Full text of H.16 Capital Market Developments : February 20, 1973
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m
D E C O N T R O L L E D AFTER S I X M O N T H S
lEElMi
L.5.8
Confidential (F.R.)
February 2 0 .
J (J*r
4(ty
1973
, A-
CAPITALMARKET
DEVELOPMENTS
Capital Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.
v
INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Y i e l d s
Capital Market Volume
Stock Market
Mortgage Market
SYMBOLS:
e
Estimate
p
Preliminary
r
Revised
n.a.
Not available
TABLE 1: Yields, Volume-and Reception
CORPORATE BOND MARKET*
WEEK ENDING:
1973 - Jan.
5
12
19
26
Feb.
2
9
16
23
WEEK ENDING:
1973 - Jan.
5
12
19
26
Feb.
16
23
NEW ISSUE
Aaa
UTILITY
1
MOODY'S
— SEASONED
Aaa
-—
7.29
7.45
7.40
7.36
7.46
7.34
GROSS
OFFERINGS
BONDS SCHEDULED
WITHIN 28 DAYS'
7.11
7.12
7.15
7.18
34
373
248
176
100
80
94
81
n.a.
n.a.
nra.
h. a.
7.20
7.22
7.23
n.a.
179
245
234
75e
99
99
75
n.a.
n.a.
n.a.
YIELDS
BOND BUYER
MOODY'S
SEASONED 20
NEW ISSUE
Aaa
BOND INDEX
n.a.
MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS
4.95
4.90
4.85
4.90
5.08
5.03
5.00
5.08
52
467
467
364
5.00
5.16
5.16
5.06
451
493
307
232e
4.85
PER CENT
SOLD BY END
OF WEEK ,
PER CENT
SOLD BY END
OF WEEK
BONDS SCHEDULED
J WITHIN 28 DAYS
55
80
75
54
963_
942
,802
929
83
83
85
n.a.
586
712
I
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:
Sw
footnotes to Table 3
TABLE 2: Details on Inventories
\ DATi:
OFFERED
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
ISSUER
COUPON
AMOUNT
("MIL; $) .
Con Edison
C&P of West Virginia.
150.0
50.0
2/14
2/13
DATE
OFFERED | RELENSED
7 3/4
7 1/4
7.70
7.30
A
Aaa
5 yrs
5 yrs
ESTIMATED PROPORTION SOLD
10%
20%
CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
IN YIELD CALL PROT, PORTION RELEASED
YIELD
V AMOUNT
NONE
INVENTORIES 1
MUNICIPALS
IN SYNDICATE
BLUE LIST
|
DATE
1973 - Jan.
Feb.
19
26
805
821
193
356
2
9
16
828
780
1UU
157
120
112
CORPtiRATES
IN SYNDICATE
16
-
3 5
21
1
175
N.C. - No call protection.
l
All figures in millions of dollars. Rluo List is daily average for week ended Friday,except for latest week
of three days emlvd Wednesday. All other figures are as of Friday.
vhich i = daily average
TABLE 3: High Grade Bond Yields
DATE
NEW
CORPORATE
Aaa 1
MOODY'S SEASONED
CORPORATE
Aaa 2
1970 - High
Low
9.43 (6/19)
7.72 ( 1 2 / 1 1 )
8.60 (7/3)
7.48 (12/21)
7.55 (5/29)
6.17 (12/18)
1971 - High
Low
8.26 (7/30)
7.02 (2/5)
7.71 (8/12)
7.06 (2/12)
6.51 (6/18)
5.69 (3/23)
1972 - High
Low •
7.60 (4/21)
6,99 (11/24)
1973 - Jan.
Feb.
26
2
9
. 16
1
. 7.36 (4/28)
7.05 (12/8)
BOND
BUYER'S
SEASONED
" MUNICIPALS 4
U.S. GOVERNMENT
» 20-YEAR
CONSTANT
MATURITIES 3
7.12 (5/29)
5.33 (12/11)
...
6.23 (6/23)
4.97 (10/21)
6.19 (4/14)
5.74 (11/17)
5.54 (4/13)
4.96 (10/21)
7.40
7.18
6.87
5.08
7.38r
7.46
7.34
7.20
7.22
7.23
6.88
6.89
6.85
5.16
5.16
5.06
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
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody 1 s Investors Service.
