Full text of H.16 Capital Market Developments : December 9, 1968

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

L.5.S Cewfiientisl

DECONTROLLED AFTER SIX

OF R I C H M O N D

CAPITAL
MARKET
DEVELOPMENTS
o

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Market?

6-7

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

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market




TABLE 1: Yields, Volume and Reception
CORPORATE BOND MARKET
VOLUME; 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
MOODY'S Aaa OFFERINGS
OF WEEK
WITHIN 28 DAYS

YIELDS
WEEK ENDING:
NEW ISSUE 1
1968 - Nov.

Dec.

1
8
15
22
29
6
13

6.43
6.54
6.66
6.68

6.15
6.16
6.15
6.17
6.28

82
98
108
518
191

100
51
91
85
83

6.80

6.33

254
200

69

718
801
850
: 771
587
327

' ' '

WEEK ENDING:

•
MOODY'S
Aaa

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BOND BUYER
OF WEEK
20 BOND INDEX OFFERINGS

YIELDS

1968 - Nov.

1
8
15
22
29

4.25
4.25
•4.35
4.35
4.35

4.56
4.56
4.58
4.62
4.64

253
140
223
329
120

62
47
72
75
55

Dec.

6
13

4.40

4.76

214
329

80
n. a.

BONDS SCHEDULED
WITHIN 28 DAYS
794
848
774
587
.
493 673

1 Derived by adjusting to an Aap basis, new issues of publicly-offered, corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (expect 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.
n. a.-- Not available.




TABLE 2: Details on Inventories
DATE i
OFFERED

AMOUNT
(MIL. $)

12/3
12/2
12/2
11/26
11/25
11/22
11/19

OFFERED

35.0
20.0
10.0
50.0
31.0
40.0
40.0

12/2
12/5
12/5
12/3
12/5

Dec.

7
7-3/8
7
6-5/8
7-1/2
7
7-3/8

7.00
7.20
6.90
6.62
7.25
7.05
7.40

60,.0
150,.0
50,.0
50,.0
15,.0

.

Pacific Gas & Electric
Anaconda
Boston Edison
Florida Power, & Light
Public Service of N.H.

6-3/4
6-5/8
6-7/8
7
7-1/8

INVENTORIES 1
MUNICIPALS'
BLUE LIST
|
IN SYNDICATE

DATE
1968 -• Nov.

San Diego Gas & Electric
New England Power
Diamond States Tel.
Humble Pipeline
Mich. Consoldiated Gas
Northern Natural Gas
Louisville & Nashville R.R.

Aa
Aa
Aaa
Aa
A
A
Baa

5 yrs.
NONE
5 yrs.
10 yrs.
NONE
5 yrs.
NONE

ESTIMATED PROPORTION SOLD

,

30%
90%
65%
85%
65%
85%
40%

.

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

DATE

11/7
11/19
11/21
11/21
11/25

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

I ,

|

8
15 .
22
29

749
776
809
846

308
305
319
268

6g/

842

225

Digitized
N.C.for
- FRASER
No call protection, p Daily average o[ three
others as of Friday; in millions of dollars.


days ended Wednesday,

6.,70 •
6,.67
6..80
6..83
7..00

.27
.16
.12
.22
.22

Aa 5 yrs.
Aa 10 yrs.
Aaa 5 yrs.
Act
5 yrs.
A
5 yrs.

CORPORATES
IN SYNDICATE
75
58
125
146
40
1 Blue List is dail\

25%
95%
95%
40%
40%

BONDS IN SYNDICATE
Millions of dollars

'

CORPORATE BONDS IN SYNDICATE

200
100
.1.11 I ill

:

:

.

-__J

0

MUNICIPAL BONDS IN SYNDICATE
-

300

200
•

SEPT.

III

DEC

'67




MAP

JUN

1968

MAR

JUN

1969

•

!

I 100

SEPT.

DEC.

TABLE 3: High Grade Bond Yields

DATE

MOODY'S SEASONED
NEW CORPORATE
CORPORATE
ISSUES(ADJUSTED
Aaa 1
TO Aaa BASIS) .

