Full text of H.16 Capital Market Developments : August 10, 1970

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BECOHTEOLLED AFTER S I X MONTHS

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

August 10,

„ YTAPITAL
(MARKET
—
DEVELOPMENTS

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




1970

INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

YIELDS •
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

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

1970 - July

3
10
17
24
31

9.02
8.70
8.58
8.38
8.60

8.60
8.55
8.49
8.50
8.26

360
395
475
403
364

100
94
83
88

Aug.

7
14

8.35
n.a.

8.17
n. a.

330
575e

79e
n.a.

WEEK ENDING:

1970 - July

Aug.

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

91

886
580
674
883

v

1,380
n.a.

MUNICIPAL BOND MARKET
VOLUME2
\
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
WITHIN 28 DAYS
OFFERINGS
634
845
781
808

3
10
17
24
31

6.65
6.50
6.50
6.15
6.20

6.79
6.59
6.60
6.28
6.40

119
177
282
351
397

54
67
62
72
62

676

7
14

6.10

6.25
n.a.

268
275e

89
n.a.

710
n.a.

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

Sec footnotes to Table 3




TABLE 2: Details on Inventories

DATE
OFFERED
8/6
8/5
8/5
8/5
8/4
7/30
7/30
7/30
7/28
7/22
7/22
7^14

OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL RATING AND
. ESTIMATED PROYIELD CALL PROTECTION - , PORTION SOLD
ISSUER
COUPON
Philips Indus.
10.00
\
60%
10.00
Baa
5 yrs
United Gas P/L
10.13
98%
10.13
Baa 10 yrs
General Tel. & Elec.
8.75
8.80
Baa
5 yrs
95%
y
Duke Pwr.
8.63
8.65
33%
5 yrs
Aa
Household Fin. Corp.
9.00
8.89
98%
N.R.
Carolina Pwr. & Lt.
95%
8.75
8.75
Aa
5 yrs
Pennwalt Corp.
9.13
9.18
85%
5 yrs
A
Youngs town
10.50
10.50
90% ,
10 yrs
A
Miss. Pwr & Lt.
9.25
9.05
5 yrs
30%
A
Pioneer Nat. Gas
9.50
9.50
98%
Kansas Neb. Nat. Gas
9.13
9.13
75%
Pacific Pwr. & Lt.
9.63
9.50
Baa
5 yrs
90%

AMOUNT
(MIL. $)

v
1

15.0*
15.0
50.0
100.0
75.0
50.0
40.0
40.0
18.0
20.0
15.0
25.0

DATE
RELEXSED

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

AMOUNT

None

INVENTORIES 1
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1970 - July

Aug.

10
17
24
31
7

335
376
392
452
551

.

73
128
119
215
126

CORPORATES
IN SYNDICATE
23
108
50
40
109

All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest week
.which is daily average- of three days ended Wednesday. All other ^figures? are as of Friday.
•
.




..

-

..

&& ^ w*.

^

BONDS IN SYNDICATE
Millions of dollars

Friday figures

CORPORATE BONDS IN SYNDICATE

200
100

MUNICIPAL.BONDS IN SYNDICATE
300

200
100

SEPT.

DEC.

'68




MAR.

JUN.

1969

§EPT.

DEC..

MAR.

JUN.

1970

SEPT.

DEC.

\
TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
Aaa 2

1968 - High
Low

7.02
6.13

(12/13)
(8/30)

6.55
5.95

(1/27)
(9/13)

1969 - High
Low

8.85
6.90

(12/5)
(2/21)

7.84
6.55

(12/26)
(1/13)

1970 - High
Low

9.30
8.20

(6/19)
(2/27)

8.60
7.79

(7/3)

5.90
5.18

(1/20)
(8/9)

6,97 (12/26)
. 5.96 (1/24)
7.55
6.60

(5/29)
(3/6)

BOND
BUYER'S
SEASONED
MUNICIPALS4
4.85
4.07

(1/26)
(8/8)

6.90
4.82

(12/18)
(1/28)

7.12
5.95

(5/29)
(3/12)

7.10
6.79
8.60
9.02
6.59
6.91
8.55
8.70
6.60
6.96
8.49
8.58
6.28
6.89
8.40
8.38
6.90
6.40
8.26
8.60
6.25
6.96
8.17
8.35
1 New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2 Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series i

1970 - July 3
10
17
24
31
Aug. 7
^

(3/6)

