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DECONTROLLED AFTER SIX
L . 5 . 8 Confidential ( F . R . ) f

August 11. 1969.

WF
CAPITAL
MARKET
DEVELOPMENTS

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




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:
Estimate
Preliminary
Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - July

Aug.

YIELDS
MOODY'S
SEASONED
NEW ISSUE '
Aaa

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

4
11
18
25

7.63
7.68
7.52
7.58

7.03
7.08
7.10
7.10

86
259
548
220

1
8
15£/

7.75
7.57
n.a.

7.05
7.01
n.a.

243
148
240e

WEEK ENDING:

YIELDS
BOND BUYER
MOODY'S
SEASONED 20
SEASONED
BOND INDEX

1969 - July 4
' 11 |
18 1
25 j

5.55
5.52
5.52
5.62

5.68
5.65
5.62
- 5.86

Aug.

5.78
5.70
n.a.

5.93
5.80

1 |
8 !
15j>/|

....

49
100
86
77

^

97
99
n.a.

515
771
424
532
467
482
562

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

129
188
347
222
142
256
200e

-

57
58
70
57

690
653
656
763

97
80
n.a.

542
405
n.a.

i
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 bv the Federal Government.)
2 Millions of dollars unless otherwise indicated.
footnotes to Table 3




TABLE 2: Details on Inventories
DATE
OFFERED

AMOUNT *
(MIL. $)

8/6
7/16

,

20.0
16.0

DATE
OFFERED | RELEXSED

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

American Investment
Wisconsin Gas

8-3/4
8-1/2

.8.80
8.40

N.R.
Baa

10 yrs. ,
5 yrs.

ESTIMATED PR(jPORTION SOLD

90%
60%

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

NONE

INVENTORIES 1
MUNICIPALS
'
IN SYNDICATE
BLUE LIST
|

DATE
1969 - July

Aug.

11
18
25
1
8j>/

390
463
507
r/421
371

127
180
203
54
59

CORPORATES
IN SYNDICATE

.

10
78
57
26
8

N.C. - No call protection.


1
All figures in millions of dollars.•
which is daily
http://fraser.stlouisfed.org/ average of three days
Federal Reserve Bank of St. Louis

Blue List is daily average for week ended Friday, except for latest week
ended Wednesday. All other figures are as of Friday.

BONDS IN SYNDICATE
Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100

r 1—|—i
i—r—r—i—i—i—r~r
MUNICIPAL BONDS IN SYNDICATE

T

T

300

200
100

SEPT.

SEPT.

67




1968

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

TABLE 3: High Grade Bond Yields

NEW
.
CORPORATE
1
Aaa

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT 1
20-YEAR
• CONSTANT .
MATURITIES 3
]

BOND
BUYER'S
SEASONED
MUNICIPALS 4 •

1967 - High
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/17)
3.40(2/2%

1968 - High
Low

7.02(12/13)
6.13(8/30)

6.55(1/27)
5.95(9/13)

5.90(1/20)
5.18(8/9)

4.85(12/26)
4.07(8/8)

7.75(6/13)
6.90(2/21)

7.10(7/11)
6.55(1/3)

6.41(5/30)
5.96(1/24)

5.93(7/31)
4.82(1/28)

6.31
6.25
6.24
6.26 '
6.18

5.65
5.62
5.86
5.93
5.80

1969 - High
Low
1969 - July

Aug.

<

11 /
18
25
1
8|>/

1

7.68
7.52
7.58
7.75
7.57

7.08
7.10
7.10
7.05
• 7.00

I

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.
„
»




HIGH GRADE BOND YIELDS
[ i I I i i i • ! i i l | • i i i i i i ' i i i 8
•

NEW CORPORATE Aaa „

MOODY'S
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

: 1 ! ; 11
1965




1966

1967

1968

1969

1

I

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

-PERIOD
1969p
- January
February
March

I

1

1968p -

1967

STATE AND LOCAL 2
1969p

1968p

1967

2,075
2,045
2,098

1,771
1,608
1/799

1,684
1,418
2,362

i
i

1,263
988
540

1,178
1,158
1,404

1,492
1,236
1,450

April
May
June

2,707
2,102
2,560e

1,428
1,866
2,411

2,015
1,518
2,674

1
;