U.S. GOVERNMENT;
20-YEAR
CONSTANT
MATURITIES 2

SEASONED
STATE AND LOCAL
GOVERNMENT
Aaa 3

1966 - High
Low

5.99(9/2)
4.82(1/7)

5.52(9/9)
4.73(1/7)

5.04(2/9)
4.50(1/21)

4.04(8/25)
3.39(1/10)

1967 - High
Low

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

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

5.73(11/17)
4.48(1/20)

4.15(12/28)
3.25(2/9)

1968 - High
Low

6.83(5/24)
6.13(8/30)

6.33(12/6)
5.95(9/13)

5.68(3/15)
5.18(8/9)

4.42(5/30)
3.80(8/8)

6.43
6.54
6.65
6.75
6.88 A--

6.16
6.15
6.17
6.28
6.33

5.48
5.53
5.59
5.64
5.76

4.25
4.35
4.35
4-35/
4.40 < ;

8
15
22
29
Dec.
6B/

1968 - Nov.

p
1
2
3

/

Preliminary.
•
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures.
Thursday figures. Only general obligation bonds are included; average term is 20
years.
SOURCE: MOODY'S INVESTORS SERVICE
Note^-Highs and lows are for individual series and may be on different dates for different series.
•




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

A

MOODY'S
^
CORPORATE Aaa

' U S. GOVT. 2 0 - Y R . .
CONSTANT MATURITIES

MOODY'S MUNICIPAL Aaa

1965




1966

1967

1968

1969.

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

NEW CAPITAL
CORPORATE

PERIOD
1969p
January
February
March

STATE AND LOCAL 2
1967

1968p

1969 p

1968 p

1967

1,135
1,152
1,379

1,482
1,196
1,438

1,706
1,568
1,740

1,648
1,398
2,317

April
M#y
June

1,385 1,825
2,334

1,973
1,474
2,611

1,310
1,131
1,392

1,111
1,229
1,497

July
August
September

2,091
1,394
1,497

2,457
2,406
1,723

1,446
1,677
1,330

943
858
1,300

e/1,900
S/1,725
&/l,625

2,289
1,467
2,336

e/2,200
e/1,100
e/1,000

974
1,400
1,182

5,014
5,544
4,982
e/5,425

5,364
6,058
6,584
6,092

3,666
. 3,833
4,453
e/4,600

4,119
3,837
3,131
3,556

10,558
15,540
e/20,965

11,421
18,007
24,098

7,499
11,952
e/16,552

7,956
11,087
14,643

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

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1,750e

1

'

1,1OOe

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

Quarter
Quarter
Quarter
Quarter

Year
e
p
1
2
3

4,943
5,265

5,207
5,913
6,338
5,657
23,115

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.
Note: Due to rounding components may not add.




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

QUARTER
OR
MONTH

1967 - Nov.
Dec.
1968 - Jan.
Feb.
Mar.
/
Apr. j J
May
June
July
Aug.
Sept.
Oct.e/
Nov.e/

TOTAL

GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING 1
COMMON
AND
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
OFFERED
PLACED
STOCK
FOREIGN | CONVERTIBLE

NET PROCEEDS

PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUES

5,464
6,208
6,833
6,294

3,263
4,017
4,064
3,107

1,811
1,465
1,551
2,137

390
726
678
1,051

60
65
234
93

553
962
1,632
1,327

2 ,442
3 ,014
2 ,792
2 ,527

997
1 ,268
1 ,219
1 ,255

543
548
595
269

1,382
1,228
1,976
2,040

5,178
5,705

2,465
3,105

1,724
1,644

989
956

313
172

584
758

1 ,855
1 ,653

1 ,394
1 ,201

411
529

1,356
2,159

1,500
2,385
1,771
1,607
1,800

645
1,087
903
796
766
719
1,046
1,340
1,244
637
725
1,015
935

551
1,020
546
585
593
438
521
685
528
400
433
500
500

304
278
322
226
441
271
300
385
372
396
398
450
375

19
30
16
61
236
31
89
52
47
49
28
n.a.
n.a.

