Full text of H.16 Capital Market Developments : April 9, 1973

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

DECONTBOLLED AFTER SIX MOUTHS
L.5.8 Confidential (F.R.)

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
Capital Market Yields
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1973 - Mar.

2
9
16
23
30

Apr.

6
13

WEEK ENDING:

1973 - Mar.

Apr.

1

YIELDS
MOODY'S
SEASONED
NEW ISSUE '
7.25
7.27
7.29
7.31

--w

7.52
7.45
—

7.51

MOODY'S
NEW ISSUE
Aaa

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
20
234
270
465
110

--

.

139
60e

7.27

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

100
88
84
100
94

n.a.
n • 3. •
n. 3. *

90

MUNICIPAL BOND MARKET
VOLUME 2
|
|
PER CENT
!
GROSS
SOLD BY END
J BONDS SCHEDULED
OFFERINGS
OF WEEK
| WITHIN 28 DAYS

2
9 .
16
23
30

5.00
5.05
5.10
5.10
5.10

5.22
5.27
5.34
5.35
5.26

366
483
631
703
399

77
78
82
81
94

1,552
1,419
1,344
1,043
777

6
13

5.05

5.22

304
647e

90

941
1,020 ;

-

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).

2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




;

TABLE 2: Details on Inventories
DATK
OFFERED

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

AMOUNT'
(MIL. $)

4/5

25.0

DATE
OFFERED | RELE\SED

Continental Bank

7.50

7.61

—

10 yrs.

ESTIMATED PROPORTION SOLD
85%

CORPORA!'E BONDS RELEASED FROM SYNDICATE DURING LATEST tiF.F.K
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

NONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1973 - Mar.

Apr.

2
9
16
23
30
6

789
746
740
67C
587r
586

104
126
142
168
63
55

CORPORATES
IN SYNDICATE
0
27
44
12
6
15e

N.C. - No call protection.
A H figures in millions of dollars. Blue List Is daily average for week coded Friday, except for latest '..cc-k
vhich If daily average of three days endvd Wednesday. All other figures arc as of Friday.




TABLE 3: High Grade Bond Yields

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

1971 - High
Low

8.26 (7/30)
7.02 (2/5)

7.71 (8/12)
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)
6.99 (11/24)

7.36 (4/28)

6.19 (4/14)

7.05 (12/8)

5.74 (11/17)

5.54 (4/13)
4.96 (10/21)

1973 - High
' Low

7.52 (3/16)
7.29 (1/12)

7.31 (3/30)

6.93 (3/16)

7.11 (1/5)

6.42 (1/5)

5.35 (3/22)
5.03 (1/12)

7.25
7.27
7.29
7.31
7.31

6.90
6.91 •
6.93
6.92
6.88

5.22
5.27
5.34
5.35
5.26

7.27

6.87

5.22

DATE

1973 - Mar.

Apr.
1

2
9
16
23
30
6

--

7.52
7.45
7.51

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may,be on different dates
for different series.




TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE

PERIOD
1973

1

STATE AND LOCAL 2

1972

1971

3,205
3,369
3,229

3,115
3,000
6,075

April
May
June

3,275
3,598
4,341

4,042
3,300
4,375

July
August
September

3,582
2,893
2,720

4,147
2,532
3,768

October
November
December

3,791
3,377
3,396

3,387
3,704
3,673

9,803
11,214
9,195
10,564

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

21,017
30,212
40,776

23,844
34,325
45,089

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1
2

2,235
2,175e

I

1973

1972

1971

1,902
1,445
2,270

1,776
2,005
2,239

2,732
1,851
2,258

1,989
2,017
2,270

1,891
2,167
2,013

1,805
1,966
1,726

1,989
1,903
2,098

2,200
1,861
1,794

1,728
2,264
2,068

6,020
6,276
5,494
5,855

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

12,296
17,790
23,645

12,812
18,902
24,962

j
j
j

5,617

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.




i

-

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
MEMO:
BONDS
PUBLICLY 1 PRIVATELY PFD.
ISSUES INCLUDED
MFG.
STOCK
PLACED
FOREIGN | CONVERTIBLE
OFFERED

GROSS PROCEEDS BY
TYPE OF ISSUER

OUARTKR
OR
MONTH

TOTAL

1972 - I
II
III
IV

9,805
11,214
9,195
10,564

5, 361
4, 634
4, 192
4, 158

1,593
2,781
1,867
3,147

2,851
3,798
3,136
3,258

74
245
57
245

511
449
836
428

1,,525
2;,109
1.,629
1.,398

2,261
3,495
2,680
2,934

1,,476
1,,369
856
1.,079

4,541
4,240
4,030
5,151

1972 - Jan.
Feb.
Mar.

