Full text of H.16 Capital Market Developments : December 21, 1970

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[CAPITAL
(MARKET
DEVELOPMENTS

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




• 2 ^

INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

C a p i t a l Market Y i e l d s

8-13

C a p i t a l Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




'

TABLE 1: Yields, Volume and Reception
-

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

WEEK ENDING:

1970 - Nov.

6
13
20
27

8.63
8.40
8.39
8.20

8.09
8.07
8.05
8.02

Dec.

4
11
18
25

7.95
7.74
7.68

7.85
7.78
7.59

....

-

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

WEEK ENDING:

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
858
776
891
329

90
90
98
78

849
796
525
50e

92
85
58

6
13
20
27

6.00
5.95
5.85
5.35

6.28
6.12
5.87
5.44

280
452
660
214

Dec.

4
11
18
25

5.15
5.15
5.25

5.41
5.33
5.47

467
709
788
65 e

.

943
761
rill:

MUNICIPAL BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS

1970 - Nov.

2,231
1,651
1,840
1,120

BONDS SCHEDULED
WITHIN 28 DAYS

72
75
88
84

840
850
1,091
1,361

74
48
77.1

1,341
919
995

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

Sec

footnotes

to T a b l e




3

TABLE 2: Details on Inventories

DATE
OFFERED

'

12/17
12/16
12/15
12/15
12/14
12/10
12/10

75. 0
60.,0
45.,0
60.,0
200.,0
30..0
80..0
75..0
15..0
83,.0
45 •0
9 .0
15 .0

12/18
12/8
12/8
12/7
12/7

OFFERED

' AMOUNT " "
|
(MIL. $)

DATE
| RELEXSED

CORPORATE BONDSjLN SYNDICATE END OF LATEST WEEK
ORIGINAL ! RATING AND
YIELD CALL PROTECTION
ISSUER
| COUPON

ESTIMATED PROPORTION SOLD

Quebec Hydro Elec.
8-3/4
8. 75
10 yrs.
Aw
98%
CNA Fin Corp.
8-1/2
8. 55
10 yrs.
80%
Wabash RR
7-3/4
7.,75
40%
A
•* —
Litton Ind.
8-3/4
8. 75
Baa
50%
New York Tele.
7-3/4
7.,60
5 yrs.
10%
Aaa
——
Amer. Investment
9-1/2
9..50
5 yrs.
40%
Phila. Elect.
7-3/4
7.,75
Aa
35%
——
G E Credit
7-1/8
7..05
90%
Iowa Elect.
7-7/8
7..90
5
yrs.
Aa
80%
Pan Amer.
11-1/8
11.-125
Baa
90%
Cons,. Nat. Gas
7-7/8
7,,85;
Aa
5 yrs.
60%
New Bedford Gas
8-1/8
8 .00
5 yrs.
Aa
4q%
Miss. Pwr.
' 8-1/8
8 .10
5 vrs.
A
50%
CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
AMOUNT
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

-

NONE

INVENTORIES 1
MUNICIPALS

DATE

IN SYNDICATE
614
622
727
935
967

121
61
155
421
323

CORPORATES
IN SYNDICATE
15
71
64
119
369

N..C. - No call protection.
l

All figure.-, in m i l l i o n s of dollars.
Blue List is daily, average for week ended Friday, except
which is daily average of three days ended W e d n e s d a y .
All other figures are as of F r i d a y .




for latest week

BONDS IN SYNDICATE
Millions ^ d o l l a r s

Friday figures

n
I I i i n
u
CORPORATE BONDS IN SYNDICATE

Illl.lliillitUiLilL

SEPT.




JUN.

1970

\

SEPT.

TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE/
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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 (1/26)
4.07 (8/8)

1969 - High
Low

8.85 (12/5)
6.90 (2/21)

7.84 (2/26)
6.55 (1/12)

6.97 (12/26)
5.96 (1/24)

6.90 (12/18)
4.82 (1/28)

1970 - High
Low

9.30 (6/19)
7.68 (12/18)

8.60 (7/3)
7.59 (12/18)

7.55 (5/29)
6.17 (12/18)

7.12 (5/49)
5.33 (12/11)

1970 - Nov.

27

8.20

8.02

6.32

5.44

Dec.

4
11
18

7.95
7.74
7.68

7.85
7.78
7.59

6.25
6.23
6.17

5.41
5.33
5.47

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
2 2 - 2 4 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.
1




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S V Z
h
CORPORATE A a a /

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

1966




1967

1968

1969

1970

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE 1

PERIOD

STATE AND LOCAL 2

1970

1969

1968

1970

1969

1968

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

1
i
;

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

April
May
June

3,170
3,909
3,389

2,748
2,076
2,530

1,428
1,866
2,411

1
!
;

1,647
995
1,088

1,801
1,110
737

1,318
1,143
1,395

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

2,143
1,432
1,557

I
j

1,338
1,355
1,728

1,097
808
559

1,469
1,699
1,444

October
November
December

3,800e
4,050e

1,933
2,375
2,532

2,129
1,767
2,054

1,860
1,600e

1,280
886
816

2,230
1,021
1,115

4,105
3,730
4,421

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

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

7,977
10,468
8,560

6,218
7,354
6,332
6840

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

1st half
Three quarters .

