Full text of H.16 Capital Market Developments : February 10, 1969

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GBiEiDEHTIAL
L.5.8 F.lj C o n ( i J e ^ i f B y ~

d e c o t o o 1 1 e d

i

F

m

six

writs *

J

Feb. 10, 1969

^
W***
CAPITAL

MARKET
DEVELOPMENTS

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17 Stock Market
-18-33

Mortgage Market




TABLE 1: Yields, Volume and Reception
YIELDS
WEEK ENDING:
NEW ISSUE 1
1968 - Jan.

1969 - Feb.

3~
10
17
24
31
7

"

tt£/

MOODY'S Aaa

CORPORATE BOND MARKET
VOLUME;2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS

6.90
6.93
6.92
6.92

6.55
6.58
6.59
6.59
6.59

0
283
177
393
96

6.97
n. a.

•6.63
n. a.

172
340

1968 - Jan.

'

1969 - Feb.

3
10
17
24
x

3 1

7 '

14

£/

674
r/689
n. a.

85.

WEEK ENDING:

1

-

MUNICIPAL BOND MARKET
VOLUME 2

YIELDS
MOODY'S
Aaa

844
718
700
354

--

67
52
57
81

BOND BUYER
20 BOND INDEX

GROSS
OFFERINGS

4.57
4.58
4.58
4.58
4.60

4.85
4.85
4.83
4.82
4.91

14
385
371
194
304

4.72
n. a.

4.96
n.a.

p/200
2/63

<

PERCENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

81
65
70
66
51

698
836
825
721
630

69
n. a.

720
n.a.

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 (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.
n. a.-- Not available.




,
_

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

75.0
26.0
20.0

,2/6
2/4
1/30

'

. Duke Power
Kansas City Pwr. & Lt.
Puget Sound Pwr. & Lt.

7
7-1/8
7-1/2

7.06
7.07
7.45

5 yrs.
5 yrs.
5 yrs.

Aaa
Aaa
Baa

ESTIMATED PROPORTION SOLD
85%
80%
98%

I
\

OFFERED

DATE '
| RELEASED

1/28
1/14

2/5
2/3

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

AMOUNT
13.0
60.0

DATE
1969 - Jan. 10
17
24
31
Feb.
7£/
N.C. - No call protection,

Oklahoma Gas & Elec.
General Tel. of Calif.

7-1/8

7.05

+

8

7-1/8

7.13

+

7

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
526
533
528
r/569
572

190
207
176
r/ 274
225

p Daily average of three days ended Wednesday.
millions of dollars.

Digitized for others
FRASER
as of Friday; in


Aa
A

5 yrs.
5 yrs.

CORPORATES
IN SYNDICATE
100
64
150
60
i Blue List is daily average;

40%
35%

BONDS IN SYNDICATE
Millions of dollars

CORPORATE BONDS IN SYNDICATE

200

100

—t
r
i
i
i
i
i
i.. i — i — i — r
MUNICIPAL BONDS IN SYNDICATE

T

T

T
300

200
100

SEPT.

DEC.

67




.

MAR.

JUN.

1968

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

J

DEC.

1
TABLE 3: High Grade Bond Yields
MOODY 1 S SEASONED
NEW CORPORATE
CORPORATE
ISSUES(ADJUSTED
Aaa 1
TO Aaa BASIS)

DATE

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

7.02 (12/13)
6.13 (8/30)

6.53 (12/27)
5.95 (9/13)

5.90 (12/20)
5.18 (8/9)

4.57 (12/26)
3.80 (8/8)

1969 - Jan. 10
17
24
31

6.94
6.93
6.94
6.92
6.97-

6.58
6.59
6.59
6.59 ;
6.63 V

6.01
5.97
5.96
6.05
6.13

4.58
4.58
4.58
4.60
4.72

Feb.

7j>/

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 IA

MOODY'S
CORPORATE Aaa

U S GOVT. 2 0 YR.
CONSTANT MATURITIES

TABLE 4: Long:term Corporate and State and Local Government
Security Offerings and Placements
—
(
I
n
millions of dollars)
NEW CAPITAL
CORPORATE

