Full text of H.16 Capital Market Developments : August 3, 1970
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v L \ 8 . Confidcntiol(F.R.) mjcontbolled after six months - - 'CAPITAL MARKET, ELOP,VENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. Aug. 3. 1970 ^ INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 Capital Market Yields 8-13 Cap,ital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not a v a i l a b l e TABLE 1: Yields, Volume and Reception WEEK ENDING: • 1970 - July 9.02 8.70 8.58 8.38 8.60 8.60 8.55 8.49 8.50 8.26 360 395 475 403 100 94 83 88 886 580 674 883 364 91 n.a. 7 n.a. n.a. 350e n.a. n.a. YIELDS BOND BUYER MOODY'S SEASONED SEASONED 20 Aaa BOND INDEX WEEK ENDING: Aug. CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OF WEEK OFFERINGS WITHIN 28 DAYS 3 10 17 24 31 Aug. 1970 - July YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa MUNICIPAL BOND MARKET VOLUME2 PER CENT SOLD BY END GROSS OF WEEK OFFERINGS BONDS SCHEDULED WITHIN 28 DAYS 3 10 17 24 31 6.65 6.50 6.50 6.15 6.79 6.59 6.60 6.28 119 177 282 351 54 67 62 72 634 845 781 808 6.20 6.40 396 62 676 7 n. a. n. a. 200e n.a. n.a. 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.) Millions of dollars unless otherwise indicated. I Note: See footnotes to Table 3 a TABLE 2: Details on Inventories CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION COUPON •ISSUER • AMOUNT (MIL, $) DATE OFFERED 7/30 7/30 7/29 7/29 7/28 7/22 7/14 50 40 17 25 18 15 25 Carolina Pwr. & Light Pennwalt Corp. Gen. Tel. Mich Quaker St. Oil Miss. Pwr. & Lt. Kansas Neb. Nat. Gas Pacific PSL 8 3/4 9 1/8 9 1/8 9.00 9.25 9 1/8 9 5/8 8.75 9.18 9.15 9.05 9.05 9.13 9.50 Aa A A A A A Baa 5 5 5 10 5 10 5 yrs. yrs. yrs. yrs. yrs. yrs. yrs. ESTIMATED PROPORTION SOLD 90% 75% 80% 98% 25% 65% 90% / OFFERED DATE | RELEXSED 7/21 7/30 CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD AMOUNT 100.0 INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE DATE 1970 - July Bell Tel. Penn. 3 10 17 24 31 370 335 376 392 452 129 73 128 119 215 8.63 8.50 +20 Aaa 5 yrs. 20% CORPORATES IN SYNDICATE 0 23 108 50 40 \ N.C. - No call protection. 1 for FRASER Al|i figures in millions of dollars. Digitized which is dni.lv average of three days Blue List is daily average for week ended Friday,except for latest week ended Wednesday. All other fie* •' r* 3 2 of Friday. f BONDS IN SYNDICATE Millions of dollars Friday figures C O R P O R A T E B O N D S IN S Y N D I C A T E 200 100 1 I !• I I I I I I M U N I C I P A L B O N D S IN S Y N D I C A T E 300 200 100 SEPT. DEC. '68 JUN. 1969 \ SEPT. DEC. MAR. JUN. 1970 SEPT. DEC. 0N - TABLE 3: High Grade Bond Yields DATE .. . NEW CORPORATE Aaa1 MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES3 / •j BOND BUYER'S SEASONED MUNICIPALS4 1968 - High Low 7.02 6.,13 (12/13) . (8/30) 6.55 5.95 (1/27) (9/13) 5.90 5.18 (1/20) (8/9) 4.85 4.07 (1/26) (8/8) 1969 - High Low 8..85 6.,90 (12/5) (2/21) 7.84 6.55 (12/26) (1/13) 6.97 5.96 (12/26) (1/24) 6.90 4.82 (12/18) (1/28) 1970 - High Low 9,.30 8.,20 (6/19) (2/27) 8.60 7.79 (7/3) (3/6) 7.55 6.60 (5/29) (3/6) 7.12 5.95 (5/29) (3/12) 1970 - July 3 10 17 24 31 1 9,.02 8,.70 8 .58 8 .38 8 .60 8.60 8.55 8.49 r/8.40 8.26 7.10 6.91 6.96 6.89 6.90 6.79 6.59 6.60 6.28 6.40 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Meekly 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--Righs and lows are for individual series and may be on different dates for different series. HIGH GRADE BOND YIELDS MOODY'S CORPORATE Aaa U S. GOVT 2 0 YR. CONSTANT MATURITIES BOND BUYER MUNICIPAL 1966 1967 1968 1969 1970 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1 STATE AND LOCAL ' 1969 1968 1970 1969 1968 3,539 2,075 2,045 2,098 1 ,771 1 ,608 1 ,799 1,340 1,214 1,551 1,262 987 538 1,178 1,158 1,404 April May June 3,142 3,600e 3,225e 2,748 2,076 2,530 1 ,428 1 ,866 2 ,411 1,646 995 1,070 1,801 1,110 737 1,318 1,143-j 1,395 July August September 2,900e 2,478 1,427 2,427 2 ,143 1 ,432 . • ,557 1. 