18.445
27,005

13,572
19,904
26,744

10,882
16,015
21,965

Year

7,835
12,256e

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

Quarter
Quarter
Quarter
Quarter

Year

6,170
7,037

5,107
5,427
4,785
5,654
20,973

|

.

1
2

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.

3

Total gross proceeds excluding offerings
companies.




of

s a l e s and

consumer

finance

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

.

QUARTER
OR
MONTH

TOTAL

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

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

6,332
6,840

3,186
3,479

1,347
1 ,053

1,797
2,307

289
115

750
809

1,862
1,314

1,544
1,967

684
598

2,243
2,961

1970 - I
lie
Ille

7,977
10,468
8,560

4,577
6,994
5,987

1 ,235
1 ,282
914

2,147
2,190
1,659

222
135
83

922
710
287

2,085
2,584
2,445 ' 2,812
2,714
2,314

766
2,162
868

2,543
3,048
2,663

1969 - Oct.
Nov.
Dec.

1,933
2,375
2,532

969
1,164
1,346

313
226
514

651
984
672

59
8
48

105
303
401

260
453
601

745
622
600

120
201
277

808
1,099
1,054

1970 - Jan.
Feb.
Mar.
Apr.
Hay
June
July
Aug.
Sept.,

2,636
1,802
3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,800
4,050

1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,400
2,950

387
249
286
398
230
82
107
59
121
150
200

811
- 357
1,416
689
817
939
638
682
994
1,125
1,025

,639
540
906
1,109
600
1,103
843
630
1,241
1,100
970

234
226
306
62
1,747
353
144
279
445
375
675

1969 - III
IV

Oct.i(

Nov.®/
1

.

516
266
471
447
399
436
320
205
389
400
300

525
61
33
468
1,154
128
701
89
468. 20
1,021
26
617
68
338
ii
4
704
1,000
n.$.
800
n.a.

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.




.

952
680
911
1,310
744
994
1,143
682
838
1,200
1,380

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

-•»
x

November 30 thru December 18, 1970
/
i sstn:R

Corporates
NCNB
Santa Fe Pipeline
National Steel Corp.
Southern Calif. Edison Co.
Delmarva Pwr. & Lt. Co.
Maine Yankee Atomic Pwr.
Rockwell Mfg. Co.
Ohio Pwr. Co.
Mercantile Stores Co., Inc.
Panhandle Eastern Pipeline v
Pullman Trans. Leasing Co.
Detroit Edison Co.
Detroit Edison Co.
New England Pwr. Co.
New England Pwr. Co.
Gen. Tel. of Illinois
Dayton Pwr. & Lt. Co.
Median Mtg. Investors
Lykes Bros. Steamship Co.
City Investing Co.
Atlantic Richfield Co.
A. E. Staley Manuf. Co.
Gen'l Elec. Credit Corp.
Mississippi Pwr. Co.
Equity Funding Corp. of Am.
Republic Mtg. Investors




TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

v

S.F. debs.
40.0
Debs.
40.0
90.0
Bds.
1st. & Ref.
100.0
Mtg.
30.0
Bds.
1st. Mtg
75.0
S.F. debs.
35.0
40.0
1st. Mtg
25.0
S.F. debs.
40.0
Debs.
S.F. equip.
23.2
trst.
Gen. ScRef.
Mtg.
100,0
Gen. & Ref.
50.0
Mtg.
Cum. pref.
stk.
15.1
20.0
1st. M t g
26.0
1st. Mtg
23.8
Com. stk
Conv. sub.
debs.
14.0
50.0
Bds.
Conv. Debs . 40.0
100.0
Debs.
25.0
S. F. Debs
75.0
Notes
1st. Mtg.
15.0
20.0
Debs.
Conv. Sub
15.0
Debs.

.
.

MATURITY

i.UUPON
' RAT:: OR
OFFERN1.1 I..TKRING
IS!' COST
, YIELD

MOOI'Y'
RA T 1 M .