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES3




HIGH GRADE BOND YIELDS

Percent

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

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

1966




1967

1968

1969

1970

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

GROSS PROCEEDS
1

STATE AND LOCAL 2

CORPORATE

PERIOD
1970

1969

1968

1970

1969

1968

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

1,646
995
1,070

1,801
1,110
737

1,318
1,143
1,395

1,300e
l,300e

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

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

6,435
8,899
. 11,881

- 7,956
12,008
16,574

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

3,142
3,600e
3,225e

2,748
2,076
2,530

1,428
1,866
2,411

July
August:
September

2,850e
2,700e

2,478
1,427
2,427

2,143
1,432
1,557

1,933
2,375
2,532

2,129
1,767
2,054

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

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

13,572
19,904
26,744

10,882
16,015
21,965

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

7,977
9,967e

1st half
Three quarters
Year
.

1st
2nd
3rd
4th

Quarter
Quarter '
Quarter
Quarter

|
|

4,105
3,711

Excluding finance companies3
6,170
7,037

5,107
5,427
4,785
5,654

Year

20,973
1
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association o'f America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.

Note: AT&T rights offering included in May estimate.




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

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

1969 - II
III
IV

7,354
6,332
6,840

3,411
3,186
3,479

1 673
1 347
1 053

2,268
1,797
2,307

227
289
115

1970 - I
He

7,977
9,967

4,577
6,926

1.235
1;,333

2,147
1,708

1969 - June
2,530
(July 2,478
Aug.
1,426
Sept. 2,427
Oct.
1,933
Nov.
2,375
Dec.
2,532

1,272
1,279
685
1,222
969
1,164
1,346

514
609
259
479
313
226
514

2,636
1970 - Jan.
Feb.
1,802
Mar. , 3,539
Apr.SV 3,142
May ey; 3,600
June—' 3,225

1,595
1,068
1,914
2,001
3,000
1,925

516
266
471
433
400
500

1

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS1
3,266
2 j, 243
2,961

1,126
750
809

1,,773 1,,878
1,,862 1,,544
1,,314 1,,967

432
684
598

222
n.a.

922
649

2,,584 2,,085
2.,690 2.,607

766
2,215

7,44
*589
482
726
651
984
672

137
132
122
35
59
8
48

233
214
167
369
105
303
401

525
468
1,154
708
200
800

61
33
128
88

387
249
286
374
200
75

691
875
362
625
260
453
601

702
493
507
544
745
622
600,

639 '
811
540
357
1 ,416
906
690 1,107
900
450
1,,100 1 ,050

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




COMMUNICATIONS

191 286
126
272
120
201
277
234
226
306
65
1,800
350

2,543
2,455
946
826
433
984
808
1,099
1,054
952
680
911
1,280
450
725

7

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

ISSUER

\

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

I August 1 through 7
COUPON
OFFER- MOODY' S
RATE OR
RATING
ING
NET INTERYIELD
EST COST

MATURITY

Corporates
Union Pacific R.R. Co.
Gen'l Tel. & Elec. Corp.
Household Finance Corp.
Philips Industries Inc.
Acme Markets Inc.
Duke Pwr. Co.
United Gas Pipeline Co.




'

...

.

50.0
!quip. Trst.
Ctfs.
90.0
Lst Mtg.
lebs.
75.0
15.0
Votes
25.0
>.F. debs
L st. &
Refunding Mtg.100.0
15.0
lebs.

'

____

1985

\

\

'

__

8.75

'

.

__

,

8.81

Aaa

1976
1976
1975
1990

8.75
9.00
10.,00
9.88

8.80
8.89
10.00
9.93

Baa
N.R.
Baa
A

2000
1990

8.,63
10.,13

8.65
10.13

Aa
Baa

T A B L E 6:

Large Long term Public Security Issues for New Capital (continm d)
(Other than U.S. Treasury) 1

. • •
ISSUER

•
TYPE2

State and Local
Turnpike Auth. Kentucky
Turnpike Auth. of Kentucky
Virginia Pub. Sch. Auth.
Taylor, Mich S/D
San Francisco BARTS
Atlanta, Ga.
Washington Sub. Sanit.
Dist., Maryland
Puerto Rico Aqueduct &
Sewer Authority

AMOUNT
(MILLION'S
OF
DOLLARS)
'

MATURITY

August 1 through 7
COUPON
1
j
RATE OR
• < M-TER - !MOODY'S
NET INTERi:.(
j RATING
EST COST
j Ylhli) J

"

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

9.0
51.0
25.0
12.2
50.0
15.0

1974-90
2010
1972-86
1971-90
1972-80
1971-1995

7.38
5.67
6.86
6.23
5.86

5.30-7.10
7.38
4.60-6.50
4.75-7.10
5.00-6.20
4.50-6.30

Aa
Baa
A
Aa

Bds.