1,100e 1,097 808 559 1,469 ; 1,699 s 1,444 I 1,933 2,375 2,532 2 :,129 1,,767 2,,054 1,280 886 816 2,2301 1,021 I 1,115 | 6,218 7,354 6,332 6,840 " 5,178 5,704 5,133 5,950 2,787 3,648 2,464 2,982 3,840 3,856 4,612 4,366 6,435 8,899 11,881 7,956 12,008 16,574 1970 January February March 2,636 1,802 October' November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three-quarters Year 7,977 9,967e 13,572 19,904 26,744 10,882 16,015 21,965 4,105 3,711 I Excluding finance companies' 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year •1 2 3 Note: 6,170 7,037 I I f 5,107 5,427 4,785 5,654 20,973 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. AT&T rights -offering included in May estimate. r I TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) •QUARTER OR MONTH PUBLICLY OFFERED GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED STOCK FOREIGN CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS ISSUERS 1 1969 - I I III IV 7,354 6,332 6,840 3,411 3,186 3,479 1,673 1,347 1,053 2,268 1,797 2,307 227 289 115 1,126 750 809 1,773 1,862 1,314 1,878 1,544 1,967 432 684 598 . 3,266 2,243 2,961 1970 - 7,977 9,967 4,577 6,926 1,235 1,333 2,147. 1,708 222 922 649 2,584 2,690 2,085 2,607 766 2,215 2,543 2,455 1969 - June July ... Aug. Sept. Oct. Nov. X Dec. 2,530 2,478 1.426 2.427 1,933 2,375 2,532 1,272 1,279 685 1,222 969 1,164 1,346 514 609 259 479 313 226 514^ - 744 589 482 726 651 984 672 137 132 122 35 59 8 48 233 214 167 369 105 303 401 691 875 362 625 260 453 601 702 493 507 544 745 622 600 191 286 126 272 120 201 277 946 826 433 984 808 1,099 1,054 1970 - Jan. Feb. Mar. Apr.S.' May e/ 2,636 1,802 3,, 539 3,142 3,600 3,225 1,595 1,068 1,914 2,001 516 266 471 433 400 500 525 468 1,154 708 61 33 128 88 387 249 286 374 200 75 811 357 1,416 690 900 1,100 639 540 906 1,107 450 1,050 1 I He 1:92% 800 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. • . 234 226 306 ' 65 8 S 5°0° 952 680 911 1,280 450 725 TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury)1 TYPE ' AMOUNT / (MILLIONS OF MATURITY DOLLARS) Corporates Union Tank Car Detroit Edison Detroit Edison First Penna. Mtge. Trust Lomas & Nettleton Mtge. Inc. Philadelphia Electric B-W Acceptance Corp. Pioneer Natural Gas Co. 1990 2000 1995-1978 1975 . 2000 1976 1995 1995 1995 1990 2000 1995 1990 2010 1990 9.88 9.90 9.15 9,38 & 8 8.75 8.88 8.25 9.13 9.00 8.88 11.00 9.50 8.75 11.50 8.75 6.75 A 9.15 OO a 00 Beneficial Corp Washington Gas Light Co. Gulf Power Co. Duquesne Light Co. Brooklyn Union Gas Co. Consolidated Natural Gas Co. J.C. Penney, Inc. Avco Delta Corp. Puget Sound Pwr. & Lt. Co. Inland Steel Co. Ryder System Inc. Diamond State Telephone Co. Bank America Realty Investor Bank America Realty Investor ^Detroit Edison Co. Pacific Power & Light Union Oil Co. of Cal. Florida Pwr. & Light Co. American Airlines Inc. Equip Trst. * Ctfs. 25.0 Com. Stk. 58.0 Gen. & Ref. Mtg. 75.0 Debs. 75.0 1st Mtg. 20.0 1st Mtg; 16.0 1st Mtg. 40.0 1st Mtg. 30.0 Debs. 40.0 S. F. Debs. 150.0 Conv. Debs. 50.0 1st Mtg. 30.0 1st Mtg. 100.0 debs. 35.0 debs. 15.0 Conv. Debs. 25*5 Benf. Int. 51.0 Com. Stk. 47.6 1st Mtg. 25.0 debs. 100.0 1st Mtg.° 60.0 Equip. Trst. Ctfs. 78.5 32.0 Benf. Int. Benf. Int. 19.8 Cum Pref. Stk .60.0 S.F. debs. 25.0 debs. 20.0 July 1, through July 31, 1970 i.OUPON HA I OR * OFFER- MOOI'Y' XL. I .TKKRAT IM, IN C, I S I' COST YIELD 8.63 8.70 8.25 8.90 8.90 8.72 11.00 9.55 8.80 11.50 8.70 6.75 .25 Aa — A Aa Aa A Aa A Baa A Baa Aaa N.R. 2000 1976 1975 4.63 8.25 8.13 9.50 8.25 7.94 Baa A Aa 1988 11.00 11.00 Baa 1975 1975 9.50 11.00 9.40 11.00 Baa / - TABLE 6: Larye Long term Public Security Issues for NejpCapital (continue d) (Oilier than U.S. Treasury)1 10a July 1, through July 31, 1970 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) COUPON ! RATE OR MATURITYj NET INTER| EST COST 1j I:.