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DECONTROLLED AFTER SIX MOHTBS L.5.8 Confidential (F.R.)

AUG

uuy

A u g u s t 18. 1969.

Qap1^

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 Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

Revised
Not available




• 3

TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - July

Aug.

CORPORATE BOND MARKET
VOLUME2
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
22£/

7.75
7.57
7*53
n. a.

7.05
7.01
6.96
n.a.

243
148
208
220e

WEEK ENDING: .

1969 - July 4
.11
18
25
Aug.

YIELDS
MOODY'S
SEASONED
NEW ISSUE1
Aaa

1
8
15
22£y

YIELDS
BOND BUYER
MOODY * S
SEASONED -20
SEASONED
Aaa
BOND INDEX
5.55
5.52
5.52
5.62

5.68
5.65
5.62
5.86

5.78
5.70
5.73
n.a.

5.93
5.80
5.91
n.a.

49 ^
100
86
77

515
771
424
532

97
99
80
. n.a.

467
482
562
n.a.

MUNICIPAL.BOND MARKET
!
.
VOLUME'
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS
129
188
347
222
r/141
r/268
230
200e

57
58
70
57
. .

690
653
656
763

97
80
64
n.a.

542
405
392
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:

See footnotes to Table 3




TABLE 2: Details on Inventories
DATE
OFFERED

15.0
, 80.0
45.5

8/14
8/13
8/12

DATE
OFFERED I RELEXSED
8/6
7/16

8/15
8/15

DATE
1969 - July
Aug.

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

AMOUNT
(MIL. $)

18
25
1
8
15£/

Gas Service
Philadelphia Electric
Carolina Telephone

8-1/8
8
7-3/4

8.20
7.79
7.75

A
Aaa
Aa

5 yrs.
5 yrs.
5 yrs.

"

ESTIMATED PROPORTION SOLD
\
0
\

75%
. 60%

• ) .

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON
ISSUER
AMOUNT
YIELD IN YIELD CALL PROT. PORTION RELEASED
20.0
16.0

American Investment
Wisconsin Gas

INVENTORIES 1
MUNICIPALS
IN SYNDICATE
BLUE LIST
|
463
180
203
507
421 .
54
59
r/393
367
112

8-3/4
8-1/2

8.80
8.40

20
30

N.R,
Baa

CORPORATES
IN SYNDICATE
78
57
26
8
42

10 yrs.
5 yrs.

30%
20%

'

1
N.C. - No call protection.
1
All figures in millions of dollars. $ lue 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.



BONDS IN SYNDICATE
Millions of dollars

n—i—i—i—i—i—i—i—[—i—r

—i—i—i—|—i—i—i—i—i—i—r
CORPORATE BONDS IN SYNDICATE

200

100

i . 111
1
~i
i—i—r—i—i—r~i—i—n—i—i—i—i—r
MUNICIPAL B O N D S IN SYNDICATE

lli

I.III.I i

0

i n — i — r — r

300

200

100

SEPT.

DEC.

'67




JUN.

1968

SEPT,

DEC.

MAR.

JUN.

1969

SEPT.

\
TABLE 3: High Grade B r d Yields
oi
•NEWCORPORATE
Aaa 1

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
. . 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(12/7)
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)

1969 - High
Low

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)

7.68
7.52
7.58
7.75
7.57
7.53

7.08
7.10
7.10
7.05
7.00
6.96

6.31
6.25
6.24
6.26
6.18
6.21

5.65
5.62
5.86
5.93
5.80
5.91

1969 - July
Aug.

V
2

11
18
25
1
8
15R/

New corporate issues, with call protection, adjusted (as described.in
footnote 1 of Table 1) to a Aaa basis.
Weekly average of daily figures. Average term of bonds included is

22-24 y e a r s . . .
3
4

,

Weekly average of daily figures.
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

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

1965




1966

1967

1968

1969

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

CORPORATE

PERIOD
1969p

STATE AND LOCAL 2

1

1968p

1967

1969 p

1967

196Bp

January
February
March

2,075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

1
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 i
. 1,518 1
2,674 j

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,050e

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

7,956
12,008
16,574

8,059
11,209
14,766

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

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

6,218
7,369

|
1

2,791
3,624

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

23,814

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.