17.0

1971-2000

6.3d 1

4.75-6.75

A

G.O.

20.0

1972-2003

6.60

4.70-6.45

-

-

\

*
1
2

3

Bights 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 gemva I. obi i gat i on; *
Rev.-Ut. , revenue obligations secured only by income from public utilitii's;
Rev.-Q.-lit. , revenue bonds secured only by income from quas i -ut iIi ties.; Rev. -S .T . ,
revenue bonds secured by revenue from speci fic taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
t
Includes foreign government and International Bank folr Reconstruction 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

(continued)

ISSUER

TYPE

Corporate
debs.
National Fuel Gas Co.
Shell Oil S,F. debs.
Northern Illinois Gas Co.
1st mtg
debs.
Ramada Inn
debs.
Burlington Industries Inc.
Southwestern Bell Telephone
debs
Company
debs.
Bristol-Myers Co.
American Finance System,
debs.
Inc.
Shell Oil Co.
debs.
Wisconsin Pub. Service Corp^ Bonds
/
^Holiday Inn Investors
Conv. debs.
Central Illinois Light Co.
Bonds
Gen* 1 Tel. & Electronics
Corp..
( debs.
Potomac Electric Pwr Co.
Bonds
Arkansas Pwr & Light Co.
Bonds
*May Department
debs.
^General Motors Acceptance
Corp j
-delas.
1st mtg
*UGI
Rochester Gas & Elec. Corp. 1st mtg
North Indiana Pu6. Service
1st mtg
Co.
Public Service Co. of Col.
1st mtg
Continental Telephone Corp. Notes
Hawaiian Telephone Co.
Bonds
*Westinghouse Elec. Corp.
debs.
Hotel Investors
debs.
debs.
Amerace Esna Corp.
Notes
Monogram Industries
debs.
^Columbia Gas System Inc.
New England Telephone &
Telegraph Co.
debs.
Atlantic City Elec. Co.
1st mtg
Long Island Lighting Co.
1st mtg
Virginia Elec. & Pwr Co.
1st mtg
Texas Pwr & Light Co.
Western Electric Co.
debs.




AMOUNT
(MILLIONS
OF
DOLLARS)

As of August 7
APPROXIMATE DATE
OF OFFERING
-

21.0
150.0
:
35.0
25.0
75.0

August
August
August
August
August

10.
11
11
12
12

150.0
75.0

August
August

12
13

15.0
150.0
45.0
150.0
25.0

August
17
August
18
August . 18
August
19
August
19

40.0
70.0
25.0
50.0

August
August
August
August

19
19
20
25

100.0
25.0
30.0

August
August
August

26
26
26

35.0
35.0
65.0
35.0
200.0
20.0
25.0
25.0
50.0

August
August
August
August
August
August
August
August
August

26
26
26
27
27

175.0
27.0
40-50.0
85.0
30.0
150.0

Sept.
Sept.
Sept.
Sept.
Sept.
Sept.

1
2
9
10
14
29

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
Rev. .
Florida State Bd of Ed.
Alabama Highway Auth.
G.O.
G.O.
California
Harford Co., Md
G.O.
Oregon, State of
G.O.
Penna. St. Pub. Sch. Bldg.
G.O.
Auth.
G.O.
King Co., Wash
San Francisco Airport Imp. Co.
G.O.
Cal.
Dade Co. Port Auth., Fla.
Rev.
St. Paul, Minn.
G.O.
*New Hampshire
G.O.
Oakland Co., Mich
G.O.
Roanoke, Va.
G.O.
Detroit, Mich
Rev.
Madison, Wis.
G.O.
Los Angeles DWAPS
G.O.
Ohio, State of
G.O.
Miami, Fla.
G.O.
Other

2

21.4
11.0
30.0
63.5
20.5
24.5
15.6
10.5
46.0
12.9
39.0
100.0
12.5

August
August
August ,
August
August

10
11
11
12
18

August
August

18
18

August
18
August
19
August
19
August
20
August
25
August
August
September
1
September
2
September
3
October
8

~-

Federal Home Loan Bank

*
1

20.0
35.0
100.0
11.5
55.0

Bonds

265.0

Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Postponement:
Mecklenburg Co., N.C. - 16.9 - postpone indefinitely
First National Holding Corp. - 25.0 -Withdrawn because of mark, condition




v

TaBlE 8

Stock Prices.anii Volume

?