( MOODY'S RATING Corporates Travelers Corp. A. 0. Smith Corp. Bell Tel. of Penna. Continental Can Co., Inc. Kansas - Nebraska Natural Gas Co. Carolina Pwr. & Light Co. Northern Natural Gas Co. Pennwalt Corp. Youngstown Sheet & Tube Tenneco Inc. 100.0 35.0 100.0 60.0 1995 2006 2006 1990 8.70 10.25 8.63 8.50 8.70 10.31 8.50 8.55 Baa Aaa A 15.0 debs. 50.0 1st Mtg. 40.0 debs, w/w 40.0 S.F. debs. 1st Mtg. S.F. bonds . 50.0 debs. 75.0 1990 2000 1990 1995 9.13 8.75 9.75 9.13 9.13 8.75 9.75 9.18 A . Aa Baa A debs. S.F. debs debs. S.F. debs pfd. Stk, Duke Pwr. Company 1st Mtg. Mississippi Pwr. & Lt. Co. conv. debs, El Paso Natural Gas Co. Gen'l Telephone Co. of Mich, 1st. Mtg Quaker State Oil Refining Corp, S.F. debs. 60.0 17.5 50.0 17.0 25.0 2000 1978 2000 1995 2000 1995 - 10.50 10.25 & 9.00 10.50 10.25 & 9.00 Ba A 9.25 8.25 9.13 9.00 9.05 8.25 9.15 9.05 A B A A TABLE 6 : Large Long-term Public Security Issues for New Capital \ (Other than U.S. Treasury)1 10b 1970 TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATI- OR » NET INTEREST COST OFFERING YIELD MOODY'S RATINC State and Local Maryland, State of Nassau Co., N. Y. Coastal Indust. Wtr. Auth Tx. Omaha, Nebraska Dallas, Texas ISD ~ New Jersey, State of Hawaii, State of Birmingham-Jefferson Civic Authority, Alabama Ohio Public Facilities Comm. Ohio Public Facilities'Comm. Texas, State of New York, State North Miami, Fla.. Oklahoma City* Okla. Philadelphia, Pa. Philadelphia, Pa. Redondo, Beach Calif. Parking Authority Boston, Mass. Tuscon Sch. Dist., p i m a Co., Arizona New York City Penna, State of Port of Seattle, Wash. Long Beach, Calif. bds. G. 0. G* 0# ' G.O* |Rev. Kentucky, State of 1 G.O. G.O. G.O. S.F. Rev. G.O. G.O. G. 0. Rev. 46.8 43.6 16.0 10.2 15.0 75.0 25.0 1973-85 1971-99 1989 1980 1971-90 1973-85 1973-1995 7.08 5.95 6.02 5.86 7.3 5 5.00-6.25 4.75-6.50 7.08 4.60-6.50 4.65-6.50 4.90-6.05 5.70-7.40 G.O. Rev. Rev. G.O. G.O. G.O. G.O. G.O. U/T G.O. U/T 23.7 25.0 40.0 15.0 60.0 12.0 21.3 24.8 23.6 1971-2000 1971-95 1971-95 1979-95 1971-2000 1972-2000 1973-95 1972-01 1972-96 7.53 6.20 6.17 6.04 5.66 6.67 5.84 7.54 7.19 4.90-7.80 4.40-6.25 4.40-6.25 5.40-6.40 5.10-6.10 4.90-7.00 4.80-6.25 5.50-7.50 5.50-7.50 Rev. G.O. 11.9 20.0 1976-93 1971-90 7.35 6.48 6.25-7.50 4.90-6.80 10.0 170.2 75.0 28.0 30.0 1971-90 1972-2001 1973-2000 1973-2000 1972-1991 5.97 6.00 6.03 7.04 7.02 20.0 1971-1995 6.06 4.70-8.00 5.25-7.00 4.60-6.40 5.10-7.20 5.20-6.20 & 7.00 4.25-6.35 6.03 -- Aaa A A-l Aa Aaa NR A Aa Aa A A - • Baa Baa - 1 Aa A1 A Aa TABLE 6: Large Long term Public Security Issues for New Capital (continm-rl) (Other than U.S. Treasury)' TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY July ^ through July 31, 1970 COUPON RATE OR NET INTEREST COST | ; UITI:R: i;,C J VILLI) MOODY'S RATING Aa A OTHER Ontario (Province of) . Nova Scotia (Province of) Federal Home Loan Banks Federal Land Banks Pacific Far East Line, Inc. F.N.M.A. debs. debs. Consol. bds. bds. U.S. Govt. insurwed. bds. debs. 75.0 25.0 2000 1976 9.25 9.00 9.25 9.11 300.0 407.0 1975 1973 7.95 7.95 7.95 7.95 510.0 400.0 1996-1997 1974 8.75 7.90 8.75 7.90 - Aaa - * 1 2 3 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 obligation; 'tev.