:

;

TABLE 5: New Corporate Security Issues, Type of Issue and issuer
( n millions of dollars)
I

QUARTER
OR
MONTH 1968 - I
II
III
IV
1969 - I
lie/
1968 - June
July
Aug.
Sept.
Oct.
^
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May e/
June e/
July e/
1

TOTAL
1,T?8
5,705
5,133
5,951
6,218
7,369
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

. GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
MEMO:
AND
BONDS
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
MFG.
STOCK FOREIGN | CONVERTIBLE
PLACED
OFFERED
2,465
3,105
2,606
2,555
2,657
3,397
1,340
1,244
637
727
1,009
939
607
980
842
835
1,267
920
1,210
1,360

1,724
1,644
1,361
1,922
1,540
1,775
685
528
400
433
595
362
965
636
395
509
634
491
650
500

989
956
1,166
1,474
2,023
2,196
385
372
396
398
525
466
483
460
808
755
805
691
700
500

313
172
124
113
215
n.a.
52
47
49
28 :
24
49
40
103
74
38
50
28

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

1,
,907
1, 703
,657
1,
,712
1,
,407
1,
1 ,415
767
843
362
453
640
421
651
403
513
491
515
575
360
475

1,442
1,244
1,160
1,435
1,346
1,666
507
239
446
475
674
443
319
627
315
404
739
377
550
370

COMMUNICATIONS

OTHER
ISSUERS1

422
536
490
319
473
421

1,407
2,223
1,825
2,483
2,993
3,832

239
239
95
156
115
162
41
186
56
231
44
197
180
300

898
822
530
472
700
741
1,044
860
1,161
972
1,409
953
1,470
1,215

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 f r New Capital
o
(Other than U.S. Treasury)1

August 1 through Ai

ISSUER

TYPE 2

AMOUNT
(MILLIONS

OF

. MATURITY

DOLLARS)

. COUPON
RATI: OR
NK'I ' l.'JTER1 ST COST

/

tJX-1269.

MOODY 1;
OFFERING X . RAT INC
YIELD

Corporate
^Southeast Baricorporation,
Inc.
Florida Power Corporation
Diamond Shamrock Corp.
Metropolitan Edison Co.
American Investment Co.
Carolina Tel. & Tel. Co.
Evans Products Co.
Philadelphia Electric Co.
Gas Service Co.
*Great American Mtg.
Investors




Conv. sub.debs.
1st mtg.
S.F. debs.
1st mtg.
Notes
Debs.
Conv. sub.debs.
1st mtg.
1st mtg.
Benf. Int.

15.7
35.0
45.0
25.0
20.0
45.0
50.0

80.0
15.0

26.4

1989
1999
1994
199&
1989
1999
1994
1975
1989

V

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

8-1/8

6.00
7.75
7.75
8.00
8.80
7.75
6.25
7.79
8.20

N.R.

Aa
A
A

N.R.

Aa
B
Aaa
A

TABLE 6: Large Long-term Public Security Issues f r New Capital (continued)
o
(Other than U.S. Treasury)1
/
(continued)
August 1 through August 15. 1969
TYPE '

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFKERi;;<;

MOODY'S
RATING

YIELD

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
Pennsylvania, State of
Louisiana St. Bond Comm.
Wichita, Kansas
Wichita, Kansas
Mobile, Alabama
Los Angeles Dept. of Wtr.
& Pwr., California

Bonds
G.O.
Rev.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O. Rev.-Rent.
Rev. -Rent.
G.O.
Rev.

Other
Intercontinental, Overseas Ker. Marine
Bulktarik Corporation
Bds.
Federal Home Loan Bank
Bds.