298
608
224
161
199
139
380
239
605
211
221
n.a.
n.a.

512
1 ,109
537
556
761
353
550
750
818
349
432
575
500

404
278
417
546
431
178
549
474
236
438
469
550
405

82
68
186
147
78
189
103
237
236
92
155
75
145

469
881
566
321
469
663
622
874
801
515
442
700
675

1,428

1,867
2,418
2,144
I,433
II,556
1,965
1,810

p Preliminary, e Estimated by Federal Reserve. 1 Gross proceeds exceed net proceeds by the cost of
flotation. 2 For total see Table 4;
other issuers are extractive, railroad and other transporation
real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission
Quarterly supplements are available.
n.a. Not available.




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

ISSUER

December 2 through December 6, 1968.
COUPON
AMOUNT
RATE OR
(MILLIONS
NET INTERMATURITY
OF
TYPE '
EST COST
DOLLARS)

OFFERING .
YIELD

MOODY'S
RATING

Corporate
New England Pwr. Co.
Union Electric
>
San Diego Gas & Eiec. Co.
Tampa Electric Company




1st mtg. bds.
Com. stk.
1st mtg. bds.
1st mtg. bds.

20.0
56.7
35.0
30.0

1998
1998
1998

7-3/8

7.20

Aa

7
7-1/4

7 .00
7.10

Aa
Aa

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1
Dec. 2

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

(Cont'd)
COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

State & local Government
Philadelphia, Pennsylvania
Philadelphia, Pennsylvania
Hancock Co., Kentucky
Norfolk, Virginia
Detroit, Michigan

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

10.0
19.5
19.6
12.0
25.0

1970-99
1970-84
1993
1970-89
1998

5.28
5.50
n.a.
4.52
n.a.

4.00-5.50
4.00-5.30
5-3/8
3.50-4.60
5.88

Baa-1
Baa-1
A
Aa
--

2/
Other —
NONE

*
1
2
3

Rights offering.
n.a. Not available.
Includes corporate and other security offerings of $15 million and over,
State and local security offerings of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
In case of State and local government securities, G.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
December 6. 1968.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
Q0F OFFERING

Corporate
International Leisure Corp.
National Bank of Detroit
.Appalachian Power
Reading & Bates Offshore
Drilling Company
Saturn*Industries
GMAC
Lone Star Gas Company
Western Massachusetts Ej.ec.
Carter Group
Baltimore Gas & Elec. Co.
General Telephone of Mich.
Chris Craft Industries
*Penna. Power & Light Co.
^Northwestern Bell Telephone
Company
Cleveland Electric Illuminating Company
• *Panhandle Eastern Pipeline
*Duquesne Light Company
Alexander's Dept. Stores
Forest Oil Corporation
G.S.I. Computer
Kaufman and Broad
Natural Gas Piepline Co.
of America
Tesoro Petroleum Associates Investment Co.
*Witco Chemical Corporation
^Central Hudson Gas & Elec.
*Gamble-Skogmo, Inc.
^Famous Artists Schools
*Libby-McNeil & Libby
*F. & M. Schaefer Corp.

Units
Conv. cap. notes
1st mtg.,bds.

25.0
50.0
45.0

December
December
December

9
10
10

Conv. debs.
Conv. sub. debs.
Debs.
S.F. Debs.
1st mtg. bds.
Conv. debs.
1st mtg. bds.
Debs.
Conv. sub. debs.
1st mtg. bds.

20.0
15.0
100.0
30.0
15.0
15.0
40.0
22.0
26.0
40.0

December
December
December
December
December
December
December
December
December
January

10
10
12
12
12
16
17
17
24(rts.exp
6

Debs.

75.0

January

7

1st mtg. bds.
Debs.
1st mtg. bds.
Com. stk.
Conv. debs.
Com. stk.
Conv. sub. debs.

50.0
40.0
25.0
20.0
25.0
30.0
20.0

January
8
January
8
January
9
Indefinite
Indefinite
Indefinite
Indefinite

Pfd. stk.
Debs.
Debs.
Conv. sub. debs.
1st mtg. bds.
Cap. notes
Conv. sub. debs.
Conv. sub. debs.
Com. stk.

