Full text of H.16 Capital Market Developments : August 20, 1973
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•c CAPITAL MARKET DEVELOPMENTS August 20, 1973 Prepared by the C A P I T A L MARKETS SECTION in c o n j u n c t i o n with t h e MORTGAGE. A G R I C U L T U R A L , and CONSUMER F I N A N C E SECTION DIVISION O F RESEARCH AND STATISTICS J / [ BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTEM JVasfeington, D C . 20551 INDEX D E V E L O P M E N T S IN T H E C O R P O R A T E AND M U N I C I P A L BOND M A R K E T S C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME S T O C K MARKET MORTGAGE M A R K E T SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOTXVAILABLE — — D A T A DO NOT EXIST Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET YIELDS WEEK ENDING NEW ISSUE 1 1973 - VOLUME RECENTLY OFFERED A a a UTILITY A a a UTILITY 2 3 GROSS PER CENT S O L D BY END OF WEEK OFFERINGS ($ MILLIONS) NEW ISSUES IN S Y N D I C A T E ($ MILLIONS) - - 7 . 8 0 0 13 7 . 9 2 7 . 8 5 317 20 7 . 9 2 7 . 9 4 54 81 10 27 8 . 0 3 8 . 1 2 219 96 10 8 . 2 8 343 100 0 8 . 3 0 150 100 0 90 100 0 J u l y 6 Aug. 3 8 . 3 1 10 17 8 . 5 2 8 . 3 0 p 8 . 1 6 p " 0 0 76 77 ' MUNICIPAL BOND MARKET YIELDS WEEK ENDING 1973 - J u l y Aug. MOODY'S NEW ISSUE VOLUME BOND BUYER 20-60ND INDEX GROSS OFFERINGS 3 PER CENT S O L D BY END ($ MILLIONS) OF WEEK NEW ISSUES IN S Y N D I C A T E ($ MILLIONS) 6 5 . 1 0 5.34 194 71 133 13 5 . 2 5 5 . 4 0 503 74 129 20 5 . 2 0 5 . 3 7 436 76 144 27 5 . 3 0 5 . 4 8 626 85 148 3 5 . 4 0 5 . 5 9 86 5 . 4 0 5 . 2 0 5 . 5 8 181 256 89 10 94 53 215 85 17 5.47 59 NOTES: 1 Federal Reserve series of implied yield o n n e w l y issued, Aaa-rated utility b o n d w i t h 5-year call p r o t e c t i o n . 2 Federal Reserve series of implied f r e e - m a r k e t yield o n competitively bid Aaa-rated utility b o n d w i t h 5-year call p r o t e c t i o n , released f r o m price restrictions s o m e t i m e during t h e last f o u r w e e k s . 3 E s t i m a t e d b y F . R . o n t h e basis of available d a t a . 4 C o r p o r a t e M a r k e t : S a l o m o n B r o t h e r s Bond Market Roundup; Municipal M a r k e t : Weekly Bond Buyer. necessary t o m a k e coverage of this series c o n s i s t e n t w i t h t h e gross o f f e r i n g s series. Data are a d j u s t e d b y Federal Reserve w h e n 4 4 Table 2 HIGH GRADE BOND YIELDS NEW I S S U E A a a UTILITY DATE 1 2 RECENTLY OFFERED A a a UTILITY MOODY'S SEASONED CORPORATE Aaa 3 U . S . G O V T . 2 0 YEAR C O N S T A N T MATURITY 4 5 B O N D BUYER 2 0 - B 0 N D INDEX 1971 - High Low 8.26 (7/30) 7.02 ( 2 / 5 ) 8.23 (1/1) 7.17 (12/31) 7.71 (8/12) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 1972 - High Low 7.60 (4/21) 6.99 (11/24) 7.46 (5/12) 7.17 (1/7) 7.36 (4/28) 7.05 (12/8) ' 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.96 (10/21) 1973 - High Low 8.52 (8/10) 7.29 (1/21) 8.30 (8/17) 7.28 (1/5) 7.71 (8/17) 7.11 (1/5) 7.79 (8/17) 6.42 (1/5) 5.59 (8/3) 5.03 (1/12) 6 13 20 27 