3,205
3,369
3,229

1,,767
1,,907
1,,677

604
412
57?

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

Apr.
May
June

3,275
3,598
4,341

1,,622
1,,676
1,,336

789
744
1,218

864
1,148
1,786

15
100
130

92
226
131

581
761
767

1,219
738
1,538

178
391
800

1,297
1,708
1,235

July
Aug.
Sept.

3,582
2,893
2,720

1:,807
1,,523
863

657
421
789

1,118
948
1,070

3
17
37

450
183
203

574
452
603

798
635
1,247

586
237
33

1,624
1,568
838

Oct.
Nov.
Dec.

3,791
3,377
3,396

1 ,773
1 ,361
1 ,024

564
982
1,601

1,454
1,034
770

28
124
93

162
171
95

383
426
589

1,280
794
860

371
658
50

1,757
1,499
1,895

2,235
2,175

989
625

195
700

1,050
850

14

79
10

138
250

896
850

31

1,168

100

975

1973 - Jan. ,
Feb.S.

1

PUBLIC
UTILITY

Other issuers arc extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




COMMUNICATIONS

OTHER
ISSUERS 1

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

ISSUER
Con. Light & Power
Continental Bank
Commercial Credit Co.
Louisville Gas & Elec.




TYPE

2

1st mtge
Notes
Notes
Pref sjtk

AMOUNT
(MILLIONS
OF
DOLLARS)
50.0
25.0
50.0
21.9

MATURITY
2003
1983
1993
"

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

7.63
7.50
7.75
' * 7.45

7.58
7.61 •
7.80
7.30

AA
--

A

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
_ _ _ _ _
j
ISSUER

Connecticut, State of
Tacoma, Washington
Buffalo, New York
Ohio, State of
Orange Co., Fla.

G.O.
Rfg. Rev.
G.O.
G.O.
Swr-Rev.

Other
Farmers Home Admin.
Farmers Hdme Admin.
Province of Quebec

Notes
Notes
Deb.

\

MATURITY

March 1 through March 30, 1973
COUPON
I
RATE OR
oitkr- MOODY'S
NET INTER- 1
INC
RATING
EST COST
i YIELD
!

Rev.

1 3

Jacksonville Elec. Auth, Fla.

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)
0

68. 0
24.,3
22.,9
40..0
10.,8

300..2
200..9
100,.0

1980-1990
2001
1974-1993
1982-2007
1974-1999

1978
1988
2003

5.29
4.87
5.49
4.99
4.88
5.52

7.20
7.50

4.,50-5.00
5.35
4..00-5.05
4..80-5.65
4..15-5.50
4..00-5.30
4..20 5.80

7.20
7.58

Aa
Aaa
A-l
A
Aaa
Baa-1

-—
——

Hights 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;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut. , revenue bonds secured only by income from quas i-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 Reconstruct inn and
Development issues and non-quaranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER
Great American Mortgage Inv.
Cabot, Cabot & Forbes Land Tr.
Union Commerce Corp
Continental Bank of Morristowr
Metropolitan Ed.
Citizens Mtge. Tr.
Philadelphia Elec.
Alison Mtge Invest. Tr.
Bell Tele of Pa.
Washington Water Pwr Co.
Instrument Systems Corp.
Tucson G & E
San Diego G & E
Tucson Gas & Elec.
GTE of Michigan
Mid-Continent Tele. Corp
Tenneco
Ryder System Inc.
Wickes Corp
_______
Cousins Mtge & Equity Inv.
*Gulf Power
Toledo Edison
Hartford Elect. Co.
General Public Utilities
^Baltimore Gas & Elec.
*Dayton Pwr. & Light.
^Public Service Colo.
Consolidated Edison Co. of NY.
^Industrial National Corp
Walter Kidde & Co.
Continental Illinois Corp
Arrow Investment L & D
First Continental REIT
Riviana Foods Inc.
Investors Realty Trust
NJB Prime Investors
Petrolane^ Inc.