STOCK PRICES '
3

Too 1

D.J. - IND.

|

TRAD1?:;G V0LUMFV

4

NYSE

AMEX

|

'

AMEX

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

1968 - High
Low

108.37(11/29) 985.21(12/13)
87.72(3/5) 825.13 (3/21)

33.24(12/20) 82.61(6/7)
21.97(3/25) 34.0(2/23)

1969 - High
Low

106.16(5/14) 968.85 ( 5/14)
89.20(7/17) 769.93(12/17)

32.91(1/3)
25.02(7/29)

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

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

197.0 - High
Low

93.46(1/5) 811.31(1/5)
69.29(5/26) 631.16(5/26)

27.02(1/8)
19.36(5/27)

80.7(5/26)
35.1(7/3)

28.4(1/2)
8.3(7/3)

1t970 - July 3 . 72.92
10
74.57
17
77.69
77.82
24
31
78.05
, Aug. 7 77.25

689.14
700.10
735.08
730.22
734.12
725.70

19.95
19.93
20.19
20.32
20.50
20.37

35.1
53.8
49.7
56.1
51.2
40.6

8.3
12.1
10.6
10.6
11.3
11.2

1^ Figures other than highs and lows are Fridays only. Highs and lows are
for the year and are not necessarily for Fridays.
2.

1941-43 =10.

3.

Average dollar value of shares listed.

4. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Total number of shares traded per week (millions of shares). Trading is
normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2
, hours per week. In recent years, however, abbreviated trading to the
extent, and over the time periods, shown below:

From:

Through:

August 8, 1967
January 22, 1968
June 30, 1968
January 3, 1969
July 7, 1969
January 2, 1970

August 20, 1967
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1 ^ 1970




Hours/
Dav
4
4
5-1/2
4
4-1/2
5

Days/
Week

,
(

5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

|
S
|
::
#
7

15

STOCK PRICES AND TRADING VOLUME
AM EX

Weekly
1280 128

STOCK PRICES
AMEX PRICE LEVEL INDEX

1200 120

1120 112

1040 104

960

96

880 88
—

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1967




80

720
Millions of shares

72

60

AMEX TRADING VOLUME (TOTAL FOR WEEK)

1966

800

1968

1969

1970

TABLE 9: Security Credit

END OF PERIOD
Outstanding;
1969 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS1 I BANKS 2
TOTAL

CUSTOMERS 1
NET DEBIT
BALANCES

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

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

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

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

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

3.084
3.085
2,783
2,577
2,579
2,753
2,613
2,803

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

1970 - Jan.
Feb.
Mar.
Apr.r
MayP
Change
Outstanding:

4,680
4,570
4,520
4,360
4,150

2,430
2,370
2,370
2,330
2,290

7,110
6,940
6,890
6,690
6,440

6,683
6,562
6,353
5,985
5,433

2,626
2,563
2,441
2,248
2,222

4,057
4,099
3,912
3,724
3,211

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

100
-330
-170
-170

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

110
-360

- 40

430
-260
-699
-496
20
204
-132
334

7
1
-302
-206
2
174
-140
190

423
-261
-397
-290
18
30
8
144

-440
-170
- 50
-200
-250

-121
-209
- 69
-521

-762

-177
-163

-585
42
-187
-188
-513

1970 - Jan.
Feb.
Mar.
Apr.
MayP

- 60

100
30
-100

-290
-110
- 50
-160
-210

-150
-40
-40
-40

-210
-200

-110
50
- 20

- 22

-193
- 26

• 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 s (applied by the New .York
Stock Exchange ajnd are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; b a n k
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or nob.