25.0
15.0
35.0
15.0
20.0
20.0
16.5
15.0
39.0

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

30.0

December
December
December
December

9
10
10
10

December
December

10
11

State & local Government
%Clinton, Iowa
New Madrid, Missouri
New Madrid, Missouri
Nassau Co., New York
Florida Outdoor Recreation
Development Council
State of Hawaii




Rev.-Rent.
Rev.-Rent. (elec.)
Rev.-Rent. (alum.)
G.O.
Rev.
Rev.-Rent.

100.0
85.0
38.0

20.0
30.0

TABLE 7- Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1.
(Continued)
AMOUNT
APPROXIMATE DATE
(MILLIONS
OF OFFERING
OF
TYPE
ISSUER
DOLLARS)
December 11
30.0
Rev.-Rent.
December 11
17.0
G.O.
Richmond, Virginia
Rockford Sch. Dist. #205,
December 11
10.0
G.O.
Illinois
*Courtland Industrial DevelDecember 12
40.0
Rev. -Rent.
opment Bd., Alabama
December 17
100.0
Rev. -Q.-Ut.
*Port of New York Auth.
December 17
12.7
G.O.
State of Mississippi
San Francisco Redevelopment
December 17
13.2
Rev.-Rnet.
Agency, California
Tampa Hillsborough Company
Expressway Authority
^Chicago, Illinois
"Union City, Tennessee
*Butler Co., Pennsylvania
"Nevada, Missouri
*Hampden Township Industrial
Development Auth., Pa.
Delaware River Joint Toll
Bridge Commission
Port of Astoria
Port Huron, Michigan
*State of New Jersey
^Springfield, Illinois
Cobb Co., Georgia
Penna. State Highway and
Bridge Authority
Other
*Banco Nacional de Obras y
Servicios Publicos, S.A.
Canadian Utilities, Ltd.
*

Rev. •Q.-Ut.
G.O.
Rev. -Rent.
Rev. -Rent.
Rev. -Rento

46.0
35.5
30.0
26.0
15.5

December
December
December
December
December

Rev.-Rent.

10.0

December

17
19

December
December
December
7
January,
7
January
Indefinite

Rev, -Q.-Ut.
Rev, -Rent.
Rev, -Rent.
G.O,
Rev ,-Ut.
Rev ,-Ut.

20.0
150.0
22.0
75.0
16.0
32.5

Rev.-Q.-Ut.

75.0

Indefinite

Ext. loan bds.
S.F. debs, w/wts.

20.0

January
Indefinite

15.0

Includes corporate^nd'other'iss^es of $15 million and over; State and local




14

TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

500°

TRADING VOLUME i

D.J. - IND.

1966 - High
Low

94.06(2/9)
73.02(10/7)

995.15(2/9) 17.00(4/21)
774.32(10/7) 12.07(10/7)

10.7(4/15)
5.0(9/23)

6.1(4/15)
1.3(9/23)

1967

97.59(9/25)
•80.38(1/3)

943.08(9/25) 24.52(12/29)
786.41(1/3) 13.78(1/27)

12.3(12/29)
• 6.9(1/6)

2.1(1/6

High
Low

6.7(10/27)

1968 - High
. Low

108.37(11/29) 985.08(11/29)32.54(11/29)
87.72(3/5)
825.13(3/21) 22.00(3/22)

17.1(7/12)
8.2(3/29)

9.2(5/31)
2.9(3/29)

1968 - Nov.

103.95
105.78
106.30
108.37
107.93

12.4
15.7
15.8
15.5
16.4

4.7
7.4
7.9
7.4
7.9

8
15
22
29
Dec. 6&

958.98
965.88
967.06
985.08
978.24

30.56
31.28
31.80
32.54
32.93

Preliminary.
Figures, except highs and lows are Friday's only. Highs and lows are for the
year and are not necessarily for Friday's.
Averages of daily trading volume on the New York and American Stock Exchanges.
Millions of shares.
1941-43 = 1 0
Based on actual dollar value, rather than a formula.