7.92 7.92 8.03 7.80 7.85 7.94 8.12 7.41 7.44 7.45 7.48 7.16 7.20 7.25 7.39 5.34 5.40 5.37 5.48 3 10 17 8.31 ' 8.52 8.30 p 8.28 8.30 r 8.16 p 7.53 7.61 7.71 p 7.71 7.79 7.71 p 5.59 5.58 5.47 July Aug. NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 5 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four t o p groups as classified by Moody's Investors Service. Weekly Bond Buyer data. z H.FB Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS OF DOLLARS GROSS PROCEEDS PERIOD 1 CORPORATE 1973 1 1972 1971 2 STATE AND LOCAL 1973 1 1972 1 1971 January February March 2,327 1,962 3,933 3,205 3,369 3,229 3,115 3,000 6,075 1,975 1,499 2,446 1,776 2,005 2,239 2,732 1,851 2,258 April May June 2,484 2,468 3,275 3,598 4,341 4,042 3,300 4,375 1,817 1,921 2,072 1,989 2,017 2,270 1,891 2,167 2,013 July August September 3,582 2,893 2,720 4,147 2,532 3,768 1,805 1,966 1,726 1,989 1,903 2,098 October November December 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2,264 2,068 9,803 11,214 9,195 10,564 12,190 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 18,902 24,962 Q1 02 03 Q4 1st Half 3 Qtrs. Year 8,222 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 5,920 5,810 NEW CORPORATE SECURITY I S S U E S BY TYPE OF ISSUE AND ISSUER IN MILLIONS O F DOLLARS G R O S S P R O C E E D S BY TYPE O F I S S U E R G R O S S P R O C E E D S BY TYPE O F I S S U E PERIOD BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK MEMO I S S U E S INCLUDED FOREIGN [CONVERTIBLE MANUFACTURING COMMUNICATIONS PUBLIC UTILITY 1,369 856 1,079 4,240 4,030 5,151 1,215 3,683 740 227 1,658 581 761 767 1,219 738 1,538 ] 78 391 800 1,297 1,708 1,235 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 28 124 - 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 1,050 1,004 1,817 14 27 64 81 28 3 176 213 509 900 596 931 33 174 1,008 1,218 980 1,485 758 808 63 44 25 78 282 381 519 765 258 367 1,426 955 11,214 9,195 10,564 4 , 634 4 , 192 4 , 158 2 , 781 1, 867 3 147 3,798 3,136 3,258 245 57 245 449 836 428 2,109 1,629 1,398 1973 - I 8,222 2 945 1 405 3,971 105 112 898 2 , 4 2 7 ,• 1972 - Mar. 3,229 1, ,677 577 976 3 233 604 Apr. May June 3,275 3,598 4,341- 1= ,622 1;,6^6 1.,336 789 744 1 ,218 864 1,148 1,786 15 100 130 92 226 131 July Aug. Sept. 3,582 2,893 2,720 1 ,807 1 ,523 863 657 421 789 1,118 948 1,070 3 17 37 Oct. Nov. Dec. 3,791 3,377 3,396 1 ,773 1 ,361 1 ,024 564 982 1 ,601 1,454 1,034 770 1973 - J a n . Feb. Mar. 2,327 1,962 3,933 989 641 1 ,315 287 316 802 Apr. May 2,484 2,468 938 1 ,049 788 611 1972 - II III IV , 1 OTHER ISSUERS 3,495 2,680 2,934 1 NOTES: Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. 1 Source- Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon available information. " H.16 T a b l e 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 August 1 t h r u August 10. 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD 8-5/8 8-7/8 8.50 8.50 8.80 8.50 Aa A Aa 8.46 8.68 Aa A MOODY'S RATING CORPORATE Consumers Pwr. Alabama Pwr. Gulf S t a t e s U t i l i t i e s Smith I n t e r n a t ' l S t . John Del-Ray Mining New England Power Mich.