a g e of t h e p r i n c i p a l m o r t g a g e amount — i n c l u d e
l o a n c o m m i s s i o n s , f e e s , d i s c o u n t s , and o t h e r c h a r g e s which p r o v i d e added income t o t h e
l e n d e r and a r e p a i d by t h e b o r r o w e r . They e x c l u d e any c l o s i n g c o s t s r e l a t e d s o l e l y t o
t r a n s f e r of p r o p e r t y o w n e r s h i p .
I n c l u d e s f e e s & c h a r g e s a m o r t i z e d o v e r a 10 y e a r p e r i o d i n a d d i t i o n t o t h e c o n t r a c t
interest rate.
D e r i v e d by FRB.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102