1995
1980
1995

8.40
8.75
8.00

8.45
8.75
8.00

A
Aa

1995
2000
2002
1995
1976
1995
1990

7.88
8.38
9.10
8.50
7.20
8.70
8.63

7.85
8.22
9.00
8.50
7.00
8.70
8.65

Aa
Aa
A
A
A
A
A

1985

8.75

8.75

A

2000

8.15

8.15

Aa

1976

7.00

6.90

Aa

1976
2000

7.00
8.50

—

1990
1988-1991
1990
2000
1995
1978
2000
1990
1990

——

#» —

6.74
8.48

Aa
A

-

——

7.50
8.30
7.50
7.70
8.13
7.13
8.13
9.50

7.50
8.30
7.50
7.70
8.13
7.05
8.05
9.50

7.25

7.25

——

• —

Aa'
A
—

A
—

--

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) •
November 30 thru December 18, 1970

ISSUER
Corporates
Trans. Gas Pipeline Co.
Am. Investment Co.
Pan Am. World Airways Inc.
Philadelphia Elec. Co.
Gulf States Utilities
U. S. Leasing Corp.
Iowa Elec. Lt. & Pwr. Co.
Halliburton Co.
Consolidated Nat. Gas Co.
Penna. Pwr. & Lt. Co.
Liberty Loan Corp.
Fidelity Mtge. Investors
Long Island Lighting Co.
New York Tel. Co.
Litton Indus. Inc.
Wabash Railroad Co.
Mead Corp.
CNA Financial
Fuqua Industries, Inc.




TYPE 2

1st. Mtg.
pipeline
totes
jOans Ctfs.
ids.
Lst. Mtg.
fotes
ids.
)ebs.
: >ebs.
?fd. stk.
Debs.
i Jonv. Sub
Debs.
:>ref. Stk.
Kef. Mtg.
] totes
Ms.
] )ebs.
51.F. debs.
Conv. sub.
debs.

AMOUNT
(MILLIONS
OF
DOLLARS)

COUPON
KATi: OR

MATURITY

50.0
30.0
87.4
100.0
30.0
20.0
15.0
50.0
45.0
30.0

1991
1976
1986
2000
2000
1974
2000
1995
1995

15.0
18.0
18.0
25.0
200.0
60.0
45.0
60.0
60.0

1981

15.0

--

NKi i.-TKRIST COST

8. 85
9. 50
11. 13
7. 75
7. 88
9. 25
7. 88
7. 95
7.,88
--

OFFER-

.MOOI'Y 1.

ING

RATIM.

YIELD

8.95
9.50
11.13
7.75
7.85
9.25
7.90
7.95
7.85

Baa
——

Baa
Aa
Aa
Aa
A
Aa

--

10..75

10.75

-—

7.,75

7.75

• —

--

——

2006
1976
1977
1995
1995

7,.75
8,.75
7,.75
8 .50
8,.50

7.60
8.75
7.75
8.50
8.55

Aaa
Baa
A
A
A

7 .63

7.63

B

1995

'«•

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

ISSUER
State and Local
N. Y. State
Texas
Charlotte, N. C.
California
Detroit, Mich.
DeKalb Co., Ga.
Pennsylvania, State of
Pennsylvania
San Antonio ISD, Texas
Nassau, Co., N. Y.
Salt River Project, Ariz.
Washington, State of
Los Angeles Dept. of Wtr.
and Pwr. Calif.
Los Angeles Dept. of Wtr. &
Pwr. Calif.
South Jersey Port Corp.
Michigan
Newton, Mass
N. Y. St. Bsg. Fin. Agency
Nebraska Pub. Pwr. Dist.
Nebraska Pub. Pwr. Dist.

TYPE '

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

94.5
25. 0
10. 0
75. 5
46.,0
15.,2
50,.0
75..0
30,.0
41 .2
40,.0
52 .0

Rev.

19.5

Rev.
Rev.
3.0.
G.O.
G.O.
Rev.
&ev.

19.5
16.0
60.0
15.0
90.9
50.6
100.4

Ohio, State of
G.O.
Penna. Higher Ed. Fac. Auth. Rev.
Bergen Co., N. J.
G.O.
Bridgeport, Conn.
G.O.
Richmond, Va.
G.O.
Rhode Island
G.O.
San Francisco, Calif.
G.O.
Rev.
Lansing, Mich.
z
G.O.
Maryland, State of




AMOUNT
(MILLIONS
OF
DOLLARS)

48.0
13.8
10.6
12.5
30.0
26.5
52.9
10.0
4.95

MATURITY

l.lilTON
j
. OFFER- >1001 'Y '
KAlV. OH
I<AT i
ING
:.l.. 1 .TEKYIELD
1 ST COST

1971-2000
1979-88
1973-94
1972-91
1972-200C
1973-97
1973-2000
1973-200C
1971-90
1971-99
1974-95
1972-90

4.27
4.07
4.52
4.30
5.61
5.45
5.57
5.57
4.74

2010

5.90

5.90

Aa

1976-95
1976-2011
1975-99
1972-81
1974-13
1973-93
2004

5.53
6.61
4.43
3.70
6.46

3.30-5. 50
3.90-6.50
3.20-5. 40
2.90-3. 90
3.00-6. 60
3.40-6.40
6.60

—

1972-91
1973-11
1972-91
1972-86
1972-91
1972-91
1972-91
1975-80
1974-86

——

5.07
4.57

2 .90-4.50
3 .50-4.50
3 .00-5.60
2 .75-4.75
3 .20-6.00
3 .10-5.90
3 .20-6.25
3 .10-6.15
2 .90-5.25
3 .00-5.70
3 .25-5.90
2 .90-5.20