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries

($ millions)

DATE

1967
1968
1969

5,082
4,208
2,551

1969 - Apr.
May
June
1970

Apr.
May £./
June ]j/

1969 - Dec.
1970 - Jan.
Feb.
Mar.
Apr.
May P/
June P/
1
2
3

TOTAL
SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
DEPOSITS
NET
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
ANNUAL
NEW
NEW
ANNUAL
ANNUAL
GROWTH
MONEY2 NET
MONEY2
GROWTH
NET
GROWTH
NET
1
1
RATE 1
FLOW
FLOW
RATE
RATE
fLOW

-197
307
324
+ 6
326
450

2,376
1,143
' - 747

9.3
7.1
4.0

-—
-——
—

229

4.1

-117
298
244
371
360
319

-2.1
5.4
4.4
6.6
6.4
5.7

.

Not Seasonally Ad lusted
10,649
9.4
6,129
7,399
6.0
2,738
4,020
3.1
-1,003

15,371
11,607
6,371

9.4
6.3
3.4

NET
NEW
MONEY2

8,505
3,881
-1,750

- 325
227
- 266

- 516
642
1,359

- 543
601
- 116

- 713
949
1,683

—

868
828
- 382

- 136
224
- 125

207
188
——
763
707
—
267
1,812
Seasonally Adlusted

213
1,079
2,262

• —

52
931
142

--

—
• ——

w

-

——

—

.

—•

. 47

0.4

- 754
247
1,021
973
637
902

-6.7
2.2
9.1
8.6
5.6
7.9

. —

—
•——
—
——

__
——

276

1.6

- 871
545
1,265
1,344
997
1,221

-5.2
3.3
7.5
8.0
5.9
7.2

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.




—

——
—

—

19

SAVINGS FLOWS (seasonally adjusted)

M i l l i o n s of dollars

Monthly

2000
—

—

-

\

/ V

TOTAL

1600
1200

M /

800

-

\

/s

400

1

/

1

1 1 1 I I M 1 U 1li 1 1 1 1 1 1 M 1 1

1

SAVINGS & LOANS

MUTUAL SAVINGS BANKS
-

-

1

1966




1

1967

'

1968

1 I'M

1 1 1 I li

1969

M

1 M

1 1 I I I

1970

1 1 II

400

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
(Billions of Dollars, S<lasonally Adjusted) 1/

969 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
.970 - Jan.
Feb.
Mar.
Apr.
May
June

1

10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4

7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8

3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6

-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25

-.06
-.11
-.22 1
-.24 .
-.18
-.23
-.18
-.12

8.2
7.9
7.6
7.8
8.0
8.2

5.6
5.4
5.2
5.4
5.8
6.1

2.6
2.5
2.5
2.4
2.2
2.1

-.17
-.30
-.26
.13
•M
.22

-.22
-.23
-.21
.26
.38
.30

MUTUAL"
SAVINGS
BANKS
(N.Y. STATE)

-.05
-.06
-.10
-.12
-.13
-.09
-.06
-.13
.04
- -.07
-.05
-.13
-.14
-.09

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 chg^iges
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.




1

1

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

DATE

1 TOTAL
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS
LIFE
MUTUAL SAVINGS &
INSURANCE
SAVINGS
TOTAL COMMERCIAL
LOAN
COMPANIES
BANKS
ASSOC.
BANKS
Not Seasonally Adjusted
3,761
2,720
4,705
7,520
3,153
4,639
9,350
2,787
6,677
9,407
2,682
5,535

4,596
2,907
2,459
2,052

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

179
155
144

191
185
222

177
189
n.a.

477
378
397

1,022
859
720
654
627
547
576 .

183
173
193
191
171
139
134

278
334
530
511
568
583
614

400
436
276
357
588
935

225
241
125
189
196

556
499
516
494
418
454

1966
1967
1968
1969

18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

1969 - Apr.
May
June

2,227
2,li61
2,387

2,036
1,976
2,165

627
600
575

1970 - Apr.
May
June

1,500
1,634
n.a.

1,0?3
1,256
n.a,

486
160
200
723
144
200
214
1,128
400
Seasonally Adiusted

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

2,153
1,698
1,910
1,876
1,734
1,652
1,906

1,875
1,364
1,380
1,365
1,166
1,069
1,292

440
151
310
383
244
237
347

230
181
157
137
124
146
235

1970 - Jan.
Feb.
. Mar.
Apr.
May
June

1,493
1,604
1,228
1,386
1,484

937
1,105
712
892
1,066
n.a.

288
285
144
141
133
269

24
143
197
205
160
213

1

-

204
233
230

FNMA-GNMA

1,026
988
1,216

,

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.