-Wise. P i p e l i n e Co. Guardian Mtge. I n v e s t o r s l 1 s t mtg Bonds 1 s t mtg Com s t k Com s t k ( r t s ) 1 s t Mtge 1 s t Mtge Bene.Int. 75.0 100.0 50.0 28.9 15. 5 40.0 50.0 19.8 2003 2003 2003 __ *— 2003 1993 — 8-5/8 8-5/8 — — NOTES: • Rights offering. 1 FRASER Includes corporate and other security offerings of $15 million and over. Digitized for H.16 T a b l e SB C o n t i n u e d LARGE LONG-TERM PUBLIC SECURITY I S S U E S FOR NEW CAPITAL OTHER THAN U.S. TREASURY August 1 t h r u August 17. 1973 ISSUER STATE AND LOCAL TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING i F l o r i d a , S t a t e of \ S t . of New Hampshire I n d u s . Dev. Auth. Illinois Alaska Long Beach C i v i c C t r . Auth, Cal. 1 D.C. Redev. Land Agency G.O. P o l l cont r e v G.O. G.O. G.O. G.O. 50.0 10.0 100.0 31.0 36.0 13.1 1974-1992 1998 1974-1998 1977-1998/ 1977-2006 1974-2004 5.38 7.50 5.27 5.80 5.93 — 5.30-5.75 7.50 5.00-5.80 5.26-6.00 5.20-6.05 5.00-5.40 Aa —— Aaa Baa1 Aa Aaa J Table 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of August 17, 1973 ISSUER New York T e l . F l a . Pwr. & L t . F l a . Pwr. & L t . P u b l i c S e r v i c e of Colo. Wisconsin Pub. Svc. Miss. Pwr. & L t . GTE of Pa. New J e r s e y B e l l Utah Pwr. & L t . Utah Power & L i g h t Delmarva Pwr. & L t . Cleveland E l e c t . I l i u m . Ohio Edison P a c i f i c Lighting Service TYPE Bds. Com. S t k . 1 s t Mtge. Pref. Stk. Debs. Bds. 1 s t Mtge. Debs. Com. S t k . Com. S t k . Pref. Stk. P r e f . Stk. Bds. Deb. 1 AMOUNT (IN MILLIONS OF DOLLARS) 300.0 69.8 50.0 30.0 25.0 20.0 25.0 150.0 30.0 28.6 15,0 25.0 75.0 30.0 APPROXIMATE DATE OF OFFERING ' Aug. 21 Aug. 23 Aug. 23 Sept. 5 Sept. 5 Sept. 5 Sept. 5 S e p t . 11 S e p t . 11 S e p t . 11 S e p t . 12 S e p t . 12 S e p t . 17 S e p t . 19 NOTES: • Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.16 Table 6B Continued FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of August 17, 1973 TYPE ISSUER 1 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL Metro S e a t t l e , Wash. *Boston *Charlotte,N.C. Metro Denver Swge. D i s t . l , Col. Gains v i l l e , F l a . ' New Bedford,Mass. Houston,Tex. New J e r s e y St. Petersburg,Fla. P e n n , S t a t e of M a r y l a n d , S t a t e of ^Milwaukee Area Voc. Tech. & Adult Ed. D i s t . Oregon, S t a t e of Nassau Co., N.Y. Chicago Los Angeles DWAP Oakland U.S.D. Cal. *New York C i t y -Sacramento, C a l i f . Muni. U t i l . D i s t 16 21 21 21 21 21 22 28 28 28 29 G.O. G.O. G.O. Rev. Rev. G.O. Rev. G.O. G.O. G.O. G.O. 14 .9 27,.0 21,.5 20,.0 11..0 10..4 35..0 75.,0 20..0 125. 0 54. 3 Aug. Aug. Aug. Aug. Aug. Aug Aug. Aug. Aug. Aug Aug. Prom. Note G.O. G.O. Rev. Rev. G.O. G.O. Rev. 22. 0 75. 0 48. 5 47. 0 15. 0 10. 8 385. 0 50. 