TYPE
Bonds
Bonds
Bonds
Bonds
Pref stk
Bonds
Com stk
Bonds.
Bonds
Bonds
Bonds
Pref stk
Pref stk
Bonds
1st Mtge.
Pref stk
Bonds
Bonds
Debs '
Bene. Ind.
Bonds
Com stk
~
Bonds
Com stk (rtsj
Com stk
Pref stk
Bonds
Com stk
Notes
Debs
Bonds
Bene Ind.
Bene Int __
Com stk
Bonds
Bonds
Com stk

AMOUNT
(MILLIONS
OF
DOLLARS)
25.0
25.0
20.0
25.0
25.0
20.0
48.4
25.0
175.0
20.0
25.0
15.0
30.0
40.0
20.0
18.0
100.0
30.0
60.0
47.7
25.0
22.5
40.0
83.0
45.0
25.0
50.0
120.0
20.0
65.0
100.0
20.0
15.5
15.5
15.0
25.0
35.4

APPROXIMATE DATE
OF OFFERING

Apr. . 9
Apr. .10
Apr.
10
Apr. 11
Apr.
12
Apr. 17
Apr.
17
Apr. 24
Apr. 24
Apr. 24
Apr. 25
Apr. 25
Apr. 25
Apr. 25
Apr. 26
Apr.
Apr.
Apr.
Apr.
Apr.
May
1
• May
1
May
2
3
May
May
8
May
9
May
10
May
INDEF
INDEF
INDEF
INDEF
INDEF
INDEF
INDEF
INDEF
INDEF

11

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)

ISSUER

TYPE

State and Local
*Lehigh Co. Ind. Dev. Auth
Poll. Control
Wisconsin
*New Mexico
Memphis, Term.
*San Francisco Muni. R.R. Imp.
Corp
New York, New York
^Maryland Health & Higher Ed.
Fac. Auth
^Massachusetts Port Auth.
^Murray State Univ. Ky. Bldg.
Gulf Coast Waste Disposal
Auth, Tex.
San Jose USD, Cal.
^Seattle, Washington
Los Angeles Co, Calif Flood
Control Dist.
*United National Dev. Corp
Sacramento Muni Ut. Dist. Cal.
Elec
^Georgia Education Auth.
Lacygne, Kan.
Los Angeles Reg Airports Corp.
Cal.
Prince George's Co, Md. Poll
Cont.
Pensacola, Fla.
Washington
New Orleans, La.
Los Angeles Calif Dept. of
Wtr & Pwr.

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

AMOUNT
(MILLIONS
OF
DOLLARS)
28.0
36.5
11.0.
25.0

As

of April 6, 1973
APPROXIMATE DATE
OF OFFERING

Apr.
Apr.
Apr.
Apr.

10
10
10
10

Rev.
G.O.

10.8
285.4

Apr.
Apr.

10
11

Rev.
Rev.
Rev.

23.9
112.5
11.8

Apr.
Apr.
Apr.

11
12
12

Rev.
G.O.

25.0
13.0
12.0

Apr.
Apr.
Apr.

16
16
16

G.O.

22.0
54.3

Apr.
Apr.

17
18

Rev.

50.0
30.0
30.0

Apr.
Apr.
Apr.

18
18

Rev.
Rev.

25.5

Apr.

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

25.0
12.5
18.0

Apr.
Apr.
Apr.
May

Rev.

47.0

June

10.0

16

Included in table tcr first time.
'
—
Includes corporate and other issues of 515 million and over; State and local
Government issues of 510 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 PRICES 1>

TRADING VOLUME2"

DATE
NYSE INDEX3*

D J . INDUSTRIALS

NYSE

AMEX

22.1 (2/12)
11.0 (9/17)

6.7 (2/5)
2.7 (8/13)

AMEX *

1971 - High
Low

57.76 (4/28)
48.73 (1/4)

1972 - High
Low

65.14 (12/11) 1036.27(12/11) 28.53 (4/14)
56.23 (1/3)
889.30 (1/3) 25.61 (1/3)

21.8 (11/10)
11.2 (9/8)

7.4 (3/10)
2.6 (9/8)

1973 - High
Low

65.48 (1/11) 1051.70 (1/11) 26.70 (1/8)
56.85 (3/26) 922.71 (3/23) 24.05 (4/5

20.4 (1/12)
12.4 (4/6)

4.8 (1/12)
2.7 (3/16)

950.82 (4/28) 26.68 (4/28)
797.97 (11/23 )22.72 (1/4)

1973 - Mar.

2
9
16
23
30

60.17
61.02
60.75
58.15
59.58

961.32
972.23
963.05
922.71
951.01

24.68
24.88
24.71
24.17
24.41

17.2
16.0
14.2
15.5
15.6

4.0
2.9
2.7
3.1
2.8

Apr.