6.60
4.53
6.90
--

3.885=4.24
4.52
4.S2&4.22
4.01
4.39

3.00-5.30
3.50-6. 90
3.00-5. 25
3.00-4. 75
2.90-7. 00
3.00-5. 40
2.90-5. 00
3.50-5.10
3,70-4.70

—
——

Aa
Aa
Aa
A-l
A-l
Aa
A-l
A
A-l
Aa

—

Aa
Aa
Aa
A
A
A
Aaa
• —
--

Aaa
Aa
A-l
Aa
Aa
Aaa

\

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

TYPE 2

ISSUER
State and Local
Illinois State Toll Hgwy. Auth.
Columbus, Ohio
Phila, Pa.
Phila. Pa.
Phila. Pa.
Hennepin Co. Minn.
Tenn. Valley Reg. Hsg, Auth.,
Miss.
Illinois Bldg. Auth.
Oakland Co., Mich.

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

1 COUPON
|
j RATE OR
OFFMRNET INTER- :
r;,(;
j EST COST
j YIELD

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

135.0
13.9
18.9
20.5
10.3
16.2

2010
1973-97
1972-01
1972-01
1972-01
1974-87

6.79
4.92
7.50
7 81
6.84
4.53

Rev.
Rev.
G.O.

16.0
49.9
36.5

1973-92
1971-89
1975-98

6.45
6.56
6.31-6.82

MOODY'S \
RATING

6.79
3.25-5. 70
4.25-7. 75
4.25-7. 75
4.25-7. 75
3.40-5.00
V
3.75
.80
3.20-5. 90
3.00-7. 00

A
Aa
Baa-1
Baa-1
Baa-1
Aa

Aa
A-l

Other
Fed. Home Loan Bank
Farmers Home Admin.
Quebec Hydro
31ec.

'

'

*
1
2

3

-

ads.
Notes
Deb#.

35.0

1975

6.50

6.50

300.0
75.0

1980
1999

7.00
8.75

7.00
8.75

A

>

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 gem-rat obligation;
Rev.-Ut.,revenue obligations secured only by income from public utilities;
Rev. -Q. -lit. , revenue, bonds secured only by income from quas i-ut i li t i vs ; 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)
A? o f peqembey
12J0
' AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
OF
\
OF OFFERING
DOLLARS)

Corporates
B. F. Saul Real Estate Invest
ment Trust
Abex Corps.
*Kaufman & Broad Inc.
Occidental Petroleum Corp.
Arvin Industries Inc.
Northwestern Bell Tel. Co.
Union Electric Co.
Commonwealth Edison Co.
Madison Gas & Elec. Co.
*American Finance System Inc.
Pub. Serv. Co. of Ind.
Elizabeth Wtr. Co.
Florida Pwr. & Lt. Co.
Carolina Pwr. & Lt. Co.
Penna. Elec. Co.
Alabama Gas Co.
Tampa Electric
Southwestern Bell Tel. Co.
Gen'l Tel. Co. of Wisconsin
Penna. Elec. Co.
Microdot Inc.
National Lead Co.




Debs.
Debs.
Debs.
Debs.
Debs.
Debs.
Bds.
1st. Mtg.
Bds.
Debs.
Bds.
Bds.
1st. Mtg.
Bds.
Debs.
1st. Mtg.
1st. Mtg.
Debs.
Bds.
Debs.
Notes
Debs.

15.0
25.0
20.0
100.0
15.0
150.0
50.0
100.0
12-15.0
30.0
50.0
17.0
& 0.0
65.0
30.0
16.0
30.0
200.0
15.0
30.0
20.0
100.0

Dec.
Dec.
Dec.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.

21
22
22
4
5
5
6
7
11
12
12
13
13
14
18
20
20
26
27

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)!
^ p f D e c e m b e r i 8 > 1970

ISSUER

TYPE

-

State and Local
Genese Co., Mich.
Paramus, N. J.
Memphis Indus. Devel. Corp.
Tenn.
Richmond Metro. Auth. Va.
New York St. Dormitory Auth
The Chicago Pub. Bldg.
Clark Co.
Oregon, State of
New Jersey, State of
San Antonio, Texas
Kentucky Turnpike Auth.
Vineland, N. J.
Easton Baton Rouge Parish, La.
Montgomery Co., Md.
Metro Wtr. Dist. of So. Cal.
Dallas Co., Tex.
Port of Seattle, Wash.
Sacramento Municipal Utility
Dist., Calif.