-Ut., revenue obligations secured only by income from public utilities; 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 and Development issues and non-quaranteed issues by Federal Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Corporates 20.0 debs. 25.0 debs. equip trt. ctfs. 50.0 debs. 75.0 1st. & Refunding 100.0 Mtg. 1st. Mtg. 90.0 Gen 1 1 Tel. & Elec. Corp. debs. 50.0 United Gas Pipeline Co. debs. 25.0 Acme Markets Inc. notes Philips Industries Inc. 15.0 21.0 debs. National Fuel Gas Co. 35.0 Northern Illinois Gas Co. 1st. Mtg. debs. 30.0 Rex Chainbelt Inc. 75.0 Burlington Industires Inc. debs. 150.0 Southwestern Bell Tel. Co. debs. debs. 75.0 Bristol-Myers Co. 15.0 American Finance System,Inc ?debs. 150.0 debs. Shell Oil Co. 45.0 Wisconsin Pub. Service Corp , bonds 25.0 Central Illinois Light Co. bonds Gen'1 Tel. & Electronics debs. 40.0 Corp. 70.0 bonds Potomac Electric Pwr. Co. . 25.0 bonds Arkansas Pwr. & Lt. Co. 35.0 North Indiana Pub. Ser«,Co. bonds bonds Public Ser. Co. of Col. 35.0 ' bonds Hawaiian Tel. Co. 24.0 debs. Amerace Esna Corp. notes 25.0 Monogram Industries New England Tel. & Teledebs. 175.0 graph Co. bonds 27.0 Atlantic City Elec. Co.. bonds 40-50.0 Long Island Ligthing Co. 4 bonds 85.0 Virginia Elec. & Pwr. Co. 30.0 bonds Texas Pwr. & Lt. Co. debs. 150.0 We'stern Electric Co. Hotel Investors Ramada Inn Union Pacific R.R. Co. Household Finance Corp. Duke Pwr, Co. August August August August 3 4 4 4 August August August August August August August August August August August August August August August 5 5 5 6 6 10 11 11 12 12 13 17" 18 18 19 August August August August August August August August 19 19 20 26 26 27 September September September September September September 1 2 9 10 14 29 / 22sl TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State and Local Virginia Pub. Sch. Auth. Taylor, Mich. S/D Washington Sub. Sanit. Dist., Maryland Atlanta, Ga. San Francisco BARTS Puerto Rico Aqueduct & Sewer Authority Florida State Bd. of Ed. Alabama Highway Authority California Harford Co., Md Oregon, State of Penna. St. Pub. Sch. Bldg.Auth King Co. Wash. San Francisco Airport Imp. Corporation California Dade Co. Port Auth., Fla. St. Paul, Minn. New Hampshire Oakland Co., Mich. Madison, Wis., Los Angeles DWAPS Ohio, State of Detroit, Mich. Miami, Fla. Roanoke, Va. Kentucky Turnpike Rev. G.O. 25.0 12.2 August 4 August 4 Bds. G.O. Rev. 17.0 15.0 50.0 August 5 August 5 August 5 G. 0. Rev. G.O. G.O. G.O. G.O. G.O. G. 0. 20.0 20.0 35.0 100.0 11.5 55.0 21.4 11.0 August August August August August August August August G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. Rev. G.O. G.O. Rev. 30.0 63.5 20.5 24.5 15.6 12.9 39.0 100.0 46.0 12.5 10.5 60.0 August 18 August 19 August 19 August 20 August 25 September 1 September 2 September 3 August October 8 August 19 - 6 10 11 11 12 18 18 18 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 ' (continued) ' ISSUER AMOUNT (MILLIONS OF ; DOLLARS) TYPE APPROXIMATE DATE OF OFFERING • Other Quebec Hydro-Elec. Comm. Farmers Home Adni. ' /- k debs. notes August 12 August 17 75.0 300.0 ' • * V - * 1 2 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 ;noa-guaranteed issues of Federal Agencies. TRADING STOCK PRICES1 DATE S&P 3 5003 1 1 AMEX D.J. - IND. 4 i T A B L E 8: Stock Prices and Volume I AMEX NYSE 45.4(6/7) 14.1(2/23) 82.61(6/7) 34.0(2/23) 1968 - High Low 108.37(11/29) 985.21(12/13). 33.24(12/20) 21.97(3/25) 87.72(3/5) 825.13 (3/21) 1969 - High Low 106.16(5/14) 968.85 ( 5/14) 89.20(7/17) 769.93(12/17) 32.91(1/3) 25.02(7/29) 82.6(10/17) 38.4(5/9) . 12.9(4/4) 32.8(4/4) 1970 - High Low 93.46(1/5) 811.31(1/5) 69.29(5/26) 631.16(5/26) 27.02(1/8) 19.36(5/27) 28.4(1/2) 80.7(5/26) 35.1(7/3) . 8.3(7/3) 1970 - July 3 10 17 24 31P 72.92 74.57 77.69 77.82 78.05 19.95 19.93T 20.19 20.32 20.50 35.1 53.8 49.7 56.1 51.2 1. 689.14 700.10 735.08 730.22 734.12 Figures other than highs and lows are Fridays only. for the year and are not necessarily for Fridays. 8.3 12.1 10.6 10.6 11.3 Highs and lows are 2. 