6

58.23

931.07

24.06

12.4

2.9

NOTES:
1.

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.

2.

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 and 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 = 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

13
TABLE 9: Security Credit

END OF PERIOE
Outstanding:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.
Outstanding
Changes:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 I " BANKS ?
TOTAL
5,700
6,180
6,620
7,010
7,200
7,510
7,600
7,780
7,800
7,800
7,890
7,900

2,490
2,510
2,520
2,530
2,560
2,650
2,690
2,780
2,830
2,860
2,860
2,440

8,190
8,690
9,140
9,540
9,760
10,160
10,350
10,560
10,630
10,660
10,750
10,340

7,700

2,910

10,610

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
30

90
10

-420

350
500
450
400
220
400
200
210
70
.20
90
410

-200

470

270

I
NET LREDTT
CUSTOMERS' = CUSTOMERS' NET EXTENDED BY
NET DEBIT : FREE CREDIT
' BR OK
j BALANCES |
|
DEALERS
BALANCES
1
I
1
j
1
!
I
j

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

2,488
2,542
2,512
2,459
2,300.
2,231
2,245
2,117
2,056
2,097
2,218
2,317

--

2,296

——

268
54
-30
-53
-129
-99
14
-128
-61
41
121
99

.—
--——
-•
——

——
—— •

21

(4)
(4)
• (4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
--

--——
-——
——
-——
--

--

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 carry in/
rities 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




/
TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)

DATE

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

1969
1970
1971
1972

2,549
4,517
9,621
9,788

4.0
6.8
13,5
12.0

1971 - December
1972 - January
February
December

1,209
855
931
1,333

--

1973 - January^/
February^/

766
551

-—

1972 - September r/
October r/
November £./
December t/

925
780
761
902
808
465

-763
936
5,678
5,397

SAVINGS ,Be LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
NET
MONEY2
GROWTH
1
FLOW
RATE

6,617
15,482
37,851
42,690
4,323
4,121
3,749
4,749

——

--

1,168
3,117
2,700
1,156

--

3,105

4,044
2,201

——

3,855
3,486
3,007
3,066

16.2
14.5
12.3
12.5

--

4,834
2,045

19.4
8.1

--

3,114
3,266
2,818
3,416

595
402

3,278
1,650

12 .6
10.5
10.2
12.0

--

2,930
2,706
2,246
2,164

17.8
16.2
13.3
12.7

--

10.6
6.1

--

4,026
1,580

23.3
9.0

-—

--

NET
NEW
MONEY 2

Not Seasonally Adjusted
4,068
3.1
-1,003
10,965
8.1
5,285
28,230
20,653
19.3
32,902
19.5
23,884

325
716
809
323

-—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

-—
---

3.4
7.7
17.5
17.0

--

—

--

-1,766
6,231
26,331
29,281
1,493
3,833
3,509
1,479
3,700
n.a.

Seasonally Adjusted

1973 - January?/
February^./

1
2
3

'

—
-—

---

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest.
Data for S&Ls are for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




---

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

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

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollar s, Seasonally Adjusted)r/
Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
-.06

.12
.15

•Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

17 .2
18.5
19.6
20.5
21.6
21.3
22.7
22.3
23.4
23,2
23.5
23.3

13.4
14.4
15.3
16.0
17.0
16.8
17.1
17.8
18.7
18.5
18.8
18.6

3.8
4.1
4.3
4.5
4.6
4.5
4.6
4.5
4.7
4.7
4.7
4.7

.23
1.36
1.13
.89
1.04
-.26
.38
.71
1.06
-.36
.38
-.19

.12
1.01
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20

.11
.35
.20
.20
.08
-.08
.08
-.05
.17
-.11
.04
.01

1

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
TABLE 12: Net Change in Mortgage Holdings

TOTAL h
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
LOAN
TOTAL I COMMERCIAL
|
BANKS
ASSOC.
BANKS

LIFE
INSURANCE
COMPANIES

Not Seasonally Adjusted

1972 - Jul;
Aug
Sep
Oct
Nov
Dec

24,074
21,736
41,647

19,699
16,827
39,259

5,404
2,462
9,940

2,682
1,845
3,938

9,561
10,172
24,160

2,052
2,348

4,872
5,931
5,286
4,779
5,114
5,943

4,717
5,563
4,918
4,684
4,984
5,811

1,500
1,600
1,400
1,400
1,500
1,000

438
553
502
472
517
598

2,758
3,313
2,926
2,673
2,712
3,101

79
97
90
139
255
1,112

1972 - Jan
Feb
Mar
Apr
May
July
Aug
Sept
Oct
Nov
Dec
1973 - Jan
Feb

162

900
900

1973 - Jan
Feb

3,456
3,828
4,464
4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
5,697

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
4,-738
5,212
5,601
n. a.
n. a.