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

I
IG.O.
G.O.

12.2
10.7

G. 0.
G.O.
Rev.
Rev.
Rev.
Bds,
G.O.
Rev.
Rev.
G.O.
G.O.
G.O.
G.O.
Rev.

14.0
51.0
30.7
56.0
13.0
75.0
75.0
30.0
100.0
10.0
10.0
30.0
100.0
25.0
27.0

Rev.

50.0

—w

Dec. 21
Dec. 21
Dec.
Dec.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan,
Jan.
Jan.
Jan.
Jan.

22
30
5
5
5
5
6
7
7
7
12
12
12
14
12

Jan. 20

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.




TABLE 8: Stock Prices and Volume
TRADING VOLlft5L 2

STOCK PRICES 1
NYSE 3
INDEX

DATE

AMEX

NYSE

AMEX4

D.J. - IND.

1968 - High
Low

61.27(11/29)985.21 (12/13)
48.70(3/5) 825.13 (3/21)

33.24(12/20)
21.97(3/25)

17.1 (7/12)
8.3 (3/29)

9.3 (1/19)
2.9 (3/29)

1969 - High

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

16.5 (3/29)
8.6 (8/29)

8.0 (1/31)
3.6 (11/21)

Low

59.32(5/14) 968.85(5/14)
49.31(7/29) 769.93(12/17)

• High
Low

52.36(1/5) 825.92(/2/ll)
37.69(5/26) 631.16(5/26)

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

18.5 (12/4)
7.8 (8/14)

7.1 (1/2)
1.8 (8/14)

22.09
22.15

18.5
14.8
13.9

4.2
3.1
3.2

1.970

1970 - Dec.

'•

2 T S

4
11
18

816.06

48.65
49.08
49.06

S

T

825.92
822.77

J

K

-

22.08

-

S

:

—

"

"

"

2.
extent, and over the time periods, shown below.
3.

Price indices are as of end of week, volume ftgores are daily average
for the entire week.

4.

1941-43 = 1 0 .

Through;

From:
August 8, 1967
January 22, 1968
June 30, 1968

^

January 3, 1969"'
J u l y 7, 1969
January 2, 1970




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

Days/
Week
5
5
4
5
5
5

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

15

| STOCK PRICES AND TRADING VOLUME
1 AMEX

Weekly '

DJ
(Ind.)

NYSE
(Comp.)

1200

65

I I II I II II I I
STOCK PRICES

AMEX PRICE LEVEL INDEX

1120 60
1040 55

NYSE
COMPOSITE

960 50

880 45

800 40

DJ INDUSTRIALS

720 35
640 30
Millions of shares

AMEX TRADING VOLUME (DAILY AVERAGE)

NYSE TRADING VOLUME (DAILYAVERAGE)




TABLE 9: Security Credit

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstandings
- Sept.
Oct.
Nov.
Dec.

4,940
5,040
5,070

2,620
2,570
2,520

7,560
7,610
7,590

7,039
7,243
7,111

2,579
2,753
2,613

4,460
4,490
4,498

4,970

2,580

7,550

7,445

2,803

4,642

4,680
4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010

2,430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330
2,270

7,110
6,940
6,890
6,690
6,450
6,150
6,090
6,110
6,250
6,280

6,683
6,562
6,353
5,985
5,433
5,281
(4)
(4)
(4)
(4)

2,626
2,563
2,441
2,248
2,222
2,009
(5)2,180
2,083
2,236
2,163

4,057
4,099
3,912
3,724
3,211
3,272
(4)
(4)
(4)
(4)

1969 - Sept.
Oct.
Nov.
Dec.

-60
100
30
-100

-50
-50
-50
60

-110
50
-20
-40

20
204
-132
334

2
174
-140
190

18
30
8
144

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Get.

-290
-110
-50
-160
200
-10
-350
-10
110
90

-150
-40

-440
-170
-50
-200
240
-300
-60
-20

-762
-121
-209
-368
-552
-152

-177
-163
-22
-193
-26
-213

-585
42
-187
-188
-513
-61

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Change in
Outstanding:

--

-40
-40
—

10
30
-60

^

140
30

—
—
—

171
97
153
-73

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers' net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. .Broker data includes loans for regulated securi L i es; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
4 Series discontinued.
5 Changes in series.




'/

TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ m i l l i o n s )

1

1

DATE

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

SAVINGS .
SHARE CAPITAL
ANNUAL
GROWTH
NET
FLOW
RATE 1

NET
NEW
MONEY 2

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
FLOW
RATE 1

NET
NEW
MONEY 2

Not Seasonally Adlusted
9.3
7.0
4.0

5,082
4,203
2,549

1967
1968
1969
1969 - Aug.
Sept.
Oct.