1,800
1,113
711

1,318
1,143
1,395

1,130
1,254
1,497

July
August
September

2,360e

2,143
1,432
1,557

2,589
2,481
1,763

;

l,0Me

1,469
1,699
1,444;

950
860
1 #340

2,129 "
1,767
2,054

2,409
1,500
2,385

2,230
1,021
1,115

975
1,401
1,182

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

5,464
6,208
6,832
6,294

3,740
3,856
4,612
4,366

• 4,177
3,881
3,150
3,557

10,882
16,015
21,965

11,672
18,504
24,798

October
November
December
1st
- 2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

6,218

7,369

Excluding finance companies 3
,1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1
2
3

5,308
6,063
6,584
5,859

20,973

Year

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

j

2,791
3,624

<
j
J

7,956
12,008
16,574

8,059
11,209
14,766
-

23,814

I
j

Securities and Exchange Commission estimates of gross proceeds.
-Investment Bankers^Association of America estimates of principal amounts.
Total gross proceeds excluding offerings.of sales and consumer finance
companies v




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

QUARTER
OR
MONTH

TOTAL

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

1968 - I
II
III
IV
1969 - I
lie/

5,178
5,705
5,133
5,951
6,218

' 2,465
3,105
2,606
2,555
2,657

7,369

3,397

1, 724 .
1, 644
1 361
1 922
1 540
1 ,775

1968 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
Maye/
June e/
July e/

2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,075
2,045
2,098
2,707
2,102
2,560
2,360

1,340
1,244
637
727
1,009
939
607
980
842
835
1,267
920
1,210
1,360

685
528
400
433
595
362
965
636
395
509
634
491
650
500

1

313
172
124
113
215
n.a.

989
956
1,166
1,474
2,023
2,196

1

385
372
396
398
525
466
483
460
808
755
805
691
700
500

.

52
47
49
28
24
49
40
103
74
38
50
28
n.a.
n.a.

584
758
1,037
902
1,355
1,336
239
605
211
221
365
211
326
376
578
401
436
500
400
200

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1
i

1,
,907
1, 703
1, 657
1,
,712
1,
,407
1 ,415

1 ,442
,244
1,
,160
1:
,435
1,
1 ,346

422
536
490
319
473

1,407
2,223
1,825
2,483
2,993

1 ,666

421

3,832

767
843
362
453
640
421
651
403
513
491

507
239
446
475
674
443
319
627
315
404
739
377
550
370

239
239
95
156
115
162
41
186
56
231

898
822
530
472
700
741
1,044
860
1,161
972

44
197
180
300

1,409
953
1,470
1,215

515
575
360
475

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.
Note: May 1969 figures are Securities and Exchange Commission estimates revised by the Federal
Reserve Board.




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

TYPE'

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

August 1 through August 8, 1969
COUPON
MOO MY'
RATI: OR
01TKRRAT 1 N<
M . I 1..TFR- •
INC,
Y11-1,1)
1 ST COST

Corporate
Inc.
Florida Power Corporation
Diamond Shamrock Corp.
Metropolitan Edison Co.
American Investment Co.




Conv. sub.debs.
1st mtg.
S.F. debs.
1st mtg.
Notes

15. 7
35.
,0
,0
45.
28.
,0
20.
,0

1989
1999
1994
1999
1989

6
7-7/8
7-3/4
8-1/8
8-3/4

6. 00
.75
7,
.75
7,
8,
.00
8.
,80

N.R.
Aa
A
A
N.R,

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

August 1 through August 8. 1969.
COUPON
RATE OR
MOODY'S
iWKRNET INTERi.;
;<
RATING
EST COST
j VILLI)

State & local Government
Louisiana State Bd. Comm.
Baltimore Co., Maryland
Georgia Highway Authority
San Francisco Bay Area
Rapid Transit Dist.,
California
Cook Co., Illinois
Illinois Building Auth.
Texas, State of

Bonds
G.O,
Rev.