0 Aug. 30 Sept. 5 Sept. 9 Sept. 10 Sept. 12 Oct. 15 Oct. 16 Nov. 14 Table 7 STOCK PRICES AND VOLUME NYSEJNDEX 57.76(4/18) 48.73(1/4) 1971 - High Low 1972 - High Low 1973 - High Low July Aug. 1 STOCK P R I C E S DAI 6 13 20 3 1DJ INDUSTRIALS | 950.82(4/28) 797.97(11/23) AMEX 4 | NASDAQ 2 TRADING VOLUME | NYSE 2 6 . 6 8 ( 4 / 2 8 ) 112.66(12/31) . 2 2 . 1 ( 2 / 1 2 ) 11.0(9/17) 22.72(1/4) 100.52(2/26) AMEX 6.7(2/5) 2.7(8/13) | NASDAQ 8.9(12/30) 5.1(11/26) 65.14(12/11) 1036.27(12/11) 56.23(1/3) 889.30(1/3) 28.53(4/14) 133.28(4/21) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 53.36(7/6) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.39(7/5) 20.4(1/12) 10.2(7/6) 4.8(1/12) 1.7(7/6) 10.4(1/12) 3.8(7/6) 10.2 14.6 16.7 17.1 1.7 2.4 2.9 3.1 4.0 5.5 5.9 6.2 12.0 12.8 12.0 2.1 2.0 1.7 4.9 4.9 4.4 1051.70(1/11) 869.13(6/25) 27, 53.36 55.12 57.09 58.36 870.11 885.99 910.90 936.71 22.24 22.64 23.18 23.54 99.48 103.03 107.67 109.36 3 10 17 56.79 55.84 54.58 908.87 892.38 871.84 23.35 23.17 22.97 106.82 105.32 ; NOTES: 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: From January 3, 1969 July 7, 1969 January 2, 1970 3 4 12/81/66 - 60 Average dollar value of shares listed. Through July 3,1969 December 31,1969 May 1,1970 Hours/Pay 4 4% 6 . Days/Week 5 5 5 Hours/Week 20 22% 25 \ \ H.16 Table 8 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD BROKERS ON1 MARGIN STOCK BROKERS ON % CONVERTIBLE BONDS 3 BANKS UNREGULATED 4 NONMARGIN STOCK CREDIT AT B A N K S OTHER SECURITY CREDIT AT BANKS 5 OUTSTANDING 1972- June July Aug. Sept. Oct. Nov. Dec. 1973- J a n . Feb. Mar. Apr. May June 7,510 7,660 7,780 7,800 7,800 7,890 7,900 244 248 246 248 250 249 254 955 979 1,032 1,008 943 902 865 7,700. 7,500 7,200 •7,040 6,540 6,180 249 248 244 232 224 225 90 10 3 4 -2 2 2 -1 5 -200 -200 -300 -160 -500 -360 -5 -1 -4 -12 -8 -9 1,644 1,772 1,800 1,871 1,875 1,871 1,896 1,274 1,285 1,298 1,255 1,351 1,296 1,528 865 867 879 872 866 n . af 1,940 1,954 1,917 1,969 2,010 n.a. 1,484 1,508 1,566 1,482 1,502 39 24 53 -24 -65 -41 -37 503 128 28 71 4 -4 25 -22 11 13 - 43 96 45 132 44 14 -37 52 41 -44 24 58 32 20 • CHANGE IN OUTSTANDING 1972 - June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. _Mar. Apr. May June 310 150 120 20 —— ' 2 12 -7 -6 * ° 8 NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. H.16 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS NET FLOW 1 ANNUAL 3 GROWTH RATE TOTAL S A V I N G S & LOAN A S S O C I A T I O N S MUTUAL S A V I N G S B A N K S REGULAR D E P O S I T S NET NEW MONEY 2 S H A R E CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY 2 DEPOSITS ANNUAL 3 GROWTH RATE NET FLOW NET NEW MONEY 2 NOT SEASONALLY A D J U S T E D 1970 1971 1972 4,517 9,621 9,788 6.8 13.5 12.0 936 5,678 5,397 10,965 28,230 32,902 1972 - Apr. May. June 464 669 1,136 —— —— 280 533 868 1,744 2,209 3,738 -88 366 n.a. 831 1,880 3,282 1973 - Apr. , May June £./ 96 525 875 — - — — 8.1 19.3 19.5 __ — *" -- 1 - — — 5,285 20,653 23,884 15,482 37,851 42,690 7.7 17,5 17.0 6,221 26,331 29,281 1,668 2,107 1,626 2,208 2,878 4,874 - — 1,948 2,640 2,494 724 1,763 900 927 2,383 4,157 - — 4,834 2,299 2,980 1,646 2,379 3,142 19.4 