Seasonally Adjusted
290
315
464
400
453
516
472
515
537
484
513
525

1,112
1,178
1,264
1,361
1,434
1,489
1,451
1,477
1,155
1,393
1,524
1,164
1,112
1,079

1,221

L ,871
2.,075
2 :>596
2 s,481
2.,567
2. ,959
2,,678
3,,108
2S,911
2.,726
2, ,876
3 :,130

-23
-18
5
85
67
96
101
79
111
135
299
782
219

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 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.




«

,

y-7

MULTI-AND
COMMERCIAL

FARM

TABLE 13: Net Increases in MortgageT)ebt Outstanding
Billions of dollars, SAAR ?
TOTAL

RESIDENTIAL 3

1- to 4FAMILY

1968 - I
II
III
IV

27.9
26.4
25.6
29.9

19.4
18.2
17.3
20.4

16.2
15.0
13.6
16.5

3.1
3.2
3.5
3.9

6.4
6.0
6.5
7.4

9.4
9.2
10.2
11.2 .

2.3
2.2
1.8
1.9

1969 - I
II
III
IV

31.7
29.1
25.7
25.6

23.8
21.5
18.7
18.5

19.4
16.8
14.0
13.1

4.4
4.6
4.7
5.4

6.0
5.4
5 .?
5 .3

10.4
10.1
10.0
10.7

2-, 2
2.2
1.7
1.4

1970 - I
II
III
IV

20.9
22.8
?8 3
32.2

14.4
16.8
21.3
22.8

9.4
11.6
15 .0
16.2

5.0
5.2

4.8
4.6

9.8
9.9

1.5
1.5

6.6

6.8

13.4

2.2

1971 - I
II
III
IV

37.7
47.4
52.3
54.9

27.3
36.0
38.9
40.7

19.2
26.5
30.1
31.9

8.0
9.4
8.8
8.9

8.1
9.5
11.1
11.0

16.0
19.0
19.9
19.9

2.2
2.3
2.3
2.5

1972 - I
II
III
IV

61.8
64.1
64.3
67.2

45.4
47.1
46.4
49.1

35.9
37.5
36.2
39.4

9.5
9.6
10.2
9.8

14.5
15.2
14.9
14.6

23.9
24.6
25.3
, 24.3

2.6
2.6
2.9
2.6

QUARTER

MULTIFAMILY

COMMERCIAL

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




*

TABLE 14: FNMA Weekly " A u c t i o n " Results
COMMITMENTS IN $ MILLIONS
ACCEPTED
TOTAL
TOTAL
9061-YEARH
OFFERED
DAY
M0NTH & OVER

WEEK
ENDED
1972 - Oct.

Dec.

1973 - J a n .

Feb.

Apr.

90DAY

2
16
30

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9
162.7

--

13
27

78.7
60.8

49.2
36.2

49.2
36.2

--

11
26

82.2
108.7

42.4
66.3

42.4
66.3

--

--

8
22

74.2
107.0

61.3
92.1

61.3
92.1

--

--

7.69
7.70

5

128.7
110.3

65.4
71.6

65.4
71.6

--

--

7.71
7.73

170.8
297.3

107.7
168.7

107.7
168.7'

234.6

145.9

145.9

20
Mar.

IMPLICIT YIELD 2 (per cent)

5
19
2

I

---

6MONTH

1-YEAR
& OVER

1

7.70
7.73
7.74
7.72
7.70

__

__

__

7.68
7.69

—-

—

7.75
--

7 .81
7.86

""

Note: Average secondary market yields are gross--before deduction of
38 basis-point fee paid for mortgage servicing. They reflect the average
accepted bid yield for home mortgages assuming a prepayment period of
12 years for 30-year loans, without special adjustment for FNMA commitment fees and FNMA stock purchase and holding requirements.