23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

,

Billions of dollars

3.0

2.5
TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

Billions of dollars, SAAR 1- to 4- MULTIFAMILY

MULTI-AND
COMMERCIAL

TOTAL

RESIDENTIAL

1966 - IIIp
IVp

18.7
15.2

11.0
9.2

8.4
7.0

2.6
2.1

5.5
4.2

8.2

1967 - Ip

10.0
13.8
19.6
19.9

6.8

IIIp
IVp

15.6
20.5
27.0
27.5

10.5
'15.7

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7

8.8

1968 - Ip
HP
IIIp
IVp

27.1
25.9
26.5
30.1

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5

9.4
8.9
10.1
11.7

2.3
2.2
1.8

4.0

6.3
5.7
6.5
7.8

1969 - It

30.4
28.5
25.1
25.7

22.1
21.2

4.2
4.7
4.6
4.8

6.1

20.1
18.6

17.9
16.5
15.5
13.7

5.0
5.0

6.0

10.3
9.6
9.5
10.8

2.2
2.3
1.8
1.2

19.7

13.4

8.9

4.3

5.2

9.7

1.1

QUARTER

IIP

IIP

IIIp
IVp
1970 - Ip

16.0

COMMERCIAL

6.2

2.2
1.8

1.8

1.8

2.5
2.7

1.8

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.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24

TOTAL
RESIDENTIAL

16
1 4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Weekly "Ai/ction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD^(per cent)
ACCEPTED
11
90TOTAL
TOTAL
1 -YEAR
1-YEAR 1
9066OFFERED
DAY MONTH & OVER
& OVER
DAY
MONTH

1970 - May

5
11
18
25

443.3
269.2
300.3
289.5

195 5
102 2
136,3,
145,,2

43.5 212.1
26.0
63.2
32.4 86.4
38.9
86.7

38.9
13.0
17.5
19.7

9.01
9.04
9.11
9.15

9.,04
9.,07
9.,13
9,.18

K

June

1
15
29

224.2
249.7
156.3

113,, 8
127,.9
98,.9

31.1
34.2
30.6

71.4
86.7
56.5

11.3
7.0
11.8

9.20
9.27
9.32

9,.24
9,,30
9 .33

9.27
9.31
9.34

July

13
27

286.2
323.8

113,.3
150,,4

25.0
37. Q

73.0
91.1

15.3
22.3

9.20
9.10

9,.21
9,.12

9.22
9.12

Aug.

10

.

9.10
9.13
9.18
9.22

[250.0)-/

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller1s option, %nd at any
time within the specified period. Bids on proposed homes lelate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
,
1

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding.of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.

3

FNMA announced limit of accepted bids for next week's auction.

'




i

FNMA "AUCTION" RESULTS
$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

6 MONTHS

100

1 YEAR
AND OVER

50

3 MONTHS
12

IMPLICIT YIELD

6-MONTH COMMITMENTS

10

8
" " " I

I

I

I

1

1

1

i

r

i

i

i

l

l

i

i

i

i
$ Millions

-

• •

-

TOTAL BIDS RECEIVED

f\

• -

800

600

\vv

400

200
|

j
JUNE

| TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




DEC.

i

I
FEB.

I

i
APR.

i

r
JUNE

1970

i

r
AUG.

i

i
OCT.

0

i
DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

9 - May .
June
July
Aug.
Sept.
Oct,
Nov.
Dec.

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

877
826
803
752
828
766
762
776

656
681
626
624
653
624
518
626

0 - Jan.
Feb.
Mar.
Apr.
• MayP
Junep

1,059
1,306
1,392
,1,224
1,225
1,358

577
725
708
697
717
818

482
581^
684
527
508
540

1

-

TOTAL

UNADJUSTED

TYPE OF FINANCING
FHA | VA
OTHER

BUILDING
PERMITS
(SEASONALLY ADJUSTED
ANNUAL
RATE) 2 J

155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1

21.1 4.3
21.5 4.6
20.8 4.7
22.4 4.2
18.3 4.8
25.1 5.0
18.8 3.9
23.2 4.2

130.1
121.2
99.7
98.3
106.2
93.3
74.7
57.9

1,323
1,340
1.228
1,245
1,201
1,183
1,191
1,239

66.4
74.3
114.7
128.4
123.1
131.6

16.5 3.4
17.5 3.9
25.2 4.8
32.4 5.4
37.1 5.2
40i 7 5.0

46.5
52.9
84.7
90.6
80.8
85.9

1,013
1,137
1,099
1,263
1,321
1,302

Total starts are Census estimates including farm for both permit-issuing and
not.-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 guarj
antee 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 before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the. number of working days per
month, as well as other differences in timing and coverage.