1941-43 • 3. Average dollar value of shares listed. 10. 4. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Total number of shares traded per week (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2 hours per week. In recent years, however, abbreviated trading to the extent, and over the time periods, shown below From: Through: Hours/ Day August 8, 1967 January 22, 1968 June 30, 1968 January 3, 1969 July 7, 1969 January 2, 1970 August 20, 1967 March 1, 1968 December 31, 1968 July 3, 1969 . December 31, 1969 May 1,1970 4 4 5-1/2 4 4-1/2 5 Days/ Week , Hours/ Week 20 20 22 20 22-1/2 25 5 5 4 5 5 5 I 15 STOCK PRICES AND TRADING VOLUME AM EX (Ind.) Weekly (500) 1280 128 STOCK PRICES A M E X PRICE LEVEL INDEX 1200 120 1120 112 S&P's 5 0 0 1040 104 960 D J . IND 96 880 88 800 80 Millions of shares A M E X T R A D I N G V O L U M E (TOTAL FOR WEEK) N Y S E T R A D I N G V O L U M E (TOTAL FOR WEEK) TABLE 9: Security Credit END OF PERIOD Outstanding; ' - May June July Aug. Sept. Oct. Nov. Dec. CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 I BANKS2 I TOTAL CUSTOMERS1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES 5,670 5,340 5,170 5,000 4,940 5,040 5,070 4,970 2,770 2,740 2,700 2,670 2,620 2,570 2,520 2,580 8,440 8,080 7,870 7,670 7,560 7,610 7,590 7,550 8,474 8,214 7,515 7,019 7,039 7,243 7,111 7,445 3,084 3,085 2,783 2,577 2,579 2,753 2,613 2,803 5,390 5,129 4,732 4,442 4,460 4,490 4,498 4,642 - Jan. Feb. , Mar. Apr. r MayP Change Outstanding: 4,680 4,570 4,520 4,360 4,150 2,430 2,370 2,370 2,330 2,290 7,110 6,940 6,890 6,690 6,440 6,683 6,562 6,353 5,985 5,433 2,626 2,563 2,441 2,248 2,222 4,057 4,099 3,912 3,724 3,211 1969 - May June July Aug. Sept. Oct. Nov. Dec. 100 -330 -170 -170 100 30 -100 10 -30 -40 -30 -50 -50 -50 60 110 -360 -210 -200 -110 50 - 20 - 40 430 -260 -699 -496 20 204 -132 334 7 1 -302 -206 2 174 -140 190 423 • -261 -397 -290 18 30 8 144 1970 - Jan. Feb. Mar. Apr. MayP -290 -110 - 50 -160 -210 -150 -40 -440 -170 - 50 -200 -250 -762 -121 -209 - 69 -521 -177 -163 - 22 -193 - 26 -585 42 -187 -188 -513 - 60 -40 -40 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- Lroo credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly rcportinv 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 at Nonbank Depositary Intermediaries ($ millions), • ' 7 DATE /V 1967 1968 1969 1969 - Apr. May June 1970 Apr. May 2./ June 2J 1969 - Dec. 1970 - Jan. Feb. Mar. Apr. May P / June P/ 1 2 3 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 NET GROWTH 1 FLOW RATE 5,082 4,208 2,551 Not Seasonally Adiusted 10,649 9.4 6,129 7 ,399 6.0 2,738 4,020 3.1 -1,003 -197 307 324 + 6 326 450 9.3 7.1 4.0 2,376 1,143 - 7 47 -- - 325 227 - 266 - 516 642 1,359 - 543 601 - 116 - 713 949 1,683 - 136 224 - 125 207 188 1 —— 763 707 267 1,812 Seasonally Adlusted 213 1,079 2,262 — —— -- 229 -117 298 244 371 360 319 TOTAL DEPOSITS ANNUAL NET GROWTH FLOW ' RATE 1 — -— —— — — -- -2.1 5.4 4.4 , 6.6 6.4 5-7 — ' • 47 0.4 - 754 247 1,021 973 637 902 -6.7 2.2 9.1 8.6 5.6 7.9 —— —— —— 15,371 11,607 6,371 x 9,4 6.3 3.4 -— __ — 276 1.6 - 871 545 1,265 1,344 997 1,221 -5.2 3.3 7.5 8.0 5.9 7.2 NET NEW MONEY 2 8,505 3,881 -1,750 868 828 - 382 52 931 142 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 association^ ,only, which represent 96% of industry total resources. Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. -- __ . . - 19 SAVINGS FLOWS (seasonally adjusted) Minions or aoiiars mommy ~ ~ 2000 1600 1200 TOTAL 800 400 SAVINGS & LOANS MUTUAL SAVINGS BANKS 1966 1967 1968 1969 1970 TABLE 11: Mortgage Commitments at Selected Thrift* Institutions ^OUTSTANDING COMMITMENTS........ ,1 ALL MUTUAL SAVINGS TOTAL SAVINGS & TOTAL BANKS LOAN (N.Y. STATE) ASSOCIATIONS DATE NET CHANGE ALL " — SAVINGS & LOAN X ASSOCIATIONS (Billions of Dollars, S< asonally Adjusted) 969 - May Junfe July Aug. Sept. Oct. Nov. Dec. .970 - Jan. Feb. Mar. Apr. May l / 10.4 10.2 9.9 9.5 9.2 8.9 8.6 8.4 8.2 7.9 7.6 7.8 8.0 ' 1 MUTUAL SAVINGS BANKS (N.Y. STATE) 1J\ 7.1 7.0 6.8 6.5 6.4 6.1 5.9 5.8 3.2 3.2 3.1 3.0 2.8 2.7 2.7 2.6 -.11 -.18 -.32 -.36 -,31 -.33 -.24 -.25 -.06 -.11 -.22 -.24 -.18 -.23 -.18 -.12 -.05 -.06 -.10 -.12 -.13 -.09 -.06 -.13 5.6 5.4 5.2 5.4 5.8 2.6 2.5 2.5 2.4 2.2 -.17 -.30 -.26 .13r .24 -.22 -.23 -.21 .26? ' .38 .04 -.07 -.05 -.13 -.14 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) Monthly Billions of dollars TOTAL N.Y.-MSB'S Includes building loans beginning August 1967 1960 1962 1964 1966 1968 1970 TABLE 12: Net Change in Mortgage Holdings 1 II DATE 1966 1967 1968 1969 Apr. May June Apr. May June FINANCIAL INSTITUTIONS MUTUAL SAVINGS COMMERCIAL SAVINGS LOAN BANKS BANKS ASSOC. I Not Seasonally Adjusted , LIFE INSURANCE COMPANIES TOTAL INCLUDING FNMA-GNMA TOTAL 18,105 20,016 23,781 24,051 15 ,782 18 ,219 21 ,273 19 ,676 4,705 4,639 6,677 5,535 2,720 3,153 2,787 2,682 3,761 7,520 9,350 9,407 4,596 2,907 2,459 2,052 2,323 1,797 2,508 4,375 2,227 2, U61 2,387 2 ,036 1 ,976 2 ,165 627 600 575 204 233 230 1,026 988 1,216 179 155 144 191 185 222 1,500 1,634 n.a. 1:,0?3 1 ,256 ti.a. 200 200 400 ,160 144 n.a. 486 723 1,128 177 189 n.a. 477 378 397 183 173 193 191 171 139 134 278 334 530 511 568 583 614 225 241 125 189 196 n.a. 556 499 516 494 418 454 FNMA-GNMA Seasonally Adlusted June July Aug. "Sept Oct. Nov. Dec. 1970 - Jan. Feb. Mar. Apr. May 1 2,153 1,698 1,910 1,876 1,734 1,652 1,906 1,365 1, 166 1,069 1,292 1,493 1,604 1,228 1,386 1,484 n.a. 937 1, 105 712 892 1,066 n.a. 1,,875 1,,364 1, 380 ' 440 151 310 383 244 237 347 288 285 144 141 133 269 230 181 157 137 124 146 235 . 24 143 197 205 160 n.a. 1,022 859 720 654 627 547 576 * 400 436 276 357 588 935 Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assp. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for.mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 87 per cent of the net increase estimated for all holders in 1967. 23 NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted) Monthly „ ' ^ Billions of dollars 2.5 TOTAL, INCL. FNMA • GNMA 2.0 FINANCIAL INSTITUTIONS 1.0 1967 1968 1969 1970 24 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR QUARTER TOTAL 1 RESIDENTIAL3 1 - to 4 FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1966 - IIIp IVp 18.7 15.2 11.0 9.2 8.4 7.0 2.6 2.1 5.5 4.2 8.2 6.2 2.2 1.8 1967 - Ip Hp IIIp IVp 15.6 20.5 27.0 27.5 10.0 13.8 19.6 19.9 6.8 10.5 15.7 16.0 3.2 3.4 3.9 3.9 3.8 4.9 4.9 4.9 7.2 8.2 8.7 8.8 1.8 1.8 j . 2.5 ! 2 7 1968 - I p up IIIp IVp 27.1 25.9 26.5 30.1 18.4 18.0 ^ 18.2 20.5 15.4 14.8 14.6 16.5 3.0 3.2 3.5 4.0 6.3 5.7 6.5 7.8 9.4 8.9 10.1 11.7 2.3 ; 1969 - I p IIP IIIp IVp 30.4 28.5 25.1 25.7 22.1 21.2 20.1 18.6 17.9 16.5 15.5 13.7 4.2 4.7 4.6 4.8 6.1 5.0 5.0 6.0 10.3 9.6 9.5 10.8 2.2 > 2.3 i 1.8 1 1.2 : 1970 - I p 19.7 13.4 8.9 4.3 5.2 9.7 - ; 2.2 i.8 1.8 L1 ; : $ 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance jS Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, Maj tional Association of Mutual Savings Banks, Departments of Commerce and Agri- j culture, 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 interpolation# 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. N£T INCREASES IN MORTGAGE DEBT OUTSTANDING Quarterly Billions of dollars, seasonally adjusted annual rate TOTAL 24 TOTAL RESIDENTIAL 1-4 FAMILY COMMERCIAL MULTIFAMILY 1966 1968 1970 T A B L E 14: COMMITMENTS WEEK ENDED Mar. Apr. May ' June July I | TOTAL TOTAL OFFERED FN MA A u c t i o n R e s u l t s IN IMPLICIT YIELD2(per $ MILLIONS cent) ACCEPTED 90- 1-YEARH 90- 6- & DAY MONTH 1-YEAR & OVER DAY 6MONTH 276. 