19

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

2 - January
February
March
April
May
June
July
August
September
October
November
December
3 - January
February

j

;
UNADJUSTED
! TYPE OF FINANCING
! FHA 1 VA || OTHER

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

2 ,439
2 ,540
2 ,313
2 ,204
2.,318
2 ,315
2. ,244
2. ,424
2. ,426
2S ,446
2,,395
2,,369

1,395
1,281
1,310
1,215
1,308
1,283
1,319
1,373
1,382
1,315
1,324
1,207

1,044
1,260
1,003
989
1,011
1,032
925
1,051
1,045
1,131
1,071
1,162

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.5

36.1 7.5
27.8 8.0
37.7 10.5
29.1 8.5
32.4 9.4
31.9 9.6
26.2 9.4
30.3 9.9
28.2 8.9
25.4 8.5
21.3 8.0
42.3 5.8

107.3
117.8
155.7
172.9
186.1
184.8
171.9
190.8
167.3
184.3
157.8
102.4

2,,496
2,,444

1,449
1,361

1,047
1,083

147.1 '
138.8

12.0

126.3

i

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

!

6.8
6.8

I

2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237
2,265
2,216
2,139
2,377
2,218
2,155

1

Total starts are Census estimates including farm for both permit-issuing and
noi,-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.

2

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..




;

20
TABLE 16: Mortgage and Bond Yields

DATE

1

|

FHA
MORTGAGES
r

30-year

2

| CONVENTIONAL
! MORT| GAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
ISSUE
Aaa
UTILITY
4

| SPREAD BETWEEN
j YIELDS ON NEW
j CORPORATE BONDS
1
AND
| FHA MORTGAGES 6

1971 - High
Low

7.97
7.32

7.95
7.55

.28
-.19

8.26
7.02

.52
-.36

1972 - High

7.57
7.45

7.70
7.55

.14
.06

7.40
7.09

.61
.05

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
August
September
October
November
December

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56
7.57
7.57
7.56

7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70
7.70
7.70
7.70

.11
.14
.10
.10
.07
.06
.11
. 10
.14
.13
.13
.14

7.21
7.34
7.24
7.45
7.38
7.32
7.38
7.37
7.40
7.38
7.09
7.15

.28
.12
.21
.05
.15
.22
.16
.18
.16
.19
.61
.55

1973 - Jan,
Feb.

7.55
7.56

7.70
7.75

.15
.19

7.38
7.40

.32
.35

1

2

3

4
5
6

'

I

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.
Based on FHA-fieId-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.
Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
See note for Table 1.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




21
TABLE 17: Conventional Mortgage Terms

DATE

1972
Jan.
Feb.
Mar.
Apr.
May

CONFEES &
TRACT CHARGES EFFEC- MATURITY
(PER
(YEARS)
RATE
TIVE
CENT) RATE
(PER
CENT)
•3
2

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

1

EXISTING HOMES
FEES &
CONLOAN /
TRACT CHARGES EFFEC- MATU- PRICK.
(PER
RATE
TIVE
RITY
RATIO
CENT) RATE
(PER
(YEARS) (PER
CENT)
CENT)
2
3

July
Aug.
Sept,
Oct.
Nov.
Dec.

7 62
7.,45
7,.38
7,.38
7,.40
7,.41
7,.43
7..45
7..43
7.,48
7.,50
7.,51

0 95
1 .02
0,.84
0,.83
0,.84
0,.85
0,.83
0,.86
0,,86
0.,88
0.,91
0.,92

7.78
7.61
7.52
7.51
7.53
7.55
7.56
7.59
7.57
7.62
7.65
7.66

26.5
27.0
27.2
27.2
27.2
27.2
27.2
27.5
27,3
27.2
27.5
27.5 '

75 0
76..5
76,.2
76.0
76.,2
76..5
77.,0
77..5
77.,5
77.,3
77.,3
78. 0

27. 6
27.,8
28.,2
28.,5
28.,5
27. 8
28.,2
27. 9
27. 9
27. 4
28. 0
29. 1

7.,45
7,.35
7,.31
7,.30
7..33
7,.36
7,.37
7..39
7..42
7.,43
7.,44
7.,45

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
0.83
7.55
0.84
7.57
0 . 8 4 ' 7.58
0.86
7.59

1973
Jan. r/
Feb. £/

7. 52
7. 5 3

0. 92
0. 96

7.67
7.69

27.5
28.0

78. 5
79. 0

29. 0
29. 9

7. 46
7. 47

0.83
0.82

7.60
7.61

LOAN
AMT.
($000)

24.7
25.4
25.1
25.2
25 . 2
25.5
25.6
26.3
26.2
26.1
26.3
26.4

74. 7
75..8
75..6
75..3
75..4
76.,1
76.,2
76.,5
76.,5
76.,3
76. 8
76. 8

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4
25.7

26.1
26.4

77. 0
77. 4

25.6
25.4

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 16.
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.




.