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

72.0
12.0
48.1
14.0
100.0
20.0
7.8
4.7
10.0

1972-90
1970-88
1969-88
1979-1998
1972-99
1970-89
1994
1972-84
1970-84

5.84
5.99
5.99
5.42
5.84
5.88
6.98
6.98
6.58

5.20-5.85
5.10-5.90
5.00-5.90
5.20-7.00
5.20-6.15
5.10-5.88
7.00
6.25-6.75
5.70-6.50

Aa
A
Aa
Aaa
Aa
A-l
Aa
Aa
Baa

18.0

1970-99

6.01

5.10-6.00

Aa

28.2
201.0

1973-90
1974

7.80
7.65

7.80

Rights 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 obligati
'<ev.-Ut., revenue obligations secured only by income from public utilities;Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1itius; Rev.-S.
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




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

ISSUER

AMOUNT
(MILLIONS
OF
DOLLARS)

Ag gf Aumast 15, 1959

APPROXIMATE DATE
- OF OFFERING

Corporate
Ampex Corporation
60.0
Conv. sub. debs.
15.0
Conv. debs,
Collins & Aikens
Conv. debs
25.0
Food Fair Stores Inc.
Conv. debs,
Vernitron Corporation
15.0
National Health Enterprises
Inc.
Debs.
15.0
Investment Properties Assoc. Bonds
78.8
Com. stk.
92.7
; American Elec. Pwr. Co.
20.0
Iowa-Illinois Gsls & Elec. Co, 1st mtg.
Pacific Northwest Bell
Telephone Co.
Debs.
75.0
*Rochester Gas & Elec. Corp. 1st mtg.
30.0
U. S. Bancorporation
Conv. sub. debs.
25.0
Long Island Lighting Co.
1st mtg.
35.0
Georgia Pwr. Company
65.0.
1st mtg.
Georgia Pwr. Company
Com. stk.
15.0
*First & Merchants' Corp.
Conv. sub. debs.
20.0
*Duke Power Company
First & Ref.
75.0
Hublein Inc.
Conv. sub. debs.
50.0
Southwestern Bell Tel. Co.
Debs.
150.0
.
*Consolidated Edison Co. of
Com. stk.
50-60.0
New York .
^International Bank
Conv. debs.
30.0
. Ohio Edison
Bonds
40.0
*Gulf States Utilities Co.
25.0
1st mtg.
*North Indiana Public Serv.
20.0
Company
1st mtg.
*New England Pwr, Co.
15.0
1st mtg.




August
August
August
August

18
18
18
18

August
August
August
August

18
18
18
19

August
August
August
August
August
August
August
August
Sept.
Sept.

20
21
25
25
26
26
27
27
1
9

Sept.
Sept.
Sept.
Sept.

12
15
16
18

Sept.
Sept.

18
22

TABLE 7: Forthcoming Large Long-term Public Security Offerings f r New Capital
o
(Other than U.S. Treasury)1
(continued)
AMOUNT
(MILLIONS

ISSUER

TYPE

OF

A s gf August

I?6?

APPROXIMATE DATE

OF OFFERING

DOLLARS)

State & local Government
Kalamozoo School Dist.,
Michigan
•Broward Co. Special Tax
Sch. Dist., Florida
New Jersey, State of
Minnesota, State of
Baltimore, Maryland
Wisconsin, State Agencies
Bldg. Corp.
-Dade Co. Bd. of Public
Instruction, Florida
Bay City Sch. Dist., Mich.
Oregon, State of
Jacksonville Elec. Auth,,
Florida
•Newark, New Jersey
•Washington State Bd. for
Community Ed.
Jefferson Parish, La.
St. Louis Co., Missouri
Newport News, Virginia
•Alaska

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.
G.O.

13.4
10.5
27.0

August
August
Sept.

27
28
3

Rev. bds.
V.P.

22.0
20.5

Sept.
Sept.

3
9

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

22.0
10.0
13.0
16.0
10.2

Sept.
Sept.
Sept.
Sept.
Sept.

9
10
11
16
.17

100.0
200.0

Aug.
Sept.

18
24

Other
Ontario (Province of)
•Housing Assistance Admin.

Debs.
Bonds

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.




T A B L E 8: Stock Prices and Volume
TRADING; VOLUME 2

STOCK PRICES 1
S&P O
500 3

DATE

1967 - High
Low

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

D.J. - IND.

;

AMEX4

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
820.88

27.43
27.10
26.16
26.20
26.33
26.37

51.8
48.9
41.0
70.3
48.9
34.8

20.3
19.0
13.5
28.0
17.fi
15.6

1969 - July 11
18
25
Aug.
I
8
-

95.77
94.95
91.96
93.47
93.94
15
£ ^94.00

1

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

2

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.