N o t e — H i g h s and lows are for individual series and may be on different dates
for different series.
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE 1
STATE AND LOCAL '
1972
1971
January
February
March
3,205
3,369
3,229
3 ,115
3 ,000
6 ,075
2 ,636
1 ,802
3 ,539
i
j
April
May
June
3,275
3,598
4,341
4 ,042
3 ,300
4 ,375
3 ,170
3 ,909
3 ,389
I
July
August
September
3,582
2,893
2,720
4 ,147
2 ,532
3.,768
2 ,768
2;,274
3,,518
October
November
December
3,809
3,252e
2,650e
3.,387
3.,704
3 ;,673
9,803
11,214
9,195
9,711e
21,017
30,212
39,923
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
1
2
1972
1971
1970
1 ,776
2 ,002
2 ,237
2 ,732
1 ,851
2 ,258
1 ,340
1 ,214
1 ,555
1 ,988
2,002
2 ,260
1 ,891
2 ,167
2 ,013
1 ,647
996
1 ,085
i,800
i,951
1:,693
1 ,989
1 ,903
2, ,098
1 ,348
1,,359
1.,758
3.,777
4.,182
3,,980
2.>155
1,,838
1.,755e
1.,728
2.,264
2,,068
2 ,,190
12,,190
11,,688
10,,447
10,,764
7 3,977
10,,468
8, 560
11,,939
6,,015
6,,250
5,,444
5,,748e
6,,841
6,,081
5,,990
6,,060
4,,109
3,,728
4, 465
5,,862
23, 844
34, 325
45, 089
18, 445
27, 005
38, 944
12, 265
17, 709
| 23, 457e
12, 812
18, 902
24, 962
7, 837
12,302
18, 164
1970.
1
!
1
;
i
i
|
I
1,,924
1:,748
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
MONTH
TOTAL
GROSS PROCEEDS BY
GROSS PROCEEDS BY
TYPE OF ISSUER
TYPE OF ISSUE
COMMON
COMMUNIMEMO:
PUBLIC
AND
BONDS
CATIONS
ISSUES INCLUDED
UTILITY
MFG.
PUBLICLY PRIVATELY PFD.
FOREIGN
CONVERTIBLE
STOCK
OFFERED I PLACED
1,053
2,543
3,041
767
133
2,439
3,193
5,135
OTHER
ISSUERS 1
4,164
1 9 7 1 - IV
10,764
1972
9,805
11,214
9,195
9,711
5,361
4,634
4,192
4,084
1,593
2,781
1,867
2,458
2,851
3,798
3,136
3,182
74
245
57
511
449
836
352
1,525
2,109
1,629
1,045
2,261
3,495
2,680
2,874
3,673
1,190
433
1,283
1,269
1,201
62
12
395
150
811
980
1,217
891
3,205
3,369
3,229
1,767
1,907
1,677
604
412
577
834
1,041
976
59
12
3
195
83
233
392
529
604
533
988
740
752
498
227
1,529
1,354
1,658
3,275
3,598
4,341
1,622
1,676
1,336
789
744
1,218
864
1,148
1,786
15
100
130
92
226
131
581
761
767
1,219
738
1,538
178
391
800
1,297
1,708
1,235
3,582
2,893
2,720
1,807
1,523
863
657
421
789
1,118
948
1,070
3
17
37
450
183
203
574
452
603
798
635
1,247
586
237
33
1,624
1,568
838
3,809
3,252
2,650
1,763
1,361
950
593
865
1,000
1,453
1,029
700
84
120
162
161
40
356 1 , 3 3 2
389 '
792
300
750
371
651
25
1,749
1,421
1,575
l
- I
II
III
IVe/
'
Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commis ision. Quarterly supplements are availahlr.
1,476
1,369
856
1,047
4,541
4,240
4,030
4,745
1,408
1,450
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
Feb. 1, 1973
V.
ISSUER
TYPE 2
Conv debs
Whittaker Corp
Sub debs
Commonwealth Edison
1st mtge v
Federal-Mogul Corp
Bonds
Mississippi Power & Light
1st mtge
Tri-South Mtge Investors
Debs
TMC Mort. Inv.