9.1 11.7 6.4 9.2 12.1 - — 636 2,107 n.a. -- SEASONALLY ADJUSTED 1973 - J a n . feb. Mar. Apr. May June JD/ 808 465 579 387 450 742 10.6 6.1 7.5 5.0 5;8 9.5 —— —— - - - - 4,026 1,834 2,401 1,259 1,929 2,400 23.3 10.4 13.5 7.0 10.7 13.2 —— —— —— - — * — -- NOTES: 1 Fogular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 fV.?w deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Anniuil growth rate for monthly data is the annualized monthly percentage increase in deposits. , Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.16 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, S E A S O N A L L Y A D J U S T E D NET CHANGE OUTSTANDING COMMITMENTS PERIOD TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N Y. STATE) TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. STATE) ( B i l l i o n s of D o l l a r s , S e a s o n a l l y A d j u s t e d ) ;r / 1971 - Dec. 16.6 13.1 3.6 .09 -.06 .15 1972 - J a n . •Feb. March April May 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 14.1 15.0 15.4 15.7 16.2 16.3 16.5 ' 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 25.9 26.5 26.0 25.3 24.6 24.0 20.8 21.5 21.2 20.7 20.1 19.6 5.1 5.0 4.8 4,6 4.5 4.4 .98 .59 -.59 -.65 -.74 -.55 .81 .69 -.38 -.48 -.61 -.43 .17 -.10 -.21 -.17 -.13 -.12 / July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end-of period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 1 T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND LONG-TERM ISSUES . TOTAL FHLB -450 -651 -452 -337 -39 -87 -28 +200 -250 1971 - Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -439 -696 -388 -483 +604 +335 +453 +942 -96 +563 -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 — — +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 -403 -2 -1 -200 -1 -1 -1 +103 +337 -1 +131 +452 +582 +1,267 +1,769 +122 +312 +378 +1,303 +1,600 +251 -1 +1,195 +1,200 1973 - J a n . Feb. • Mar. Apr. May - - — — FHLMC — — . — — +300 —' — — —— +200 — — +500 — FNMA +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 — -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +602 +250 — -1 +814 - — — — +100 -150 -1 +400 — -25 +76 +116 +51 — +1 +400 FNMA SHORT-TERM DISCOUNT NOTES +6 +10 +379 +107 +9 +140 +204 -36 +169 - NOTES: Based on d a t a from t h e T r e a s u r y Survey of Ownership. « Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNMA TOTAL 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 5,404 2,462 9,940 15,999 2,682 1,845 3,938 5,377 9,561 10,172 24,160 31,982 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 1972 - J u l y Aug Sept Oct Nov Dec 4,872 5,931 5,286 4,779 5,114 5,943 4,717 5,563 4,918 4,684 4,984 5,811 1,500 1,600 1,400 1,400 1,500 1,000 438 553 502 472 517 598 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 1973 - J a n Feb Mar Apr May 3,760 3,454 4,913 4,364 5,339 n.a. 3,565 3,388 4,844 4,368 5,503 n.a. 900 900 1,200 1,200 1,600 1,700 458 331 568 506 562 n.a. 2,045 2,128 2,999 2,991 3,250 3,296 162 39 77 -329 142 514 195 66 69 - 4 -164 255 1972 - J u