Highs and lows are

15

STOCK PRICES AND TRADING VOLUME
Weekly

AMEX
37
35

; STOCK PRICES
AMEX PRICE LEVEL INDEX

S&P's 5 0 0

D.J. IND.

AMEX TRADING VOLUME

(TOTAL FOR WEEK)

mmwm
,,i

.

tiiim
.

j

-NYSE TRADING VOLUME

|

(TOTAL FOR WEEK)

.ii,

s1 - l
•£i : 5 «

iiiii.
iiiii

. jiii
iii

HI.

I'M:!

20

s a!sl f i i |
t
l !

0

ililllilllllllllUl'.i llli

1965

1966




1967

1968

1969

TABLE 9: Security Credit

END OF PERIOD

CUSTOMERS'
N E T DEBIT
BALANCES

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

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

1969 - Jan.
Feb.
Mar. "
Apr.
"May
June j /
>

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

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

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

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

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

,

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

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

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

460
133
-371
235
135
170
761

229
-24
-285
142
281
12
298

231
156
-86
' 85
-138
158
563

-928
-51
-830
-274
430
-263

-120
50
-351
-217
7
2

-628
-9
-477
-57
423
-265

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

50
-190
-40
-70
-140
-50

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

-270
-180
-160
-20
100
-270

50
10^
70
30
40
70
80
40
60
-30
-20
10
-30

100
-180
30
-40
100
20
80
-220
-120
-190
-40
110
-300

i

Margin debt, as reported by the N e w 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."
T h e 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 o f 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,




>

. TABLE 10: Savings Flows a Nonbarik Depositary Intermediaries
t
($ millions)

x

<
'

SAVINGS & LOAN ASSOCIATIONS

2,557
5,082
4,186

DATE

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

4.9
9.3
7.0

227
2,376
1,143

3,584
10,687
7,396

363
453
186

-—

300
-111
64

——

227
-261
-295

SHARE CAPITAL
ANNUAL
NET
GROWTH
FLOW
RATE 1 ,

NET
NEW,
MONEY2

TOTAL
DEPOSITS
1
ANNUAL .
NET
GROWTH
RATE 1
FLOW

1

NET
NEW
MONEY 2 ;

N o t Seasonally Adiusted
1966
1967
1968
1968 - May

June
July
1969 - May

June j /
>
July £/

. 308
.
307
-160

—

,

,
!

757 /
1,622
-605
641
1,342
-1,101

3.2
9.4
5.9
__
—*
*
—
__
——
--

-552
6,129
2,676

6,141
15,769
11,582

722
158
-606

1,120
2,075
-419

602
196
-1,102

949
1,649
-1,261

3.8
9.4
6.3

-325
8,505
3,819

.
--

—*

•

1,022
47
-542

829
-85
•1,397
. -

Seasonally Adjusted
1969 - Feb.

Mar.
Apr.
May
June j>/
July £/ .

384
382
160 .
357
161
-43

7.2
7.1
3.0
6.6
2.9
-0.8

——
——
—•
»

582
894
190
498
474
-31

5.3
8.1
1.7
4.5
4.3
-0.3

, -——
—
--

. 966
1,276
350
855
635
-74

5.9
7.8
2.1
5.2
3.8
-0.4

m, —

.•
!

* *•

*

"

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 Bo^rd.




SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

2000
-

.

1600
A /
—

VTOTAL
-

-

1200
800

-

\

R

1

F

1

III 1

1

1 11 1 I I I M

—

400

ill
400

—

/
—

-

1200

V SAVINGS & LOANS

800

/

i

fx

-

400

400
'

•

1

1

- 1 1 1 M
1

M

1 II 1 1 1 II ! ! 1 f

MUTUAL SAVINGS BANKS

1965

1966




1967

1968

1969

TABLE 11: Mortgage Commitments a Selected T r f I s i u i n 1
t
hit ntttos

DATE

TOTAL

OVTSTA::D7::C
All.
SAVINGS &
LOAN
ASSOCIATIONS

-TT/'F.NTS
MUTUAL
SAVINGS
BANKS "
(N.Y. STATE)

I
TOTAL

NET CHANGE
ALL
SAVINGS &
' LOAN
ASSOCIATIONS

MUTUAL '
SAVINGS
BANKS
(N.Y.'STATE)