15.0
20.0
18.5

1970-84
1971-1999
1980-94

5.59
5.90
5.93

5.20-5.50
5.20-6.25
5.50-6.00

A-l
A
Aa

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

72.0

48.1
14.0

1972-90
1970-88
1969-88
1979-1998

5.84
5.99
5.99
5.42

5.20-5.85
5.10-5.90
5.00-5.90
5.20-7.00

Aa
A
Aa
Aaa

28.2

1973-90

7.80

7.80

Aaa

12.0

Other
Intercontinental, Overseas
Bulktank Corp.
tier. Marine
Bds.

Bights offering.
Includes corporate and other security offerings of $15 million and
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes gum 11 obligation;
Rev.-Ut., revenue obligations secured only by income from public utilit
Rev.-Q.-lit., revenue bonds secured only by income from quas i -ut i 1 i t i es;
Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent. revenue
bonds secured, solely by lease payments.
Includes foreign government and International Bank for Reconstruction
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
As of

ISSUER

TYPE

-

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING .

Corporate
Collins & Aikens
Food Fair Stores Inc.
J. J. Newberry Company
U.S. Bancorporation
Vernitron Corporation
Carolina Tel. & Tel.Co.
Gas Service Company
Evans Products Company
Ampex Corporation
Philadelphia Electric Co.
Beneficial Standard Corp.
Hublein Inc.
Great American Mtg.
Investors
American Elec. Pwr. Company
Investment Properties
Association
National Health Enterprises
Inc.
*Iowa-Illinois Gas & Elec.
Company
"Pacific Northwest Bell
Telephone Co.
Long Island Lighting Co.
Georgia Power Company
Georgia Power Company
Southwestern Bell Telephone
Company .
*Ohio Edison




15.0
25.0
20.0
25.0
15.0
45.0
15.0
60.0
60.0
50-80.0
15.0,
50.0

August
August
August
August
August
August
August
August
August
August
August
August

11
11
11
11
11
11
12
12
12
13
13
13

Benf. int.
Com. stk.

26.4
92.7

August
August

15 (rts. exp.)
18

Conv. debs.
Conv. debs.
Conv. debs.
Conv. sub. debs.
Conv. debs.
Debs.
1 s t mtg.
Debs.
Conv. sub. debs.
Bonds
Conv. debs.
Debs.

Bonds

78.8

August

18

Debs.

15.0

August

18

Bonds

20.0

August

19

Debs.
Bonds
Bonds
Pfd. stk.

75.0
30.0
65.0
15.0

August
August
August
August

20
25
26
26

Sept.
Sept.

9
16

Debs.
Bonds

150.0
40.0

r

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
LIUUCUI
no i nuftuo w
AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
TYPE
OF OFFERING
OF
DOLLARS)
Cfofo £ 1/Sr»o1 /IrHrommcnf
_
August 12
Rev.-Rent.
Wichita, Kansas
August 12
B:5
G.O.
Mobile, Alabama
August 12
100.0
G.O.
Peimasylvania, State of
August 12
20.0
G.O.
Louisiana St. Bond Coram.
Connecticut Health & Ed.
Fac. Authority
. Los Angeles Dept. of Wtr.
and Pwr., California
Kalamozoo School Dist.,
Michigan
*Broward Co. Special Tax
Sch. Dist., Florida
New Jersey, State of
^Minnesota, State of
Baltimore, Maryland
W i s c o n s i n State Agencies
-Bldg. Corporation
*Dade Co. Bd. of Public
Instruction, Florida
*Bay City Sch. Dist., Mich,
*Oregon, State of
*Jefferson Parish, La.
*St. Louis Co., Missouri
*Newport News, Virginia
2/
Other —
*Federal Home Loan Bank
* Ontario (Province of)

*
1
2

Rev.

12.1

August

13

Rev.

18.0-

August

14

G.O.

12.3

August

18

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

25.0
37.5
37.5
35.0

August
August
August
August

19
19
21
26

Rev.

23.0

August

26

G.O.
G.O.
Bonds
Bonds
G.O.
G.O.

13.4
10.5
47.0

August
August

27
28

Sept.
Sept.
Sept.
Sept.

3
10
11
16

Bonds
Debs.

201.0
100.0

August
August

13
18

10.0

13.0

16.0

Included in table for first time.
Includes corporate and other is.sues 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.