l y Aug Sept Oct Nov Dec 4,849 5,471 4,748 4,714 5,282 5,697 4,593 5,179 4,714 4,738 5,212 5,601 1,451 1,477 1,155 1,393 1,524 1,164 472 515 537 484 513 525 2,678 3,108 2,911 2,726 2,876 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 1973 - J a n Feb Mar Apr May 4,501 4,081 5,168 4,224 5,272 4,273 3,969 5,044 4,333 5,331 1,112 1,079 1,262 1,162 1,5331,589 475 388 601 554 562 2,467 2,430 3,067 2,906 3,100 2,794 219 72 114 -289 187 556 228 112 124 91 - 59 334 PERIOD COMMERCIAL s BANKS MSB's S & L's INSURANCE COMPANIES FNMA-GNMA Not S e a s o n a l l y A d j u s t e d 1969 1970 1971 1972 Seasonally Adiusted NOTES: 1 Monthiydata 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 89per cent of the net increase estimated for all holders in 1 9 7 2 . 2 _____FRASER Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Digitized for H.16 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES RESIDENTIAL MULTIFAMILY & COMMERCIAL FARM 6.4 6.0 6.5 7.4 9.59.2 10.1 11.3 2.3 2.2 1.8 1.9 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 9.4 11.6 15.0 16.2 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1.5 1.5 2.1 2.2 27.3 36.0 38.9 40.7 19.2 26.5 30.1 31.9 8.0 9.4 8.8 8.9 8.1 9.5 11.1 11.0 16.1 18.9 19.8 . 19.9 2.2 2.3 2.3 2.5 62.4 64.9 65.2 68.4 45.4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9.6 8.8 10.4 14.5 15.2 15.2 15.4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 77.0 71.8 57.9 53.0 46.9 42.8 11.0 10.2 16.1 16.2 27.1 26.4 3.0 2.6 TOTAL TOTAL 1- to 4FAMILY MULTIFAMILY 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 1969 - I II III IV 32.0 29.1 25.8 25.2 23.8 21.5 18.7 18.5 19.4 16.8 14.0 13.1 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 1971 - I II III IV 37.5 47.8 52.2 54.2 1972 - I II III IV 1973 - I II QUARTER COMMERCIAL NOTES: 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 Apiculture, 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. H.16 T a b l e 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S O F U N I T S , S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S PERMITS PERIOD TOTAL 1—FAMILY COMPLETIONS STARTS 2-OR MORE FAMILY TOTAL 1 —FAMILY 2 - O R MORE FAMILY TOTAL 1 —FAMILY • \2 - "on" M O R E FAMILY I MOBILE HOME SHIPMENTS 1972 - J a n u a r y February March April. May June July August September October November December 2, 2b4 2 056 2, 007 1, 991 1, 955 2, 121 2,108 2, 237 2,,265 2,,216 2,,139 • 2,,377 1 098 959 954 963 923 989 1,,013 1,,031 975 1:,086 961 947 1, 106 i 1, 097 1, 053 1 , 028 1, 032 1, 132 1,,095 1,,206 1,,290 1,,130 1,,178 1,,430 2,439 2,540 2,313 2,204 2,318 2,315 2,244 2,424 2,426 2,446 2,395 2,369 1 ,395 1,281 1,310. 1,215 1,308 1,283 1,319 1,373 1,382 1,315 1,324 1,207 1,044 1,260 1,003 989 . 1,011 1,032 925 1,051 1,045 1,131 1,071 1,162 1,968 2,088 j 1,983 1,954 1,891 1,904 1,891 1,973 1,972 1,945 1,980 2,147 1,154 1,141 1,137 1,154 1,121 1,125 1,095 1,210 1,118 1,156 1,153 1,168 814 947 846 799 770 779 799 763 853 789 828 980 554 552 595 634 572 583 556 534 494 548 666 606 1973 - J a n u a r y February March April Mayr/ Juner/ July 2,,218 2,, 1 9 1 2-, 0 7 1 . 