.D.J.
(Ind.)

S&P
(500)

1040

104

980

98

920

92

| 860

86

800

80

740

74

1
10
i
• |

5
0

20
15

10
5

0

TABLE 9: Stock Market Credit

END OF PERIOD

CREDIT EXTENDED TO CUSTOMERS BY
TOTAL
BANKS 2
BROKERS 1

CUSTOMERS1
NET DEBIT
BALANCES

Outstanding:

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

7,948

2,513
2,500
2,763

4,598
4,700
5,183

8,860

,797
,419
,248
,701
8,268
8,728
8,860
8,489
r/8,723
"" 8,865

2,942
2,778
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,402

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,589
5,463

20

20

300
60
270

168
89
748

112
-13
265

56
102
485

-30
-10
-50
-20
10
50
10
70
30
40

-160
-30
-10
220
220
100
80
30
-40
-50

151
378
-171
453
567
460
132
-371
234
142

-179
-164
-86
287
85
229
-24
-285
142
276

-328
-214
-85
166
482
231
156
-86:
84
-126

8,430
8,490
8,760

7,111

2,430
2,420
2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560

8,600

220
40
250

80

-130
-20
40
240
210
50
-190
-40
-70
-90

2,420

1967 - Oct.
Nov.
Dec.

6,010
6,050
6,300

2,440
2,460

1968 - Jan.
Feb.'.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.fc/

6,170
6,150
6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,300

8,570
8,560
8,780

9,000
9,100
8,920
8,950
8,910

7,200

Change In
Outstanding:
1967 - Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. •
Sept.
Oct.£/

"Bank ioaifto ^ h » r : h a n " r o : : : s " : : d d e a ^ s for purchasing or carrying .ecu-




TABLE,10: Savings Flows at IMonbank Depositary Intermediaries
($ millions)
MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW.
ANNUAL
HONEY'
GROWTH
NET
1
RATE
FLOW

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

NET
FLOW

ANNUAL
GROWTH
RATE 1

NET
NEW

Not Seasonally Adjusted
3,563
2,591
5,079.

1965
1966
1967

325
550
210

1967 - Aug.
Sept.
Oct.
1968 - Aug.
Sept.
Oct.

£/

238
r/505
190

7.4%
4.9
9.3
——

J
—

«

8.3%
3.3
9.1

4,458e
-552
6,136

11,959
6,247
15,765

1,527
227
2,376

8,396
3,656
10,686

283
53
94

646
1,193
495

623
494
454

181
r/38
80

388
1,102
531

626
370
325 : / 1 , 6 0 7
721
447 ' .

——

568
745
501
644
737
828

971
1,743
705

8.0%
3.8
9.2
——
——
—

——

5,985e
-325
8,512
906
547
548
551
r/287
527

Seasonally Adjusted
1968 - May r/
June ' £ /
July £ /
Aug. £ /
Sept. r /
Oct. E7

1
2
3

p

420
310
303
319
356
352

8.2
6.0
5,9
6.2
6.8
6.7

--

-—

5.4
7.1
4.7
6.1
6.9
7.7

988
1,055
804
963
1,093
1,180

6.3
6.7
5.1

6.1
6.9
7.4

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits
Net New Money is the net change in deposits net of both withdrawals.and interest. Data for S&Ls
are for insured associations only, which represent 96% of the total resources of the industry.
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,
Preliminary.




SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

1200

800

400

SAVINGS & LOANS

400

1 800

MUTUAL SAVINGS BANKS

400
1965

1966




1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

1

NET_CHANGE
ALL
MUTUAL
ALL
SAVINGS
&
SAVINGS
' TOTAL
SAVINGS &.
- LOAN
BANKS
LOAN
ASSOCIATIONS
(N.Y. STATE)
ASSOCIATIONS^
(Billions of Dollars, Seasonally Adjusted) 1/
1967-Oct.
Nov.
Dec.

1968-Jan.
Feb.
Mar.
Apr.
May
June
" July
Aug.
Sept.
Oct.