PERIOD
1969p

1968p

1

STATE AND LOCAL 2
1967

1969p

1,706
1,568
1,740

1,648
1,398
2,317

1,2006/
1,OOOe/

^,1,385
1,825
2,334

1968r/

1967

1,138
1,156
1,394

1,482
1,196
1,438

1,973
1,474
2,611

1,314
1,140
1,396

1,111
1,229
1,497

2,091
1,394
1,497

2,457
2,406
1,723

1,466
1,688
1,435

943
858
1,300

October
November
December

e/1,900
e/1,675
e/1,850

2,289
1,467
2,336

.2,227
997
1,112

974
1,400
1,182

1st
2nd
3rd
4th

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

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

3,698
3,850
4,589
.4,336

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

10,558
15,540
e/20,965

11,421
18,007
24,098

8,925
12,127
£,/16., 463

7,956
H,087
14,643

January
February
March
April
Mgy
June

Kl,800e/
l,000e

"

July
August
September

Quarter
Quarter
Quarter
Quarter

'1st half
Three quarters
Year

,

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

Quarter
Quarter
Quarter
Quarter

Year
e
p
1
2
3

4,943
5,265
4,882

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

TOTAL

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

1967 - III
IV
1968 - I
II
III
IV£/

6,833
6,294
5,178
5,705
5,133
5,733

4,604
3,107
2,465
3,105
2,606
2,559

1,551
2,137
1,724
1,644
1,361
1,829

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

1,771
1,607
1,800
1,428
1,867
2,418
2,144
1,433
1,556
2,099
1,729
1,905
1,850

903
796
766
719
1,046
1,340
1,244
637
725
1,016
938
605
950

. 546
585
593
438
521
685
528
400
433
574
355
900
500

678
1,051
989
956
1,166
1,345

234 "
93
313
172
124
n.a.

322
226
441
271
300
385
372
396
. 398
509
436
400
400

16
61
236
31
89
52
47
49
28
24
49
n.a.
n. a.

1,632
1,327
584
758
1,037
n. a.
224
161
199
139
380
239
605
211
221
395
194
n.a.
n. a.

NET PROCEEDS
FOR NEW CAPITAL
PUBLIC
UTILITY

1

COMMUNICATIONS
595
269
411
529
483
240

2,792
2,527
1,855
1,653
1,599
1,560

1,219
1,255
1,394
1,201
1,143
1,190

537
556
761
353
550
750
818
349
432
e/575
1/485
500
400

186
417
546
147
78
431
178
189
103
549
237
474
236
, 236
438
92
469
155
e/550 . e/75
1/390 e?145
20
250
150
575

2
OTHER .
ISSUES
1,976
2,040
1,356
2,159
1,758
2,435

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.
"• ,
•. •
..
•
' ,
. : v. ' •
•
•' •: . '
\




\

566
321
469
663
622
874
801
515
442
e/700
1/655
1,080
675

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)1
February 3 through February 7, 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

5.50

5.50

Ba

MOODY'S
RATING

Corporate
Duplan Corporation
^Surveyor Fund Inc.
Kansas City Power & Light
Company
Duke Power Company
Philadelphia Electric Co.

Conv. sub . debs.15.0
Com. stk.
29.2

1994

1st mtg. bds.
26.0
1st & ref . mtg.
bds.
75.0
Pfd. stk.
40.0

1999

7-1/8

7.07

Aaa

1999

7.00

7.06

Aaa

State & local Government
State of Connecticut
State of Vermont

-

G.O.
G.O.

60.0
30.0

1970-89
1970-88

4.68
4.58

Debs.

75.0

1999

n. a.

3.90-4.75
3.90-4.70

Aaa
Aaa

7.45

Aa

Other — ^
Province of Ontario

Rights offering.
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; Rey.-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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

• As

FsfrruarY 7. 1959.
APPROXIMATE DATE
OF OFFERING

Corporate
Chesapeake & Potomac Tel.
Company, (Washington)
Debs.
„
50.0
International Leisure Corp. Units
25.0
Tiesoro Petroleum
Debs.
15.0
Forest Oil Corporation
Conv. debs.
25.0
Northern States Power
Com. stk.
29.2
Continental Computer Assoc.
Conv. debs.
15.0
Owens Corning Fibreglass
Debs.
30.0
Sunshine Mining
Conv. sub. debs.
25.0
Pan American World Airways
Conv. debs.
175.0
Manufacturers Bank of Detroit Conv. notes
15.0
Pillsbury Company
Conv. debs.
20.0
Instrument Systems Corp.
Conv. sub. debs.
25.0
Southern Company
Com. stk.
65.0
Neon Products of Canada Ltd. Conv. debs.
20.0
State Street Bank & Trust Co, Cap. notes.
20.0
Del Monte Corporation
Conv. debs.
30.0
G.A.C.
Conv. debs.
70.0
Gulf States Utilities
1st mtg. bds.
50.0
General Telephone of Mich.
Debs.
22.0
*Bethlehem Steel Corp.
Debs.
100.0
*Texas Electric Svc. Co.
Bonds
15.0
*0hio Power Company
Debs.
15.0
*Ohio Power Company
1st mtg. bds.
70.0
Alco Standard Corporation
Com. stk.
30.0
Alexander's Dept. Stores
Com. stk.
20.0
G.S.I. Computer
Com. stk.
30.0
Gamble-Skogmo, Inc.
Cap. notes
20.0
Philadelphia Electric
Pfd. stk.
' 40.0
F. & M. Schaefer Corp.
Com. stk.
39.0
U.S. Financial
Conv. debs.
15.0
Beneficial Finance
Debs.
50.0
Levin-Townsend Computer
Corp.
Conv. sub. debs".
35.0
Integrated Container Svc.
Com. stk.
20.0
*Polaroid Corporation
Com. stk.
136.0