4 239 0 60. 7 136. 5 47. 5 124. 5 79.,2 67.,0 9.16 9.12 9.19 9.14* 9.13 9.12 OVER 9 23 354.6 6 268.4 315.7 1 9 0 ,,2 1 8 5 ..2 41. 0 54.,0 121.,4 98.,2 27.,8 33..1 9.05 , 9.02 9.07 9.04 9.10 20 11 18 25 443.3 269.2 195.,5 102..2 121..1 63,.2 38..9 13..0 300.3 136..3 145,.2 86..4 86,.7 17,.5 19 .7 9.01 9.04 9.11 289.5 43..5 26..0 32.,4 38,.9 9.15 9.04 9.07 9.13 9.18 9.10 9.13 9.18 9.22 1 224.2 113,.8 15 29 249.7 156.3 31,.1 34,.2 30..6 71,.4 86,.7 56,.5 11,.3 7,.0 11..8 9.20 9.27 9.32 9.24 9.30 9.33 9.27 9.31 9.34 1 1 3 .3 . , 2 5 .0 3/ (250.0)- 73,.0 15 .3 9.20 9.21 9.22 395.4 5, 127,.9 9 8 .9 j 286.2 13 27 ) Note: Under the FNMA a u c t i o n u n d e r w r i t t e n m o r t g a g e s bid ject to an o v e r - a l l d o l l a r system, approved sellers 9.10 of G o v e r n m e n t - for FNMA f o r w a r d p u r c h a s e c o m m i t m e n t s , s u b l i m i t a n n o u n c e d b y F N M A in a d v a n c e . Bids a c c e p t e d b y F N M A a r e for d e l i v e r y at the s e l l e r ' s o p t i o n , and at a n y time w i t h i n the s p e c i f i e d p e r i o d . B i d s on p r o p o s e d h o m e s r e l a t e to c o n s t r u c t i o n not yet s t a r t e d on w h i c h m o r t g a g e s m a y be d e l i v e r e d o n l y a f t e r c o m p l e t i o n and o c c u p a n c y . 1 For 2 A v e r a g e s e c o n d a r y m a r k e t y i e l d a f t e r a l l o w a n c e for c o m m i t m e n t fee and r e q u i r e d p u r c h a s e and h o l d i n g of FNMA s t o c k , a s s u m i n g p r e p a y m e n t of 15 y e a r s for 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s . Yields shown a r e g r o s s , b e f o r e d e d u c t i o n of 50 b a s i s p o i n t s fee paid by i n v e s t o r s to s e r v i c e r s . 3 FNMA "proposed announced construction" 1 of n e w h o m e s l i m i t of a c c e p t e d b i d s only. for n e x t a u c t i o n . 27 FNMA "AUCTION" RESULTS $ Millions AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD — \ 200 o I\ 150 » 6 MONTHS 100 1 YEAR AND OVER ^ 1 1 Y \ J / Y V y A | 3 MONTHS 50 . 1 v 1 1 1 1 1 1 I I 0 1 12 IMPLICIT YIELD 6-MONTH COMMITMENTS 10 z / — — . — - — I — < < i 1 1 1 ' 1 ' — 1 1 I I I - I 800 • K _ TOTAL BIDS RECEIVED — 600 \>\ A \ A y V j I (TOTAL BIDS ACCEPTED OCT. 1969 \ — , / \y AUG. A J DEC. 400 " 200 I I I I I I I JUNE 1970 1 AUG. 1' 1 OCT. 1 0 TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYPE OF FINANCING FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED 1 ANNUAL RATE) 2 9 - May June '* July Aug. Sept. Oct. Nov. Dec. 1,533 1,5.07 1,429 1,376 1,481 1,390 1,280 1,402 877 826 803 752 828 766 762 776 656 681 626 624 653 624 518 626 155.5 147.3 125.2 124.9 129.3 123.4 94.6 84.1 21.1 21.5 20.8 22.4 18.3 25.1 18.8 23.2 4.3 4.6 4.7 4.2 4.8 5.0 3.9 4.2 130.1 121.2 99.7 98.3 106.2 93.3 74.7 57.9 1,323 1,340 1.228 1,245 1,201 1,183 1,191 1,239 D - Jan. Feb. Mar. Apr. May 1,059 1,306 1,392 1,215 1,200 577 725 708 691 715 482 581 684 524 485 66.4 74.3 114.7 127.2 120.9 16.5 17.5 25.2 32.4 37.1 3.4 3.9 4.8 5.4 5.2 46.5 52.9 84.7 89.4 78.6 1,013 1,137 1,099 1,263 1,352 1 2 Total starts are Census estimates including farm for both permit-issuing and not.-issuing areas. A dwelling unit is started when excavation begins; all units in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field i 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. j Building permits before January 1963 are Census estimates for about 10,000 areas \ identified as having aJLocal building permit system in 1959. Estimates beginning I January 1963 are for approximately 12,000 and beginning January 1967 13,000, or \ all known permit-issuing places". Unlike starts, seasonally adjusted building per-! mits reflect direct adjustment for differences in