8.3
8.5
8.5
8.4
8.5
8.6
8.8
8.6
8.6
8.8
9.0
9.2
9.5

5.7
5.8
5.9
5.8
5.9
6.1
6.2
6.1
6.0
6.1
6.2
6.2
6.4

2.7
2.7

.19

2.6

-.04
-.05
.05

2.6
2.5
2.5
2.5

2.6
2.6
2.7
2.9
2.9
3,0

.16

.18
.11

-.13
-.05
.19
.24
.13
.33

MUTUAL
SAVINGS
BANKS '
(N .Y. STATE)

.18

-.01

.10

-.07
-.05
-.05

.15
.03
-.003

.16

.02

-.15

-.10

.02
.06

;08

.16

.11

.11
.09

.20

Based on data from Federal Home Loan Bank Board and Savings Banks Assoications 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.




.01

0

.08
.04
.13

MORTGAGE COMMITMENTS OUTSTANDING (saar)

Billions of dollars

Monthly

TOTAL

S&L'S

MSB'S

1959




1961

1963

1965

1967

1969

22
TABLE 12: Net Change in Mortgage Holdings 1

' DATE

. TOTAL
INCLUDING
FNMA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL
&.
SAVINGS
COMMERCIAL
LOANS
BANKS
BANKS

LIFE
INSURANCE
COMPANIES

FNMA

142
97
221
507

1965 - I
II
III
IV

4,955
6,528
6,624
6,454

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

823
1,749
1,805
1,322

965
946
1,072
1,078

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

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

1966 - I
II
III
IV

5,734
6,009
4,237
3,212

4,618
5,120
3,445
2,619

975
1,656
1,300
774

753
513
739
715

1,671
1,674
350
86

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

1,116
889
792
593

1967 - I
II
Iil
IV

2,857
5,079
6,489
6,530

2,273
4,790
5,696
5,528

151
1,200
1,751
1,537

770
786
839
758

492
2,147
2,585
2,364

860
657
521
869

584
289
793
1,002

1968 - Jan
. Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

1;421
1,540
1,788
1,969
2,227
2,101
1,519
1,950 1,898
n. a.

1,071
! 1,236
1,514
1,723
1,992
1,881
1,667
1,809
1,845
n.a.

300
400
400
616
616
616
500
500
700
800

215
197
137
160
203
219
248
233
221
313

381
542
789
879
957
877
719
875.
809
849

175
97
188
68
216
169
200
201
115

350
304
274
246
235
220
151
141
53
161

-

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 the Federal 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 arc
not made in the monthly series.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

3.0

2.5

TOTAL, INCL. FNMA

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

TABLE 13: Net Increases in

QUARTER
1965

I
II
III
IV

1966 - I

II
III
IV

" 1967

1968

I
II
III
IV
I
II

TOTAL

RESIDENTIAL

25.525.3
25.7

18.6

29.1
23; 6
17.7,
14.6

19.0
15.3

26.2

15.8

20.1
25.9
27.7
26.7
24.9

18.5
19.3
19.6

10.6
9.2
9.9
13.7
19.1

1- to 4FAMILY

Mortgage

MULTIFAMILY

Debt Outstanding 1
COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

2.2

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

8.0
8.1

2.1

8.3
7.9

2.4

14.7

4.3
3.3
2.3

7.0

2.4

2.0

5.1
4.0

11.7
9.4
7.7
5.6

3.1
3.3
3.8
4.4

3.8
4.8
4.8
5.1

7.3

1.4
1.7

2.0

5.8
4.7

12.1
8.3
7.2

6.8

20.8

10.5 .
15.3
16.5

18.3
18.4

16.3
14.5

3.9

6.1

8.0

2.2

2.2
2.1
1.7

8.8

2.2

8.0

2.1

8.6

2.2
1.9

IliilimiliWIlSSSS-SmSSSand the Federal Reserve.
.
.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage defrt combined.




r

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Q

t

J




Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

16

I 1 - 4 FAMILY

COMMERCIAL

MULTIFAMILY

1967

1969

TABLE 14: FNMA Weekly

WEEK
ENDED
1968 -Oct.

Nov.

Dec.