February
10
February
10
February 10
February 11
February
11 (rts. exp.)
February 11
February
11
February .11
February 12
February
12
February
13
February 17
February
18
February
18
February
19
February 24
February 25
February 25
February
. February
March
4
March
5
March
5
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite (rts. exp.)

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(0

ISSUER

feontl n nue^) T r e a S U r y "

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

As of February 7, 1969. .
APPROXIMATE DATE
OF OFFERING

State & local Government
•Great River Dam Auth.,
Oklahoma
•Kentucky Turnpike Auth.
*Puerto Rico Wtr. Resources
Authority
Tacoma, Washington
Anne Arundel Co., Maryland
Milwaukee Co., Wisconsin
•State of Maine
Los Angeles Dept. of Wtr.
and Pwr.
Fairfax Co., Virginia
*Local Public Authorities
Los Angeles Airport Comm.
Cobb Co., Georgia
•Mass. Port Authority
Pa. Higher Education .
*phila. School District,
Pennsylvania
•Richmond Metro Auth., Va.

Bonds
Bonds

20.0
90.0

February 11
February 18

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

60.0
16.0
12.0
11.6
14.9

February
February
February
February
February

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

21.0
17.2
159.5
60.0
32.5
105.6

18
18
18
18
18

February 19
February 19
February 26
February
February
March
March

4

Bonds

30.0

Bonds
Bonds

30.0
100.0

March
18
Indefinite

25.0

February 20

-

Other
. Province of Nova Scotia
*
1
2

S.F. debs.

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.
Postponed were Texas Gas Transmission's $50 million issue, and State of California
$100 million revenue issue, both owing to "market conditions".




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
S&P,
500

DATE

D.J. - IND.

TRADING VOLUME *
AMEX

4

NYSE

AMEX

1966 - High
Low

94.06(2/9) 995.15(2/9):
73.02(10/7) 774.32(10/7)

17.00(4/21)
12.07(10/7)

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

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

1967 - High
Low

97.59(9/25) 943.08(9/25)
80.38(1/3) 786.41(1/3)

24.52(12/29
13.78(1/27)

12.3(12/29)
6.9(1/6)

6.7(10/27)

1968 - High
Low

108.37(11/29) 985.21(12/3)
87.72(3/5) 825.13(3/21)

33.25(12/20
22.00(3/22)

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

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

1969 - Jan. io

100.93
102.03
102.38
103.01

937.22
935.54
938.59
946.05

31.52
31.98
32.60
32.66

13.4
11.7
11.8
11.9

6.2
6.7
r/8.0

7j/ 103.53

947.85

32.60

12.8

6.6

17
24
31
Feb.

2.1(1/6)

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.




STOCK PRICES AND TRADING VOLUME
AMEX

Weekly

D.J.

S&P

(Ind.)

(500)

"STOCK PRICES
30
27

AMEX PRICE LEVEL INDEX

24

S&P's 5 0 0

D J IND.

T

T
AMEX TRADING VOLUME

T

-NYSE TRADING VOLUME

mmmi
1965

1966




1967

iiliifclllltt
1968

1969

1040

104

980

98

920

92

860

86

800

80

740

74

TABLE 9: Stock Market Credit

CREDIT EXTENDED TO CUSTOMERS BY:
BROKERS 1
BANKS 2
TOTAL
END OF PERIOE

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:

1967 - Dec.

6^300

1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.r/I1
Nov. r/
Dec.2/.