1,,834 1 ,838 2 ,030 L ,816 1.,057 1 ,068 989 923 954 934 891 1,,161 1,,123 1,,082 911 884 1 , ,096 925 2,497 2,456 2,260 2,123 2,413 2,093 1,450 1,372 1,245 1,202 1,271 1,117 1,249 1,047 1,084 1,015 921 1,145 976 927 2,147 2,033 2,162r/ 2,067r/ 2,175 2,102 1,324 1,259 1,310r/ 1,168r/ 1,288 1,215 823 774 85 l r / 899r/ 887 886 648 642 737 680 662 616 ^,176 NOTES: Private building permits (for 13,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. Note: P e r m i t s i n l a t e r months r e f e r t o 1 4 , 0 0 0 p e r m i t - i s s u i n g a r e a s . T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL L O A N S PRIMARY MARKET NEW H O M E S HUD(FHA) INSURED L O A N S S E C O N D A R Y MARKET EXISTING H O M E S NEW HOMES 1 PERIOD RATE (IN PER CENT) 1 1 SPREAD (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) DISCOUNT (PERCENTAGE POINTS) 8.05 7.65 62 06 7.97 7.32 31 07 7.8 2. 7 7.75 7.60 66 20 7.57 7.45 48 05 7.54 7.55 7.56 7.57 7.57 7.56 7.55 7.56 7.63 7.73 7.79 7.89 8.19 1971 - High Low 7.95 7.55 52 01 1972 - High Low 7.70 7.55 61 15 1972 - J u l y Aug Sept Oct Nov Dec 7.65 7.65 7.70 7.70 7.70 7.70 27 28 30 32 61 55 7.70 7.70 7.75 7.75 7.75 7.75 32 33 35 37 66 60 1973 - J a n Feb Mar Apr May June July 7.70 7.75 7.80 7.90 7.95 8.05 8.40 32 35 31 44 44 41 39 7.75 7.80 7.85 7.90 8.00 8.10 8.40 37 40 36 44 49 46 39 1 , SPREAD BETWEEN R E T U R N S ON NEW A a a CONVENTIONAL UTILITY AND HUD(FHA) BOND NEW HOME YIELD MORTGAGES (IN PER CENT) (BASIS POINTS) 28 01 8.04 7.28 4.7 3.7 14 06 7.45 7.09 16 18 16 19 48 41 4.4 4.5 4.6 4.7 4.7 4.6 11 10 14 13 13 14 7.38 7.37 7.40 7.38 7.09 7.15 17 16 14 27 28 25 18 4.5 4.6 5.2 5.9 6.4 7.2 9.4 15 19 17 17 16 16 21 7.38 7.40 7.49 7.46 7.51 7.64 8.01 . NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. H.16 Table 16 FNR/IA AUCTION RESULTS HOME MORTGAGE COMMITMENTS RNMENT-UNDERWRITTEN DATE OF AUCTION AMOUNT (IN MILLIONS OF DOLLARS) OFFERED 1973 - Jan. __ 2 Mar. Apr. YIELD OFFERED __ 22 61.3 92.1 7.69 7.70 5 128.7 65.4 7.71 6 19 21 -- -- -- 110.3 71.6 7.73 5 6 19 21 CONVENTIONAL AMOUNT (IN MILLIONS OF D O L L A R S ) ACCEPTED 74.2 107.0 3 Feb. j 1 AVERAGE AVERAGE YIELD ACCEPTED 39.3 25.5 7.84 -- -- - - -- -- 100.9 62.9 7.89 66.0 49.6 7.92 7.95 -- - - -- -- 170.8 107.7 -- -- -- 60.3 44.3 297.3 168.7 7.81 -- - — -- -- 86.8 56.4 8.02 111.9 81.6 8.11 1 7. 75 7.86 •2 234.6 145.9 3 —— —— 16 17 30 216.6 190.7 7.89 -- -- 111.0 261.2 185.9 7.92 Hay 14 29 258.3 .212.4 187.7 140.0 7.96 8.00 June 11 25 184.5 199.3 142.2 118.7 July 9 23 539.0 351.4 6 458.5 Aug. | -- - - - - 128.9 88.4 88.2 8.17 8.23 117.6 113.3 84.4 74.0 8.31 8. 39 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 244.8 181.4 8.38 8.54 108.0 119.0 72.5 61.7 8.67 8.79 201. 9 8.71 154.3 77.4 8.98 . - — NOTES: T Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitment:. Mortgage amounts offered by bidders relate to total eligible bids received. » 4 ' ) H.161
@FedFRASER