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

S&P
500 3

1967 - High
Low

97.59(9/25)
80.38(1/3)

TRADING; VOLUME 2

D.J. - IND.

AMEX

4

' NYSE

AMEX

943.08(9/25)
786.41(1/3)

24.52(12/29)
13.78(1/27)

60.7(8/14)
27.41(1/6)

33.5(10/27)
8.3(1/6)

1968 - High
Low

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

33.25(12/20)
22.00(3/22)

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

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

1969 - High
Low

105.94(5/16)
91.96(7/25)

968.85(5/14)
801.96(7/29)

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

72.75(5/2)
32.8(4/4)

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

852.25
853.09
818.06
826.59
824.46

27.43
27.10
26.16
26.20
26.33

51.8
48.9
41.0
70.3
48.9

1969 - July 11 95.77
18 94.95
25 91.96
Aug. ; 1 93.47
8j)'93.94

20.3
19.0
13.5
28.0
17.6

/
1

2

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

Highs and lows are

Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August'8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
' was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. Beginning January 3, 1969, the exchanges have been
open 4 hours each day, 20 hours per week. NYSE is New York Stock Exchange;AMEX is American Stock Exchange.

3

1941-43 = 10.

4

Average dollar value of shares listed.




15

STOCK PRICES AND TRADING VOLUME
AMEX

D.J.
(Ind)

Weekly

S&P
(500)

1300

126

1220

AMEX PRICE LEVEL INDEX

130

1260

STOCK PRICES

122

1180

118

1140

114

1100

110

1060

106

1020

102

980

98

940

94

900

90

860

86

820

82

780

AMEX TRADING VOLUME

(TOTAL FOR WEEK)

- NYSE TRADING VOLUME, (TOTAL F R WEEK)
O

V
1965

1966




1967

1968

78

740

74

TABLE 9: Security Credit

END OF PERIOE

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

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:
1968 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

6,690
6,500
6,460
6,390
6,250
6,200
6,200

2,410
2,420
2,490
2,520
2,560
2,630
2,710

9,100
8,920
8,950
8,910
8,810
8,830
8,900

8,728
8,861
8,489
8,724
8,859
9,029
9,970

3,293
3,269
2,984
3,126
3,407
3,419
3,717

5,435
5,592
5,505
5,590
5,452
5,610
6,073

1969 - Jan.
Feb.
Mar.
Apr.
May
June f /
>

5,930
5,750
5,590
5,570
5,670
5,400

2,750
2,810
2,780
2,760
2,770
2,740

8,680
8,560
8,370
8,330
8,440
8,140

9,042
9,148
8,318
8,044
8,474
8,211

3,597
3,647
3,294
3,077
3,084
3,086

5,445
5,501
5,024
4,967
5,390
5,125

1968 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

50
-190
-40
-70
-140
-50

50
10
70
30
40
70
80

100
-180
30
-40
100
20
80

460
133
-371
235
135
170
761

229
-24
-285
142
281
12
298

231
156
-86
85
-138
158
563

1969 - Jan.
Feb.
Mar.
Apr.
May
June £ /
.

-270
-180
-160
-20
100
-270

40
60
-30
-20
10
-30

-220
-120
-190
-40
110
-300

-120
50
-351
-217
7
2

-628
-9
-477
-57
423
-265

Change in
Outstanding:

1

2
3

--

.

;

-928
-51
-830
-274
430
-263

^

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.
*
j
NOTE: With the exception of bank loan data, figures are supplied by tho New York
J
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 I
regulated or not.
\




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

.

DATE

'

'

•

I

MUTUAL SAVINGS BANKS'
NET.
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
RATE 1
FLOW

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

'
j•

NET
N EW
MONEY 2

Not Seasonally Adiusted
1966
1967
1968

2,557
5,082
4,186
363
453
186

1968 - May
June
July
1969 - May
June 2/
July £/

\

308
307
-50

4.9
9.3
7.0

227
2,376
1,143

__

—

300
-111
64
227
-281

641
1,342

• —

—

.1
2
3

3.8
9.4
6.3

-325
8,505
3,819

722
158
-606

1,120
2,075
-419

—
--

1,022
47
-542

6Q2
196

949
1,649
-1,151

-—

743
966
1,276
350
855
635
36

4.6
5.9
7.8
2.1
5.2
3.8
0.2

--

--

Seasonally Ad lusted

'