95
303
-138

1970 - Aug.
Sept.
Oct; B./

176
575
315

——
-—

.

__
-—

2,376
1,143
-763

10,649
7,432
4,019

24
-269
-266

-8
879
-406

81
-8
138

550
1,827
1,144

9.3
6.0
3.1
-—
—

—
—

6,136
2,738
-1,003

15,371
11,635
6,568

-25
-104
-430

87
1,182
-544

511
575
1,064

726
2,402
1,459

1
2

315
386
497
268
437
483

5.6
6.8
8.8
4.7
7.6
8.4

m. —
——
——
--

— «•»

587
813
1,776
785
1,393
1.413

5.2
7.1
15.5
6.8
11.9
12.0

——
—
.

—

-—

8,512
3,881
-1,766
-1
-373
-696
592
567
1,202

4

Seasonally Adjusted
1970 - May
June
July
Aug.
Sept.
Oct. p/

9.3
6.3
3.4

-—
—

——

902
1,199
2,273
1,053
1,830
1,896

5.3
7.0
13.3
6.1
10.5
10.8

A n n u a l g r o w t h r a t e for m o n t h l y d a t a is t h e a n n u a l i z e d m o n t h l y p e r c e n t a g e i n c r e a s e in d e p o s i t s .
N e t N e w M o n e y is n e w d e p o s i t s n e t of b o t h w i t h d r a w a l s and i n t e r e s t .
Data for S & L s a r e for

insured associations only, which represent 96% of industry total resources.

'

3

R e g u l a r d e p o s i t s at m u t u a l

certain

4

SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.
Reflects revised seasonal adjustments.

savings banks

escrow accounts, which represent




a very

exclude items

s u c h as C h r i s t m a s

s m a l l p a r t of t o t a l

club and

deposits.

——
---

——

SAVINGS FLOWS (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

—

SAVINGS & LOANS A

-

—

1

1

'

-1 i i i i M i i i i i 1 i i 1 1 I I I I I I 1

MUTUAL SAVINGS BANKS
-

1
1967

1
1968




1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1969

1970

1971

/
T A B L E 11: Mortgage Commitments at Selected T h r i f t Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. S T A T E )
ASSOCIATIONS

TOTAL

NET CHANGE
ALL •
SAVINGS &
LOAN
ASSOCIATIONS

(Billions of D o l l a r s , Se asonally Adjusted)

>69 - S e p t .

9.2

6.4
6.1

2.8

Oct.
Nov.
Dec.

8.9
8.6
8.4

370 - J a n .
Feb.
Mar.
Apr.
May
June
July

8.2

Aug.

9.8

6.8

2.0

Sept.

9.1

7.2

1.9

l

7.9
7.6
7.8
8.0
8.2
8.6

5.9
5.8
5.6
5.4
5.2
5.4
5.8
6.1
6.5

2.7
2.7
2.6
2.6
2.5
2.5
2.4
2.2
2.1
2.0

-.31
•

1

-.33
-.24
-.25
-.17
-.30
-.26
.13
.24
.22
.35
.18
.29

MUTUAL
SAVINGS
BANKS
(N.Y. S T A T E )

1/

-.18
-.23
-.18
-.12
-.22

-.09
-.06
-.13

.38
.30
.40

.04
-.07
-.05
-.13
-.14
-.09
-.05

.27

-.09

.39

-.10

-.23
-.21
.26

B a s e d on d a t a from F e d e r a l H o m e L o a n B a n k B o a r d and S a v i n g s B a n k s A s s o c i a t i o n s o f
New York State.
N e t c h a n g e s are d e r i v e d d i r e c t l y from u n r o u n d e d o u t s t a n d i n g s
Subtotals
l e v e l s as r e p o r t e d and a f t e r s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e .
m a y n o t add to totals b e c a u s e of r o u n d i n g .
M u t u a l S a v i n g s B a n k s and total d a t a
include building loans beginning August 1967.




-.13

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

SfcL'S

N.Y.-MSB'S

Includes building loans beginning August 1967
1960




1962

1964

1970

k
TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

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

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adjusted
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

1969 - Aug.
Sept.
Oct.
Nov.

2,151
1,942
r 1,815
1,636

1,623
1,441
r 1,226
1,042

400
500
300
300

181
120
158
151

844
667
608
450

198
154
r 160
141

528
501
589
594

1970 - Aug.
Sept.
Oct.
Nov.

1,967
2,213
2,153
n. a.

1,568
1,851
1,786
n. a.

200
400
200
200

182
216
196

1,111
1,122
1,202

75
113
188

399
362
367

1969 - Oct.
Nov.
Dec.

1,750
1,648
1,913

1,204
1,078
1,315

292
228
314

130
144
279

601
555
571

181
151
151

546
570
598

1970 - J a n .
Feb.
Mar.
Apr.
^ May
June
July
Aug.
Sept.
Oct.
Nov.