(Billions of Dollars, Seas onally Adjusted) 1/

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

8.6
8.8
9.0
9.1
9.5
9.7
9.7

5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.6
2.7
2.9
2.9
3.0
3.2
3.1

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

9.9
10.1
10.3
10.5
10.3
10.2

6.7
6.9
7.0
7.2
7.1

3.2
3.2
3.3
3.3
3.2
3.2

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

7.0

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

.06
\.08
.16
.04
,
.13
.17
-. 10

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

. 07
.03
.08
.01
-.69
-.04

-—

I

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
may not add to totals because of rounding. Mutual Savings Banks and total data
include building loans beginning August 1967.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Billions of dollars

Monthly

TOTAL

S&L'S

N.Y.-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TOTAL
INCLUDING
FNMA-GNMA

TABLE 12: Net Change i Mortgage Holdings 1
n
(millions of dollars)
FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
TOTAL COMMERCIAL
LOAN
COMPANIES
BANKS
BANKS
ASSOC.

18,197
19,988
23,807

15,874
18.191
21,399

4,705
4,639
6,677 v

196& - Apr. . 1,978
May
2,238
June
2,125

1,732
2,003
1,905

1969 - Apr.
' May
June

2,202
2,165
n.a.

1969 - Jan.
Feb.
• Mar.
Apr.
May
June

2,143
2,292
2,022
2,083
2,031
n.a.

DATE -

FNMA-GNMA

Not Seasonally Adlusted
1966
1967
1968

2,760
3,118
2,796

3,761
7,538
9,330

4,648
2,914
2,496

2,323
1,797
2,508

616
616
616

160
203
219

879
957
901

88
216
169

246
235
220

2,011
1,980
n.a.

600
600
600

204
233
216

1,026
988
1,220

181
159
n.a.

191
185
222

1,988
2,109
1,826
1,877
1,810
n.a.

691
708
636
525
531
439

104
258
130
202
179
n.a.

155
183
196
206
221
271

Seasonally Adjusted
303
269
208
253
258
217

890
874
852
897
842
1,037

- —

1/ Monthly data for commercial banks, including banks in the possessions, 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 jfrom 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.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

TOTAL, INCL. FNMA - GNMA

2.5

2.0

1.5

FINANCIAL WSTITUTIONS

1966




1967

IMS

1.0

24

•

TABLE 13: Net Increases i Morfqaoe Debt Outstanding
n

,

Billions of dollars, SAAR 2

QUARTER

TOTAL

RESIDENTIAL 2

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL
.

MULTI-AND
COMMERCIAL

FARM

4.2
4.5
4.4
4.6

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

. 24.9
1965 - I
25.2
II
III 25.8
26.6
IV

18.6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

28.3
24.2
18.4
15.6

19.0
•15.6
10.8
'9.5

14.7
12.1
8.3

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

1968 - I P
IIP
111$
!V p

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
IIp

30.2
27.1

21.1
19.3

18.0
16,1

3.2
3.2

7.1
5.9

10.6
9.0

2.0
1.9

1966 - I
II
III
IV

1

2

12

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
Home 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.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

-

Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

Z\

I

1-4 FAMILY

COMMERCIAL

IMS




1M7

IMS

TABLE 14: FNMA Weekly xxAuction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARN
90TOTAL
6TOTAL
MONTH & OVER
OFFERED
DAY

IMPLICIT YIELD 2 (per cent)
90DAY

MONTH

1-YEAR
& OVER

6-

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
92.5

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
8.2T6

July

7
14
22
28

195.5
177.1
250.9
298.2

121.0
129,7
130.9
129.6

24.1
17.4
19.1
15.9

85.1
100.9
93.5
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
11

282.5
275.2

125.4
19.1
129.3
16.7
|(130.0) 3 /

78.9
82.7

27.4
29.9

8.27
8.28

8.28
8.29

1

8.16
8.16

May
i
V

5
12

18
i
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
80
1 YEAR
AND OVER

40

6 MONTHS

3 MONTHS

Per cent
8.6

-IMPLICIT YIELD

6-MONTH COMMITMENTS

7.4

_ J

6,8

$ Millions
400

300

200

TOTAL BIDS RECEIVED

100

f

- TOTAL BIDS
ACCEPTED

JUNE

AUG. •

1968




AUG.