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of u n i t s

SEASONALLY ADJUSTED

HOUSING STARTS

1.6

1.2
MBUILDING PERMITS

CHANGE IN SEMES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

(2 or more)

.

*.
\

-

-

GOVERNMENT UNDERWRITTEN

1

I
1964




I

I
1966

1

h i ii i M i i ii 1
1968

1970

TABLE 16: Mortgage and Bond Yields

DATE

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - High
- Low
1969 - High
Low
1970 - Jan.
Feb.
Mar.
Apr.
May
June
1

2

3

4

1

NEW
SPREAD BECONVENTWEEN YIELDS Aaa CORTIONAL
PORATE
ON C0NV. &
MORT25-YEAR 30-YEAR GAGES
BONDS
FHA MORT4
3
GAGES
FHA
MORTGAGES 2

6.26
5.43
6.73
n. a.
\ n. a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

n.a.
5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

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

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91

1.69
.77
1.16
1.28
.27
1.20
.26
1.08
-.13

wee '

8.55
8.55
8.55
8.55
8.55
8.55

-.74
-.65
-.55
-.56
-.61

8.46
8.30
8.60
8.60
9.10
9.11

.99
.60
.50
.01
.05

9.29
9.20
9.10
9.11
9.16

Neither mortgage nor bond yields include allowance for servicing costs which arc
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to

a semi-annual interest investment, would be slightly higher than given in the
table.
.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and—beginning July 1961--30~year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of thei two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed ^ine indicates this change in the,series.
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

12

11

10

9

8

7

HOME MORTGAGES:

6

CONVENTIONAL

5

Aaa CORPORATE BONDS:
NEW ISSUES

^

4
SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

100

+

0

100
1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

NEW HOMES
CON- FEES &
I LOAN/
PRICE
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
CENT)

(PER
CENT)
2

TIVE
RATE
3

1

EXISTING HOMES,
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
RITY RATIO
(YEARS) • RATIO
TIVE
CENT) RATE (YEARS) (PER
(PER ($000) (PER
LOAN
AMT.

CENT)

CENT)

2

LOAN
AMT.

($000)

CENT)

3

1969

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

7.50
7.62
7.76
7.86
7.89
7.99
7.97
8.07

0.88

8.05
8.13
8.13
8.25

25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

73.2
73.0
72.0
72.3
72.9
72.8
72.8
71.9

25.0
24.9
24.5
24.3
25.0
24.6
24.6
25.0

8.34
8.41
8.47
8.40
8.45
8.47

25.0
25.2
25.0
24.8
25.3
25.1

69.3
71.8
71.1
71.1
71.7
71.4

25.1
24.9
25.1
24.5
25.3
25.6

0.84
0.92

7.65
7.76
7.91

0.86

8.00

0.92
0.89
0.96

1.06

7.54
7.64
7.79
7.90
7.98

8.00
8.00
8.08

0.83

0.86
0.91
0.93
0.91

0.90
0.90
0.93

7.68
7.79
7.94
8.05
8.13
8.15
8.15
3.24

22.7

22.6
22.9

71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

.29
8.41
8.43
8.35
8.34
8.34

22.4
22.4
22.6
22.8
22.8
23.0

70.3
70.2
70.4
70.4
70.3
71.6

22.8
22.8
22.6
22.2
22.6

1'9.7

20.1

20.1
19.8

19.2
19.5
20.1
20.8

1970

Jan.
Feb.

Mar.
Apr.
May
June
1

.16
8.23
8.29
8.23

8.28
8.30

1.08
1.09

1.11
1.02
0.98
0.98

8.13

8.23

8.26
8.20
8.18
8.18

0.94

1.02
0.98
0.90
0.94
0.97

20.5
20.4

20.6
20.4

21.1
21.6

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.

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.

4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

30

MATURITY
NEW

25

EXISTING

20

J

L

• 1111111111111
1 I M I I i M 1 I I I 1-J-L JLL1 I15
II!
80

LOAN/PRICE RATIO

NEW

75

EXISTING
70

M II I I I II I I I II I H
m lI 65
Thousands of doll

LOAN AMOUNT
30
NEW

20
EXISTING

10

1964




1966

1968

1970
* CHANGE IN SERIES