Bene Int
Pub Service Co of Colorado
Com stk
Houston L & P
Com stk
Con Edison
1st mtge
Institutional Investors Trust
Bonds
Chesapeake & Potomac Tele of W. Va .Bonds
Idaho Power
Com stk
Commonwealth Ed. Co.
Pref stk
AMOUNT
(MILLIONS
OF
DOLLARS)
20.,0
25.,0
100.,0
30.,0
30.,0
25.,0
15.,0
30.,0
69.,4
150.,0
20.,0
50.,0
23..9
75.,0
\
\
MATURITY
V
1998
1993
2003
1998
2003
1980
COUPON
RATE : OR
NET INTEREST COST
4
9
7
7
' 7
7
7/8
5/8
5/8
1/2
3/4
3/4
•
OFFERING
YIELD
4.88
9.63
7.55
7.50
7.64
7.78
Feb. 16. 1973
MOODY'S
RATING
Ba
Aa
A
A
——
—M
__
—-
—
2003
T980
2113
7 3/4
7 7/8
7 1/4
7.70
8.00
7.30
Aaa
7.24
7.24
——
A
TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
ISSUER
State and Local
Pima Co., Ariz.
Lapeer Pub. S/D Mich
Dallas Co. Jr. Coll Dist., Tex
New Yolrk State Housing Finance
Agency
Los Angeles DWAP
Ljos Angeles DWAP
Miami Beach, Fla.
Minuteman Reg Vac. Tech S/D, Mass
Cleveland Heights-Univ Heights
Nebraska Pub Pwr Dist
Columbus City S/D. Ohio
High Point, N. C.
Detroit
Washington Sub Sanit. Dist., Md.
Richmond Metro Auth., Va.
TYPE '
G. 0.
G.O.
G.O.
AMOUNT
(MILLIONS
OF
DOLLARS)
10.7
12.5
30.0
G.O.
178.7
Rev.
24.7
Rev.
25.3
13.5
G.O.
G.O.
12.5
10.0
G.O.
Elec.rev.
10.0
30.0
G.O.
11.2
G.O.
19.0
G.O.
31.5
G.O.
55.0
G.O.
MATURITY
February 5 th ough 16, 1973
COUPON
|
MOODY'S
RATE OR
| OFFER
RATING
NET INTER- !
IL.C
EST COST J
YIELD
1974-1993
1974-1993
1974-1993
~ 4.91
4.91
4.76
3.50-5.10
3.50-5.10
3.40-5.00
1974-2005
2013
1979-1998
1973-1992
1974-1983
5.57
5.25
5.25
4.88
4.53
4.8?
3.60-5.67
5.35
4.20-5.20
3.30-5.00
3.60-4.60
3.50-5.10
3.80-4.95
3.50-5.00
1974-1993
1974-1993
1975-1996
1973-1987
1975-2010
4.44
5.18
5.08
5.45
3.40-5.40
3.70-5.25
'I
Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
tes genAral obligation;
In case of State and local government securities, G.O. denote
ublic utilities;
'.<ev. -Ut. , revenue obligations secured only by income from publi
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.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.
A
Aa
Aa
A-l •
A-l
Aa
A
Aa
Aa
Baa
A-l
A-l
10
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
^
<C
ISSUER
Marine Midland Banks
Central & Southwest Corp
Gen. Tele, Co. of Calif
Excel Investment Corp
Riviana Foods Inc.
Greater Jersey Bancorp
First City Bancorp of Texas
Ohio Edison
^Midland Mortgage Investors
Diversified Mortgage Investors
Jersey Central Power & Light
Pacific Gas & Electric
Public Service Electric & Gas
*San Diego G & E
Middle South Utilities
General Tele Co,, of Southeast
Southern Bell Tele & Tele Co.
^Baltimore Gas & Electric
«Lone Star Gas
^Niagara Mohawk Power Corp
^Indianapolis P. & L.
^Portland General Elect
*Massey-Ferguson Credit Corp.
Walter Kidde & Co.
Texas Eastern Transmission
-Western Union Tele.
Petrolane Inc.
First Wisconsin Mort. Inv.