6,170
6,150
6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,240

Change in
Outstanding:
1967 - Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct«r/ |
Nov.r/
Dec. 2./
1

2
3

2^460

,

2,430
2,420
2,370
2,350
2,360
2,410 %
2,420
2,490
2,520
2,560
2,630
2,710
-

8/760

7,948

2,763

5,183

8,600
8,570
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,950

7,797
7,419
7,248
7,701
8,268
8,728
8,860
8,489
8,724
8,859
8,994
9,757

2,942
2,778
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,406

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,590
5,543
5,572
6,040

.

3,422
3,717

250

20

270

748

265

485

-130
-20
40
240
210
50
-190
-40
-70
-140
r/-50
r/ £0

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

-160
-30
-10
220
220
100
80
30
-40
1.00
20
r/120.

151
378
-171
453
567
460
132
-371
235
135
135
763

-179
-164
-86
287
85
229
-24
-285
142
280
16
295

-328
-214
-85
166
482
231
156
-86
.85
-47
29
468

80

'

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 suchloans 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.
-




1
j,

\' . /
\ V

.

V •

:

TABLE 10: Savings Flows at N on bank Depositary Intermediaries
($ millions)

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

DATE

TOTAL
SAVINGS & LOAN ASSOCIATIONS
DEPOSITS
NET
SHARE CAPITAL
NEW
ANNUAL
ANNUAL
GROWTH
NET
GROWTH
MONEY2. NET .
RATE 1
FLOW '
FLOW
RATE 1

NET
NEW '
MONEY 2 .

Not Seasonally Adjusted
1966
1967
1968 £/

' 2,591
5,079
4,158

1967 - Nov.
Dec.
1968 - Jan.
1968 - Nov.
Deci
1969 - Jan. e/

4.9
9.3
7.0

321
627
262

——

359
r/674
n. a.

——

__

--

227
2,376
1,139

3,656
10,686
7,333

273
-17
162

/ 582
1,612
-251

——

293
r/-26
n. a.

648
1,579
-132

——

3.3
9.1
5.9
__

-552
6,136
2,676

6,247
15,765
11,941

552
157
-270

873
239
11

618
118

1,007
2,253

--

3.8
9.2
6.3

-—
--

__
--

-325
8,512
3,815
825
147
108
911
92
• n. a.

Seasonally Adjusted
1968 - Sept.
Oct.
Nov.
Dec.j)/

356
364
397
339

6.8
6.9
7.5
6.3

1969 —Jan.

n. a.

n. a.

1
2
3

p

e/

--

770
793
585
553

7,2
7.4
5.5
5.1

--

453

4.2

"——
- -- •
——

——
——

--

1,126
1,157
881
888
n. a,

7.1
7.2
6.1
5.5

--

n. a.

--

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. r/. Revised.




SAVINGS FLOWS (seasonally adjusted)
:

Monthly

'

Millions of dollars

1200

800
400

SAVINGS & LOANS

400

800
400
MUTUAL SAVINGS BANKS

1965

1966




1967

1968

1969

)
.'8

JABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL
...

OUTSTANDING! COMMITMENTS
MUTUAL .\
' .ALL1\
SAVINGS
SAVINGS &
BANKS, .
LOAN
(N.Y. STATE)
ASSOCIATIONS

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

TOTAL

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions Of Dollars, Setisonally Adjusted) 1 /

1967-Dec.
1968-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug,
Sept.
Oct.
Nov.
Dec. 2/

1

8.5
8.4
8.5
8.6
8.8
8.6
8.6
8.8
9.0
9.1
9.5
9.8
9.8

.

5.9
5.8
5.9
6.1
6.2
6.1
6.0
6.1
6.2
6.2
6.5
6.6
6.7

2.6
2.6
2.5
2.5
2.5
2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

-.04
-.05
.05
.18
.11
-.13
-.05
.19
.24

,.11

.35
.27
.03 .

.

.03
mmmm

. 10
.16
.11
-.15
-.10
.11
.08
.07
.22
.10
.12

\
\

of
Based on data from Federal Home Loan Bank Board and Savings Bank Association
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.




-.07
-.05
-.05
.02
.0
.02
.06
.08
.16
.04
• 13
.17
-.10

1
1

MORTGAGE COMMITMENTS OUTSTANDING (saar)
Billions of dollars

Monthly

10

TOTAL

S&L'S

MSB'S

1959




1961

1963

1965

1969

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

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

-52
-66
66
356

1965 - I
II
III
IV

4,761
6,365
. 6,469
6,303

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

823
1 1,749
1 1,805
j 1,322

965
946
1,072
1,078

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

1966-1
II
III
IV

5,413
5,671
3,953
3,088

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

795
551
508
469

1967 - I
II
. Ill
IV

2,623
4,896
6,275
6,290

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

151
1,200
1,751
1 1,537

770
786
839
758

492
2,147
2,585
2,364

860
657
521
869

350
106
579
762

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

1,421
1,540
1,788
1,969
2,227
2,101
1,819
1,950
1,953
2,308
2,081
n. a.