1969 - Jan.
Feb.
Mar.
Apr.
May
June £/
July £/

6,141
15,769
11,582

——

-1,101

•

-552
6,129
2,676

__

757
1,622
-605

——

3.2
9.4
5.9

3,584
10,687
7,396

220
384
382
160
357
161
67

4.1
7.2
7.1
3.0
6.6
3.0
1.2

——
—— .
-—
--

523
582
894
, 190
498
474
-31

4.8
5.3
8.1
1.7
. 4.5
4.3
-0.3

I
T—

---

--

829
-85
n. a.

—--

--

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 967„ 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.-







if dollars

2000
1600
TOTAL

1200
800
400

+

0

400

1200
SAVINGS & LOANS

800
400

+

0

400

800
MUTUAL SAVINGS BANKS
400
' +

0

400

TABLE 11:. Mortgage Commitments at Selected Thrift Institutions

^ DATE

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb..
Mar.
Apr.
May
June JJ/

TOTAL

1

NET CHANGE
OUTSTANDING COMMITMENTS.
1
ALL
ALL
MUTUAL
|
SAVINGS
TOTAL
• SAVINGS & '
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Seas onally Adjusted) 1/

MUTUAL
' SAVINGS
BANKS
(N.Y. STATE]

8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1 .

-.13
-.04
.24
.16
.14
.35
.27
-.01

-.16
-.10
.16
.10
.22
.10
.08

. 02
.06
.08
.16
.04
.13
.17
-.10

9.9
10.1
10.3
10.5
10.3
10.2

6.7
6.9
7.0
7.2
7.1
7.0

3.2
3.2
3.3
3.3
3.2
3.2

.15
.25
.17
.19
-.19
-.08

.08
.22
.09
. 18
-.10
r . 03

•07
.03
. 08
.01
-.09
-.04

--

t

1

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Net changes are derived directly from unrounded outstandings,
levels as reported and after seasonal adjustment by Federal Reserve. Subtotals
m^y not add to totals because of rounding. Mutual Savings Banks and total data
include building loans beginning August 1967.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

10
TOTAL

S&L'S

N Y. MSB'S

\

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

)

1970

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
• SAVINGS
COMMERCIAL
LOAN
BANKS
BANKS
ASSOC.

1965 - I
II
III
IV

4,761
6,365
6,469
6,303

4,813
6,431
6,403
5,947

823
1,749
1,805.
1,322

1966 - I
II
. Ill
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

975
1,656
1,300
774

1967 - I
II
III
IV

2,617
4,868
6,285
6,246

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

1968 - Apr.
May
June.
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,978
2,238
2,125
1,851
1,982
2,000
2,314
2,088
2,483

1,732
2,003
1,905
1,699
1,841
1,892
2,153
1,943 2,311

616
616
616
533 533
746
807
706
404

1969 - Jan.
Feb.
Mar.
Apr.

1,750
1,770
1,945
2,202
2,165
n. a.

1,549
1,549
1,740
2,011
1,980
n.a.

500
500
500
600
600
600

June

965
. 946
1,072
1,078

LIFE
INSURANCE
COMPANIES

FNMA-GNMA
-52
-66
66
356

1,165
1,030
1,066
1,600

753
513
739
715

1,683
1,651
373
54

1,219
1,277
1,056
1,044

795
551
508
469

770
786
839
,758

486
2,119
2,595
2,320

860
657
521
869

350
106
579
762

160
203
219
248
233
221
313
310
340
'

1,860
2,706
2,460
-1,947

879
957
901
718
874
810
845
732
903

88
216
169
200
201
115
188
195
664

246
235,
220
152
141
108
161
145
172

134
150
125
181
159
n.a.

201
221
205
191
185
222

293
228
198
. 204
233
216

622
671
917
1,026
988
1,220

.

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
aadf 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.
FNMA includes GNMA after September 1, 1968.