1,469
1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074

919
1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754

231
199
140
76
65
81
165
168
228
195
124

25
143
186
188
155
201
142
175
245
170
n.a.

452
482
322
385
631
777
1,055
983
1,103
1,189
n.a.

211
220
161
195
199
222
213
83
151
200
n.a.

550
498
521
507
435
468
508
408
364
320
ii. a.

1966
1967
1968
1969

Seasonally Adjusted

1 : Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance'
and, through August 1968, the Federal National Mortgage Association, and there'
after 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 86 per cent of the net increase estimated for all holders in 1969.
R/

Data are revised

to r e f l e c t a n n u a l r e v i e w o f s e a s o n a l




factors.

ft

23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

2.5

TOTAL, INCL. FNMAGNMA

2.0

1.5

1.0
FINANCIAL INSTITUTIONS

1968




1969

1970

1971

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR - ^

QUARTER

TOTAL

MULTI-AND
COMMERCIAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

8.4
7.0

2.6
2.1

5.5
4.2

8.2
6.2

2.2
1.8

COMMERCIAL

FARM

1966 - IIIp
IVp

18.7
15.2

11.0
9.2

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
2.5
2.7

1968 - Ip
Hp
IIIp

27.1
25.9
26.5

18.4
18.0
18.2

15.4
14.8
14.6

3.0
3.2
3.5

6.3
5.7
6.5

9.4
8.9
10.1

2.3
2.2
1.8

1969 - Ip
Hp
IIIp
IVp

30.4
28.5
27.0
25.6

22.1
21.2
19.9
18.6

17.9
16.5
15.2
13.1

4.2
4.7
4.7
5.5

6.1
5.0
5.3
5.8

10.3
9.6
10.0
11.3

2.2
2.3
1.8
1.3

19.5
22.5
28.4

13.2
16.7
21.9

S.5
11.3
16.4

4.7
5.3
5.3

4.8
4.2
4.7

9.5
9.5
10.0

2.0
2.1
1.7

1970 - Ip
Hp
IIIp

1

2
3

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
Residential mortgage debt i n d u e s 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

1 4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1970

.

.

...

\

.

•

,

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD2(per cent)
ACCEPTED
901-YEARJ1
TOTAL
TOTAL
901-YEAR 1
66OFFERED
MONTH & OVER
DAY
& OVER
DAY
MONTH

10
24

441.3
575.0

180.2
215.1

91.0
41.4
48.8i 124.4

47.8
41.9

9.03
9.03

9.03
9.03

9.04
9.03

Sept.

8
21

384.2
207.8

200.1
195.3

45.6
40.1

117.0
121.5

37.5
33.7

9.06
9.01

9.04
9.01

9.04
9.02

Oct.

5
19

267.5
352.5

149.8
14917

62.2
53.2

73.1
88.1

14.5
8.4

8.90
8.89

8.92
8.90

8.97
8.95

Nov.

2
16

341.5
222.4

181.2
170.3

100.1
75.8

62.4
79.4

18.7
15.1

8.90
8.89

8.93
8.90

8.93
8.92

Dec.

7
28

166.5
165.5

54.7
42.1

60.9
72.1

12.2
10.5

8.56
8.51

8.54
8.43

8.57
8.47

1970 - Aug.

\

127.8
124.7
(125.0)—

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the 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 " p r o p o s e d

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.
Prior to August 10, 1970 the servicing fee was 50 basis points.


3
FNMA announced


construction"

limit

of n e w h o m e s

of a c c e p t e d b i d s

only.

for^next week's auction.

27

FNMA "AUCTION" RESULTS

$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

* 6 MONTHS

100

2V

1 YEAR
AND OVER

- ^ J

V

J

Y V

50
\

13 M O N T H S

\ S

a

L

v

i

i

i

i

r - T

i

i

i ^

i

T

0
p<
12

IMPLICIT YIELD
6-MONTH COMMITMENTS
—

10

"

—

'

8
I

1

I

i

l

l

1

1

1

1

I

~
$ Millions

800

-

:

k

600

TOTAL BIDS RECEIVED
400

200
/
|

|
JUNE

V
(TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




DEC.

i
FEB.

i

i
APR.

I I

i
JUNE
1970

i

i
AUG.

i
OCT.

i

i
DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1969 - Sept.
Oct.
Nov.
Dec.

1,481
1,390
1,280
1,402

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. p

1,059
1,306
1,392
1,224
1,242
1,393
1,603
1,425
1,509
1,570
1,692

1

2

828
766
762
776

653
624
518
626

TOTAL

129.3
123.4
94.6
84.1

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

18.3
25.1
18.8
23.2

4.8
5.0
3.9
4.2

106.2
93.3
74.7
57.9

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,201
1,183
1,191
1,239

1,013
46.5
52.9
1,137
1,099
84.7
90.6
1,263
80.8
1,321
1,306
89.4
92.1
1,275
1,326
87.7
91.2
1,371
96.8
1,506
1,580
—
-Total starts are Census estimates including farm for both permit-issuing and
noi.-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started.when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 1 3 , 0 0 0 , 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.