TOTAL
OFFERED1

Auction" Results

AMOUNTS IN $ MILLIONS
ACCEPTED
9061DAY
MONTH • YEAR

2.2

22.9
30.0
30.7
31.3

10.0

29.5
29.3

19.4
10.3

98.9
119.2
132.8
131.9

35.1
41.6
44.0
49.1

125.1
144.4
167.0
161.4

53.8
48.1
50.3
59.7

4.9
8.4
10.3

11.1

33.7

119.9

57.9
(55.0)

17.5

25.8

2.5
2.7
3.0

28.8

IMPLICIT YIELD
90DAY

6' MONTH

1YEAR

7.19
7.20
7.21
7.24

7.16
7.18
7.20
7.23

7.09

15.0

7.26
7.29
7.33
7.37

7.26
7.30
7.35
7.40

7.19
7.23
7.26
7.30

14.6

7.43

7.46

7.35

9.1
10.7
14.7

11.1

7.12
7.13
7.17

Note: Total accepted shown in parenthesis for most recent week indicates
FNMA announced limit before the "auction" date. Yields are gross to FNMA
and are based on successful bid prices after allowance for commitment fees
and initial stock purchase requirements and assuming a prepayment period
of 15 years for 30-year mortgages. One-year commitments are for new homes
only.
1 . Per cent of total offered to FNMA which is for one-year commitments on
new homes.




FNMA WEEKLY "AUCTION" RESULTS
$ Millions

120
A M O U N T OF ACCEPTED B I D S BY C O M M I T M E N T PERIOD

100

\

6-MONTHS

\ /
1 YEAR

v

9 0 DAYS

I M P L I C I T YIELD
6 - M O N T H COMMITMENTS

8.0

7.6

7.2

6.8
JUNE

AUGUST




1968

OCTOBER

DECEMBER

FEBRUARY
1969

APRIL

TABLE 15: Private housing starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

913 *
952
797

135.4
118.4
80.1

19.4
15.2
15.7

5.3
4.5
3.6

110.7
98.7
60.8

1,253
1,204
1,368

80.5
13.9
84.6
17.0
126.6 - 19.6
22.6
162.0
20.5
140.9
137.9
19.8
18.8
r/139.8
136.6
20.9
18.6
134.1
139.0
21.4

3.4
4.1
4.5
5.4
5.5
5.0
4.9
4.8
4.6
5.3

63.2
63.5
102.4
134.0
114.9
113.1
116.2
110.9
110.9
112.2

1,148
1,394
1,416
1,340
1,280
1,281
1,289
r/1,290
1,393
1,357

1967 - Oct.
Nov.
Dec.

1,496
1,590i
1,250

1968 - Jan.
Feb.
• Mar.
• Apr.'
May
June
July
Aug.
' Sept.
Oct;

1,456
1,537
1,511
1,591
1,364
1,365
1,531
1,518
1,592
1,548

1

2

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

UNADJUSTED
TYP!E OF FINANCING
FHA VA
OTHER

912
1,075
920
922
838
790
904
867
944
948

583
638
453
544
462
591
669
526
575
627
651
648
600

Total starts are Census estimates including farm for both permit-issuing and
non-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. Capehart military housing.units are excluded. Other starts are
derived as a residual, although total and FHA and VA starts are not strictly
comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963, are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.
r

Revised.

p

Preliminary.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED DATA

2.0

1.6
HOUSING STARTS

>

1.2

BUILDING PERMITS
* CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

DATE
'

1957 - High
1958 - Low
1959--60 - High
1961--66 - Low
1966 - High
.1967 - High
Low
1968 - High
Low
1968 - J une
July
Aug.
Sept.
Oct.

CONVENTIONAL
MORT25--YEAR 30-YEAR
GAGES
3
5 .63
5 .35
6 .24
5,.43
6,.73

2

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 4

n,• a •
n,> a *

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

6.00
5.55 .
6.30
5.80
< 6.70
6.65
6.40
7.30
6.75

.47
.15
.23
.25
.30
.11
-.12
.02
-.27

n.i a.
n.,a.
i a.
' n.
a.
a.