the number of working days per I month, as well as other differences in timing and coverage. ] 29 PRIVATE HOUSING STARTS AND PERMITS Monthly, annual rates Millions of units SEASONALLY ADJUSTED 2.0 HOUSING STARTS 1.6 1.2 BUILDING PERMITS (in issuing areas) •CHANGE IN SERIES PER CENT OF. UNADJUSTED TOTAL STARTS MULTI-FAMILY AO- GOVERNMENT UNDERWRITTEN 1964 1966 1968 1970 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 25-YEAR 30-YEAR CONVENTIONAL MORTGAGES 3 1959-60 - High 1961-66 - Low 1956 - High 1967 - High - Low 1968 |- High I Low 1.969 - High Low 6.26 5.43 : 6.73 : n.a. n.a. 1970 - Jan. Feb. Mar. Apr. May June 7.99 6.30 5.80 6.70 6.70 6.40 7.40 6.75 8.35 7.55 9.29 9.20 9.10 9.11 9.16 8.55 8.55 8.55 8.55 8.55 8.55 5.44 6.81 6.81 6.29 7.52 6.78 8.62 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES .23 .25 .30 .11 .12 .12 .27 .40 .13 .74 •.65 .55 .56 .61 1 NEW Aaa CORPORATE BONDS 4 5.25 4a_4l 5.82 6.51 5.18 6.79 6.15 8.75 6.91 8.46 8.30 8.60 8.60 9.10 9.11 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 1.69 .77 1.16 1.28 —.27 1.20 .26 1.08 -.13 .99 .60 .50 .01 .05 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. J . Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Separate data availablel 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 fjor 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. I Based on FHA - die1d-o f f i ce opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages; prior to that Mate, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series. See note for Table 1. 31 MORTGAGE AND BOND YIELDS i Monthly HOME MORTGAGES: CONVENTIONAL Aaa CORPORATE BONDS: NEW ISSUES Y I E L D SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS) 1962 1964 1966 Basis Points 1968 1970 TABLE 17: Conventional Mortgage Terms EXISTING HOMES CON- FEES & LOAN/ LOAN/ CON- FEES & CHARGES EFFECLOAN TRACT . PRICE MATU- PRICE CHARGES EFFECMATURITY TRACT (PER / TIVE RATE (PER RITY RATIO RATE (YEARS) RATIO AMT. TIVE CENT) RATE (YEARS) (PER (PER ($000) (PER (PER CENT) RATE CENT) CENT) CENT) CENT) 2 3 2 3 4 NEW HOMES DATE * LOAN AMT. ($000) 4 1969 May J n>July. Aug. Sept. Oct. Nov. Dec. 7.50 7.62 7.76 7.86 7.89 7.99 7.97 8.07 0 .88 0.84 0 .92 0 .86 0 .92 0,.89 0,.96 1,.06 7 .65 7 .76 7 .91 8 .00 8 .05 8 .13 8,.13 8,.25 25 .8 25,.6 25,.5 25,.2 25,.3 25,.3 25.,3 25.,4 73 .2 73 .0 72 .0 72 .3 72 .9 72 .8 72 .8 71,.9 25.0 24.9 24.5 24.3 25.0 24.6 24.6 25.0 7.54 7.64 7.79 7.90 7.98 8.00 8.00 8.08 .0.83 0.86 0.91 0.93 0.91 0.90 0.90 0.93 7 .68 7 .79 7 .94 8 .05 8 .13 8 .15 8,.15 8..24 22 .7 22 .8 22 .8 22 .6 22 .2 22 .6 22,.6 22,.9 71 .9 71 .4 71 .7 71 .2 70,.7 70,.4 70,.4 70,.6 19.7 20.1 20.1 19.8 19.2 19.5 20.1 20.8 8.16 8.23 8.29 8.23 8.28 8.30 1.,08 1.,09 1.,11 1, 02 0. 98 0. 98 8.,34 ' 25.0 8. 41 25.2 25.0 8. 47 8.40 24.8 8.45 25.3 8.47 25. 1 69.,3 711f8 71.,1 71. 1 71.J 71.,4 25.1 24.9 25.1 24.5 25.3 25.6 8.13 8.23 8.26 8.20 8.18 8.18 0.94 1.02 0.98 0.90 0.94 0.97 8.29 8.41 8. 43 8.35 8.34 8.34 22. 4 22. 4 22.6 22.8 22. 8 23.0 ' 3 70. 70.2 70.4 70.4 70.3 71.6 20.5 20.4 20.6 20.4 21.1 21.6 1970 Jan. Feb. Mar. Apr. May June 1 2 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 c o m p a n i e s ) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerhuilders. 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 m o r t g a g e r a t e s — i n Table 16. Fees and c h a r g e ^ - e x p r e s s e d 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. Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Derived by FRB. 33 CONVENTIONAL MORTGAGE TERMS Monthly 30 MATURITY 25 EXISTING 20 15 80 L O A N / P R I C E RATIO NEW EXISTING _1 - I : 1 I I I II I I II I I 1 I i I II I I I i l l 65 Thousandsjof dollars LOAN A M O U N T EXISTING 1964 1966 1968 1970 CHANGE IN SERIES
@FedFRASER