1

NET CHANGE IN MORTGAGE HOLDINGS
Monthly

3.0

2.5

TOTAL, INCL. FNMA - GNMA

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1968

1.0

1969

24

-

/

TABLE 13: Net Increases i Mnrt.apno Debt Outstanding
n
Billions of dollars, SAAR 2
RESIDENTIAL

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

1

MULTI-AND
COMMERCIAL

FARM

' QUARTER

TOTAL

1965 - I
II
III
IV

24.9
25.2
25.8
26.6

18.6
18^5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

8.0
8.1
8.4
7.9

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
.'9.5

14.7
12.1
8.3
7.2

4.3
3.5
2.6
2.3

6.9
6.5
5,4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

15.5
1967 - I p
20.4
Hp
III , 26.3
IVp 28.6

9.9
13.7
19.1
20.9

6.8
10.5
15.3
16.5

3.0
3.3
3.8
4.4

3.8
4.8
4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

26.9
25.8
25.8
31.3

18.2
17.9
17.7
21.5

15.4
14;8
14.1
17.0

2.8
3.1
3.5
4.5

6.2
5.7
6.4
8.1

9.4
8.7
10.2
11.8

2.4
2.3
1.8
1.7 .

1969 - Ip 1 30.2
!
IIP 27.1

21.1
19.3

18.0
16.r

3.2
3.2

7.1
5.9

10.6
9.0

2.0
1.9

1968 - IP
IIP
III:
IVp

1

2

2.2
2.1
2.2 2.4

I
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 non-farm mortgage debt by type of property, where not available,
and interpolations and extrapolations, where required, estimated by Federal
H o m e Loan Bank Board and the Federal Reserve."
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.




|
|
*
g
f
i
?;
{
1

'
\

25

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED,

IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
\
ACCEPTED
1-YEAR11
1-YEAR 1
909066TOTAL
TOTAL
& OVER
MONTH & OVER
DAY
DAY
MONTH
OFFERED

May

5
12
19
26

170.8
210.4
236.2
263.0

84.4
85.0
83.3
96.1

6.7
9.3
13.8
12.3

58. 2
55. 9
51. 0
67. 8

19.5
19.7
18.5
16.0

7.89
7.87
7.86
7.88

7.89
7.88
7.87
7.90

7.82
7.80
7.80
7.83

June

2
9
16
23

304.6
291.6
409.7
304.1

103.0
100.2
100.5
124.3

15.3
21.3
15.4
8.7

65. 5
57. 7
66, 8
,5
92.

22.1
21.2
18.3
23.1

7.91
7.98
8.30
8.36

7.93
8.00
8.25
8.40

7.85
7.91
8.14
8.26

July

7
14
22
28

\195.5
177.1
250.9
298.2

121.0
129.7
130.9
1291.6

24.1
17.4
19,1
15.9

85.
,1
100,
,9
,5
93,
92,
,4

11.7
11.5
18.3
21.3

8.42
8.39
8.30
8.25

8.47
8.40
8.31
8.26

8.31
8.29
8.19
8.15

Aug.

4

12514 19.1
(130.0); 3/

78 .9

27.4

8.27

8.28

8.16

!

282.5

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 seller's option, and at any
time within the specified.period. Bids on proposed homes relate 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.




,

FNMA WEEKLY "AUCTION" RESULTS

*

' •

:

$ Millions
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

1 YEAR
AND OVER

60

6 MONTHS
20

3 MONTHS

Per cent
8.6

-IMPLICIT YIELD
6-MONTH COMMITMENTS

\

-

y

1

• 1

1

• 1'

1

1

1

1 '

1

1 • 1

!

l:

1

1

•I

1

I

8.0

—

"

-

7.4

I

6.8
$ Millions

TOTAL BIDS RECEIVED

TOTAL BIDS
ACCEPTED
JUNE

AUG.

OCT.

1968




DEC.

FEB.

APR.

JUNE

1969

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS
DATE

1968

way
" June
July
Aug.
Sept.
Oct.
Nov.

Dec.