1,071
1,236
1,514
1,723
1,992
1,881
1,667
1,809
1,845
; 2,147
1,936
n. a.

300
400
400
616
616
616
500
500
700
800
700
400

'o.2l5
197
:
: 137
; 160
203
219
248
233
221
313.
310
319

175
97
188
68
216
169
200
201
J15
188
195
n. a.

350
304
274
246
235
220
152
141
1SS
161
145
172

381
542
789
879
957
877
719
675
809
846
731 .
846

•

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 are
not made in the monthly series. ^




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

TOTAL, INCL. FNMA

2,5

2.0

1.5

1.0

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

TABLE 13: Net Increases in Mortgage Debt Outstanding 1

QUARTER

TOTAL

jl- to 4RESIDENTIAL 2 1 FAMILY

MULTI- 1
FAMILY 1 COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1965 - I
II
III
IV

25.5
25.3
25.7
26.2

18; 6
18.5
19.3
19.6

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
8.3
7.9

2.2
2.1
2.2
2.4

1966 - I
II
III
IV

29.1
23.6
17.7
14.6

19.0
15.3
10.6
9.2

14.7
12.1
8.3
7.2

4.3 .
3.3
2.3
2.0

7.0
6.1
5.1
4.0

11;7
9.4
7.7
5.6

2.4
2.2
2.1
1.7

1967 - I
II
II
IV

16.2
20.3
28.0

9.9
13.7
19.1
20,9.

6.8
10.5
15.3

3; 1
3.3
3;8
4.A.

3.8
4.8
4.8
5,1

. 7.3
8.0
8.8
8.8

1.8
1.9
2.4
2.6

1968 - I
II
II.
IV

27.7
26.0
25.7
28.8

18,2
18.5
18.0
n.a.

16.3
14.6
14.6
n.a.

2.0
3.9
3.4
n.a.

6.3
5.3
5.5
n.a.

6.6
9.2
9.2

2.5
2.3
2.3
n.a.

.

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, Na- .
tional 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 by Federal Home Loan Bank Board
and the Federal Reserve.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamJLly mortgage de&t combined./
£./

Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

32

TOTAL

24
TOTAL
RESIDENTIAL

/ 1-4 FAMILY

COMMERCIAL

X
MULTIFAMILY
1965




1967

/'

•

TABLE 14: FNMA Weekly "Auction" Results
COMMITMENTS
TOTAL
OFFERED

WEEK
ENDED

TOTAL

IMPLICIT YIELD2/ (per cent)
IN $ MILLIONS
ACCEPTED
i- i /
909061-1/
6DAY
MONTH Year&ov4:r DAY
YEAR & over
MONTH

1968 - Dec. 2
9
16
23
30

119.9
105.1
93.7
123.3
104.4

57.9
56.1
56.6
56.3
62.4

17.5
18.4
15.1
15.3
20.4

25.8
23.5
32.6
31.6
32.3

14.6
14.1
8.9
9.4
9.8

7.43
7.47
7.52
7.55
7.61

7.46
7.51
7.57
7.60
7.65

7.35
7.42
7.46
7.48
7.4?

1969 - Jan. 6
13
21
27

82.1
127.5
124.3
232.9

59.8
57.9
61,4
61.0

16.9
. 8.1
9.8
8.4

28.4
36.7
39.1
38.6

14.5
13.0
12.5

7.63
7.67
7.69

7.48
7.52
7.54

14.1

7.82

7.66
7.68
7.72
7.86

80.0

.,5.3

35.9

38.8

7.98

7.99

7.82

320.6
Feb. 3
IOJJ/

Note:

(100.0)-/

7.66

Under the F M A 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

Fdr "proposed construction" of new homes only.

2

Average.secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis point fee paid by investors to
servicers.

3

FNMA announced limit of accepted bids for next week's auction.