577
725
708
697
728
835
827
838
881
881
933

482
581
684
527
514
558
776
776
587
627
689

66.4
74.3
114.7
128.4
125.0
.135.2
140.8
128.7
130.9
139.6
126.9

16.5
17.5
25.2
32.4
37.1
40.7
43.4
34.1
34.3
40.4

3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.6
5.3
5.8

29

PRIVATE HOUSING STARTS: AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

HOUSING STARTS A /

1.6

1.2
BUJLDINGPERMITS
(in issuing areas)

•CHANGE IN SEWES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTIFAMILY
(2 or more)

A

.

-

-

GOVERNMENT UMOERWR1TTEN1

1
1964




1

1
1966

1111 ii 11 ii m
ii11
1 ii i ii ii

1
1968

1970

TABLE 16: Mortgage and Bond Yields
_EHA
MORTGAGES

DATE

CONVENTIONAL
MORT25-YEAR 30-YEAR
GAGES
2

3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES
.23
.25
.30

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - High
Low
1969 - High
Low

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
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

-.27
.40
.13

1970 - June
July
Aug.
Sept.
Oct.

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

9.16
9.11
9.07
9.01
8.97

8.55
8.60
8.60
8.50
8.50

-.51
-.47
-.51
-.47

1

2

3

4

.11

-.12
.12

-.61

1

NEW
Aaa COR-..
PORATE
BONDS
4

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91
9.11
8.63
8.48
8.42
8.63

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.69
.77

1.16

1.28
.27

1.20

.26
1.08
-.13
-.05
.48
.59
.59
.34

Neither mortgage nor bond yields include allowance for servicing costs which arc
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for ,30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

12

U

10

9

8

7

HOME MORTGAGES:

6

CONVENTIONAL
FHA

5
Aaa CORPORATE BONDS:
NEW ISSUES
_
.
4

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

200

100
+
0

-LLLLJ
1962




1964

1968

too

x TABLE 17: Conventional Mortgage Terms 1
NEW HOMES
CON- FEES &
TRACT CHARGES E F F E C - | M A T U R I T Y
RATE
(PER
CENT)

(PER
CENT)
2

7.99
0.89
7.97-^0.96
8.07
1.06

.16
.23
.29
.23

1.02

.31
.32

0.98
0.99
1.03

.33

1.05

.28

1.08
1.09
1.11

:3? 8:8

TIVE

1 (YEARS)

RATE

j

.3

8.13
8.13
8.25

8.34
8.41
8.47
8.40
8.45
8.48
8.49

Hi
8.50

LOAN/
PRICE
RATIO
(PER
CENT)

EXISTING HOMES
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE" LOAN
(PER
RATE
TIVE
RITY RATIO AMT.
($000) (PER
CENT) RATE (YEARS) (PER
($000)
CENT)
2
3
LOAN
AMT.

25.3
25.3
25.4

72.8
72.8
71.9

24.6
24.6
25.0

25.0

25.0
24.8
25,3
25.1
25.1

69.3
71.8
71.1
71.1
71.7
71.3
71.5

25.1
24.9
25.1
24.5
25.3
25.6
24.9

25.1

72:7
72.6

24.8

24.2

If:!

11:1

8.00

0.90
0.90
0.93

8.13
8.23
8.26

0.94
1.02
0.98
0.90
0.94
0.98
0.95
0.89

8.00
8.08

8.20
8.18
8.19
8.21
8.*2 7
8.19

0.88
0.88

8.15
8.15
8.24

22.6
22.6
22.9

8.29 22.4
8.41 22.4 L
8.43 22.6
8.35 22.8
8.34 22.8
8.36 23.0
8.37 23.1
8.41
8.42 ll:l
8.34 22.8

19.5

70.4
70.4
70.6

20.1
20.8

20.5
20.4

70.3
70.2
70.4
70.4
70.3
71.5
71.5

20.4 :
21.1
21.5
21.7,

n.7

21:0 5

71.5

20.6

20.6 *

Compiled by Federal Home L o a n B a n k 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 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 g'f e included-in the case
of new home mortgage rates--in Table 16.
2

Fees and charges--expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly
30
MATURITY
NEW
25

20

I i n n i i i ii il m n i

i i 15

80
LOAN/PRICE RATIO

NEW

75

70

I 111 11 I 11 i.i 111111111 ,i i i 6I5
Thousands of dolliars
LOAN AMOUNT




30

20
EXISTING

10

CHANGE IN SERIES