1969 - Jan,
Feb.
Mar.
Apr.
May £ /

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1.364
1.365
1,531
1,518
1,592
1,570
1,733
1,509

838
790
904
867
944
965
905
922

140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

1,878
:,686
,584
.,563
,505

1,066
975
838
797

526
575
627
651
648
605
828

585
812

711
756
766
625

101.5
90.0
131.9
159.0
155.2

UNADJUSTED
TYP OF FINANCING

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

20.5
19.8

5.5
5.0

20.9

4.8

114.9
113.1
116.2
110.9

21.4
17.5
16.3

5.3
4.2
4.4

114.0
105.4
75.7

1,280
1,281
1.289
1.290
1,393
1,378
1,425
1,463

14.2 3.8
13.2 3.5
18.9 3.9
23.0 4.4
21.1 4.3
71. 5 4.

83.5
73.3
109.1
131.6
129.8
118.9

1,403
1,477
1,421
1,502
1,328
1,326

18.8 4.9

18.6 4.6

111.1

<80
Juns&Z. M L .
-Zfifiu
oks.n
J&SL.
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.
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.




PRIVATE HOUSING STARTS AND PERMITS
Monthly,annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.2

BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR
1957 - High
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High .
1967 - High
Low
1968 - High
Low

5.63
5.35
6.26
5.43
6.73
n. a.
n. a.
n.a.
n. a.

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

1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June

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

7.50
-7.99
8.05
8.06
8.06
8.35

1

NEW
SPREAD BECONVENTIONAL : TWEEN YIELDS 'Aaa CORPORATE
ON CONV. &
MORTFHA MORTBONDS
GAGES
4
3
GAGES
6.00
.47
. 4.94
5.55
, .15
3.65
5.25
6.30
.23
5.80
.25
4.41
6.70
.30
5.82
6.65
6.51
.11
6.40
-.12
5.18
7.30
6.79
.02
6.15
6.75
-.27
7.40
7.55
7.60
7.65
7.75
7.75
8.00

-.10
.

-

—

-.39
-.40
-.31
-.31
-.35

6.79
6.92
6.91
7.37
7.17
7.22
7.58

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
. 1.69
.77
1.16
•
•
1.28
.27
1.20
.26
.71
•

•

1.08
.68
.89
.84
.77

Neither mortgage nor bond yields include allowance for servicing costs which artmuch 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 transactionsi" 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 the 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 office
. cities. 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 line indicates this change in the series..
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly
1

9

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES
/ V \ /

Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis points

200

100

1962




1964

1966

r

1968

1970

TABLE 17:
NEW HOMES

DATE

CON- FEES &
TRACT CHARGES EFFEC- MATURITY
(PER ' TIVE
(YEARS)
RATE
CENT) RATE
(PER
CENT)
3
2

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

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)

1968

6.88
7.04
Z.10
7vl0
7.09
7.07
7.09

0.95
0.85
0.87,
0.87
0.88
0.84
0.89

7.03
7.17
7.24
7.24
7.23
7.21
7.23

25.4
25.5
25.5
25.5
25.6
25.4
25.9

74.4
73.7
73.6,
74.2
74.5
74.1
74.0.

22.3
22.2
22.6
22.1
22.7
22.5
24.7

6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.86
0.83
0.85
0.82
0.84
0.82
0.85

7.12
7.23
7.26
7.25
7.22
7.21
7.23

22.6
22.5
22.7
22.6
22.5
22.7
23.3

73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.2
18.5
18.6
18.3
18.3
18.9
20.4

7.16
Jan.
Feb. r 7.26
Mar.
7.32
7.47
Apr.
May £/ 7 . 5 0
June £/ 7 . 6 1

0.84
0.81
0.93
0.96
0.88
0.85

7.30
7.39
7.47
7.62
7.65
7.75

25.6
25.6
25.8
25.4
25.8
25.5

73.6 . 2 4 . 1
73.3
23.5
73.8
24.0
72.6
24.8
73.2
25.0
73.0
"25.0

7.18
7.28
7.35
7.46
7.54
7.63'

0.86
0.86
0.84
0.85
0.83
0.85

7.32
7.42
7.49
7.60
7.6b
7.73

22.8
22.9
23.0
23.0
22.7
22.9

72.6
72.8
72.7
71.8
71.9
71.7

20 0
19 6
20 2
19 9
19 7
20.1 ;

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

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exelude 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.




|
^
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K
§
£
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}

CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES

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