7.52
7.42
7.35
7.28
7.29/

7.25
7.30
7.30
7.30
7.25 >

-.27
. -.12
-.05
.
.02
-. 04

1

1

NEW
Aaa CORPORATE
BONDS
5
4.94
3.65
5.25
4,12
5.82 '
6.53
5.20
6. 66
6.24 .
6.65
6.54
6.26
6.30
r/6.57 .

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.11
1.26
.24
1.09
.27

,

.87
.88
1.09
.98
r/.72

Neither mortgage nor bond yields take into account servicing costs which are
much higher for mortgages than bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
2 Based on FHA'-field-of f ice opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and"15 years for 30-year mortgages. Over the period for which they can be
* compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3 Based on FHA-field-office opinion on typical interest rates (rounded) on 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.
4 FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
.
See note for Table I.
n.a. Not available.




MORTGAGE AND BOND YIELDS
Monthly

Percent

HOME MORTGAGES:

Aaa CORPORATE BONDS:

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms
NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
~~ DATE ' RATE
(PER
TIVE
(YEARS)
(PER
CENT) RATE
CENT)
2
3

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

1

EXISTING HOMES
CON- 1FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
RATE
(PER
TIVE
RITY RATIO
(PER
CENT) RATE (YEARS) (PER
CENT)
2
CENT)
3

LOAN
AMT.
($000)

1967
. Oct.
6.34 . 0.82
Nov. • 6.33
0.76
Dec,
6.41
0.84

6.47
6.45
6.54

25.4
25.3
25.4

73.8
73.4
72.7

21.2
21.2
21.5

6.39
6.42
6.51

0.78
0.77
0.83

6.52
6.55
6.64

22.5
22.7
23.1

73 .0
72 .9
73 . 1

17.3
18.3
18.4

1968
Jan.
6.39
Feb.
6.47
Mar.
6.50
Apr-.
6.57
May
6.69
June
6.88
July
7.04
Aug.
7.10
Sept.i / 7 . 1 0
7.08
Oct. 2/

Of 8 6
6.52
6.62
0.94
0.88
6.64'
0.88
6.71
. 0.95
6.84
0.95
7.03
0.85
7.17
0.87 r / 7 . 2 4
0.87
7.24
0.87
7.22

25.4
25.5
25.7
25.3
25.0
25.4
25.5
25.5
25.5
25.6

72.9
21.7 6.57 '
22.2 6.58
74.5
74.3
22.4 6.59
73.4
22.2 . 6.64 '
73.2
22.1 6.81
74.4
22.6 6.97
22.5 7.10
73.7
r / 7 3 . 6 r / 2 2 . 8 r > 7.12
74.2
22.5 7. f 1
74.3
23.3 7.08

0.82
6. 70
22.7
73,.7
18.4
0.81
6.71
22.6
73,.6
18.0
0.79 . 6.72 , 23.0
73,.3
18.6
0.80
6.77
22.6
72.,8
18.3
0.87
6.95
22.5
73.,1
18.5
0,86
7.12
22.6
73. 1
18.4
0.83
7.23
22.5
72. 6
18.6
0.82 r / 7 . 2 6 r / 2 2 . 7 r / 7 3 . 0 r / 1 8 . 7
0.82
7.25
22.6
72. 6
18.4
0.83
7.22
22.6
72. 5
18.6

r
l

Revised.
p Preliminary
Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups, (including mortgage companies) for purchase of ^single family homes. Data exclude loans for refinancing, reconditioning, or modernization; construction loans to
home-builders; and--in this exhibit--permanent loans which are coupled with construction
loans to owner-builders. Data prior to 1965 on a comparable basis with the new series
are pending. Related series on conventional mortgage rates only, based on unweighted
opinions of regional-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the
case of new home mortgage rates--in Table 16.

2

Pees and charges--expressed as a percentage of the principal mortgage amount—include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




;
f

CONVENTIONAL MORTGAGE TERMS
Monthly

MATURITY
NEW

EXISTING

20

LOAN/PRICE RATIO

75

NEW

EXISTING
70

65
1963




1965

1967

1969
* CHANGE IN SERIES