FNMA WEEKLY "AUCTION" RESULTS
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

\

6-MONTHS
40

20

1 YEAR
j 9 0 DAYS
IMPLICIT YIELD

8.0

6 - M O N T H COMMITMENTS

7.6

7.2

JUNE

AUGUST




1968

OCTOBER -

DECEMBER

FEBRUARY

1969

APRIL

TABLE 15: Private housing starts and Permits
BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

STARTS.
UNADJUSTED
TYP E OF FINANCING
FHA VA OTHER

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1967 - Dec.

1,250

797

453

80.1

15.7

3.6

60.8

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

1,456
1,537
1,511
1,591
1,364
1,365
1,531
1,518
1,592
1,570
1,717
1,454

912
1,075
920
922
838
790
904
867
944
965
897
891

544
462
591
669
526
575
627
651
648
605
820
563

80.5
84.6
126.6
162.0
140.9
137.9
139.8
136.6
134.3
140.8
125.7
93.0

13.9
17.0
19.6
22.6
20.5
19.8
18.8
20.9
18.6
21.4
17.5
16.4

3.4
4.1
4,5
5.4
5.5
5.0
4.9
4.8
4.6
5.3
4.2
4.4

63.2
63.5
102.4
134.0
114.9
113.1
116.2
110.9
111.1
114.0
104.0
72.2

DATE

1

2

1,368

^

1,148
1,394
1,416
1,340
1,280
1,281
1,289
1,290
1,393
1,378
1,425
1,400

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
(in issuing areas)
f CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

40

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR
1957 - High
195# - Low
1959-60 '- High
1961-66 - Low
1966 - High
1967 - High
Low
,
1968 - High
Low

1968 — Aug.
Sept.
Oct.
Nov.
j
Dec.

CONVENTIONAL
MORTGAGES
3

n.a.
n.a.
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

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

7.35
7.28
7.29
7.36
7.50

7.30
7.30
7.25
7.30
7.40

5.63
5.35
6.24
5.43
6.73

1

SPREAD BETWEEN YIELDS
ON CONV, &
FHA MORTGAGES 4
.47
.15
.23
.25
.30 ,
.11
-.12
.02
- -'27

-.05
.02
-.04
-.06
-.10

.

1

NEW
Aaa CORPORATE
BONDS
5

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6,15

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

6.15
. 6.27
6.47
6.616.79

1.20
1.01
.82
.75
.71

.

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-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed.lines indicate periods of adjustment to changes in contractual interest
rates.
3
Based_on FHA-field-office opinion on typical interest rates (rounded) pn 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.
|
5-~_See note for Table 1. (Data prior to 1965 is based on a composite of issues
with and without call protection.)
n.a. Not available.




MORTGAGE AND BOND YIELDS
Monthly

8

\

/

HOME MORTGAGES
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES

1961




1963

1967

1969

32
TABLE 17: Conventional Mortgage Terms

DATE

NEW HOMES
CON^ FEES &
CHARGES
MATURITY
EFFECTRACT
(YEARS)
RATE
(PER
TIVE
CENT) RATE
(PER
CENT)
3
2
,

1

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

LOAN •
AMT. g.
($000

!

1967
6.41

0.84

6.54

25.4

72.7

21.5

6.51

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. 7 . 1 0
1
| Oct
7,09
7.07
l .Nov
L. tfec. 7.09

0.86
0.94
0.88
0.88
0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89

6.52
- 6.62
6.64
6.71
6.84
7.03
7.17
7.24
7.24
7.23
7.21
7.23

25.4
. 25.5
25.7
25.3
25.0
25.4
25.5
25.5
25; 5
25.6
25.4
26.0

72.9
74.5
74.3
73.4
73.2
74.4
73.7
73.6
74.2
74.5
74.1
74.0

21.7
22.2
22.4
22.2
22.1
22.6
22.5
22.8
22.5
23.1
22.7
25.0

6.57
6.58
6.59
6.64
6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

Dec.

0.83

6.64

23.1

73.1

18.4

0.82
6.70
0.81
6.71
0.79 - 6.72
0.80
6.77
0.87
6.95
0.86
7.12
0.83
7.23
0 . 8 5 . 7.26
0.82
7.25
0.84
7.22
7.21
0.82
7.23
0.85

22.7
22.6
23.0
22.6
22.5
22.6
22.5
22.7
22.6
22.5
22.7
23.4

73.7
73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.4
18.0
18.6
18.3
18.5
18.4
18.6
18.7
18.4
18.5
19.1
20.6

1968

.r
1

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

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.

3

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




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY

25

EXISTING

80

LOAN/PRICE RATIO

NEW

EXISTING
70

65
1963




1965

1967

1969