1969

OCT.

DEC.

TABLE 15: Private Housing S a t and Permits
trs
STARTS

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

UNADJUSTED
DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

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

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

1969 - Jan.

1,878 1,066
975
828
797
883
801
739

904
867
944
965'
905
922

Feb. ' 1,686
1,584
Mar.
1,563
Apr.
May
1,509
June £ a , 4 6 4
July £ ^1,336
;1

TYPE OF FINANCING
TOTAL

FHA

VA

OTHER

116.2
110.9
111.1
114.0
105.4
75.7

1,289
1,290
1,393
1,378
1,425
1,463

83.5

1,403
1,477
1,421
1,502
1,328
1,340
1,206

627
651
648
605
828
585

139.8
136.6
134.3
140.8
127.1
96.4

18.8
20.9
18.6
21.4
17.5
16.3

4.9
4.8
4.6
5.3
4.2
4.4

812
711
756
766
626
663
597

101.5
90.0
131.9
159.0
155.5
146.4
122.0

14.2
13.2
18.9
23.0
21.1
21.5

3.8
3.5
3.9
4.4
4.3
4.6
4.7

73.3
109.1
131;6
129.8
120.3

t

Total starts are Census estimates including farm for both permit-issuing and
noii-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. A s reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection- report, which is made before
• footings a r e 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.




PRIVATE HOUSING STARTS AND PERMITS
M o n t h l y , a n n u a l rates

Millions of units

SEASONALLY ADJUSTED
2.0

HOUSING STARTS

1.6

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

( o mr)
2 r oe

X"*

40

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

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

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

7.50

1

—

7.99
8.05
8.06
8.06
8.35
8.36

CONVENSPREAD BETIONAL - TWEEN YIELDS
ON CONV. &
MORTFHA MORTGAGES
3
GAGES
6.00
.47
5.55
.15
6.30
.23
5.80
.25
6.70
.30
6.65
.
.11
-.12
6.40
7.30
.02
6.75
-.27
7.40
7.55
7.60
7.65
7.75
7.75
8.00
8.10

-.10
——

-.39
-.40
-.31
-.31
-.35
-.26

1

NEW
Aaa COR:
BORATE
BONDS
4
4.94
3.65
5.25
4.41
5.82
6,51
5.18
6.79
6.15
6.79
6.92
6.91
7.37
7.17
7.22
7.58
7.63

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
.73

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
2
Based on FHA-field-office opinions about average bid prices in the private
secondary market, for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. 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.
3
Based on FHA-field-office opinion on typical interest rates (rounded) on conv e n t i o n a l 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 line indicates this change in the series.
4
See note for Table 1.




MORTGAGE AND BOND YIELDS

Monthly

1

9

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES
Z V X /

4

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

1962




1964

1966

Basis points

1968

1970

TABLE 17: Conventional Mortgage Terms 1
NEW HOMES

DATE'

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

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

EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE ' LOAN
(PER
RATE
TIVE
RITY RATIO
AMI.
CENT) RATE (YEARS) (PER
(PER
($000)I
CENT)
CENT)
2
3
• f

1968

• June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-

6.88,
7.04
7.10
7.10
7.09
7.07
7,-09

.

'

0.95
0.85
0.87
0.87
0.88
0.84
0.89

7.03
7.17
1.2k7.24
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
,6
22,
22.
.1
22.
,7
22. 5
24. 7

6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.86
7.12
0.83
7.23
0.85 * 7.26
0.82
7.25
0.84
7.22
0.82
7.21
0.85
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

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
73.3
73.8
72.6
73.2
73.0

24. 1
23.5
. 24.0
24. 8
25. 0
25. 0

7.18
7.28
7.35
7.46
7.54
7.63

0.86
0.86
0.84
6.85
0.83
0.85

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

1969
J*n.
7, 16
Feb.
7.26
Mar.
7.32
Apr.
7-47
May
7.50
June £/ 7.61

1

7.32
7.42
7.49
7.60
7.68
7.78

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
h o m e - b u i l d e r s a n d 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 addied 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.




1

;

33

CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

73
CXMTMC

1H3




IMS

1*7

IMS
• CHMMCMKMU

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