Continental Illinois Corp
Arrow Investment L & D
Justice Mortgage Investors
TYPE
°n,inUed)
AMOUNT
(MILLIONS
OF
DOLLARS)
Debs
50.0
Com stk
57.3
Com stk
50.0
Com stk
20.0
Com stk
. 15.5
Bonds
20.0
Bonds
40.0
Pref stk
35.0
Bonds
25.0
Notes
50.0
Bonds
30.0
Com stk (rts) 125.0
Pref stk
60.0
Pref stk
30.0
Com stk
90.0
Bonds
25.0
Bonds
350.0
Com stk
45.0
Bonds
45.0
Com stk
52.5
Com stk
20.0
Bonds
35.0
Bonds
20.0
Debs
65.0
Com stk
84.0
.
Debs
60.0
Com stk
35.4
Bene. Hid.
26.3
Bonds
100.0
Bene Int
20.0
Debs
20.0
As of Feb. 16. 1973
APPROXIMATE DATE
OF OFFERING
Feb. 22
Feb. 27
Feb. 28
Feb.
Feb.
Mar.
5
Mar.
6
Mar.
6
6
Mar.
Mar.
7
Mar.
8
Mar.
12
Mar. 13
Mar. 13
Mar.
14
Mar.
15
Mar. 20
Mar. 21
Mar. 21
Mar. 22
Mar. 22
Mar. 28
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
INDEF
INDEF
INDEF
:
11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
" (continued)
of Feb, jfr, I???
AMOUNT
APPROXIMATE DATE
(MILLIONS
OF OFFERING
OF
TYPE
ISSUER
DOLLARS)
State and Local
9
Feb. 20
Raleigh, N. C.
15.0
G.O.
Penna.St. Pub Health Bldg.
Auth.
G.O.
33.7
Feb. 21
West Virginia
G.O.
40.0
Feb. 21
22.0
Suffolk Co., N.Y.
G.O.
Feb. 22
Rev.
North Texas University
15.0
Feb. 26
10.0
Cincinnati City Sch Dist, Ohio G.O.
Feb. 27
<3.0.
14.3
Genesee Co., Mich
Feb. 28
Albany, N.Y.
12.9
G.O.
Feb. 31
17.0
6
Huron Valley Sch Dist, Mich
G.O.
Mar.
13.5
G.O.
6
Hempstead, N.Y.
Mar.
St. Paul Ind. Sch Dist #625,
26.7
Minn.
G.O.
Mar.
6
15.9
Pasco Co.-Wide Sch. Dist, Fla. G.O.
Mar.
6
30.0
Vermont
G.O.
Mar.
6
80.0
.
New York City
G.O.
Mar.
7
^
100.0
Maryland, State
G.O.
Mar.
7
28.3
G.O.
Mar.
Miami, Fla
8
25.0
Mar.
15
Montgomery Co., Md.
G.O.
Rev.
10.0
Mar. 20
Tucson, Ariz
30.4
Baltimore, Md.
G.O.
Mar. 20
23.0
*Santa Clara Co. Fac. Corp, Cal G.O.
Mar. 21
10.0
Mark 26
Washington
G.O.
20.0
Mar. 27
Jordan S/D. Utah
G.O.
300.0
Apr. 11
G.O.
New York, N. Y.
50.0
"Sacramento Munic Ut. Dist, Cal Elec rev
Apr. 18
Included in table for first time.
Includes corporate and other issues of S15 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.
22
STOCK PRICES AND VOLUME
STOCK PRICES1'
NYSE INDEX 3l
D J . INDUSTRIALS
TRADING VOLUME 2
AMEX 4
1970 - High
Low-.
52.36 (1/5)
37.69 (5/26)
842.00(12/29) 27.02 (1/8)
631.16 (5/26) 19.36 (5/27)
1971 - High
Low
57.76 (4/28)
48.73 (1/4)
950.82 (4/28) 26.6.8 (4/28) 22.1 (2/12)
797.97(11/23) 22.72 (1/4) . 11.0 (9/17)
1972 - High
Low
65.14 (12/11) 1036.27(12/11) 28.53 (4/14)
56.23 (1/3)
889.30 (1/3) 25.61 (1/3)
21.8 (11/10)
1047.49
1039.36
1026.19
1003.54
26.68
26.51
26.31
26.09
19.3
20.4
26
65.22
64.95
64.51
63.05
19.2
4.0
4.8 3.8
3.9
16
61.79
61.90
61.93
980.81
979.46
979.23
25.60
25.50
25.40
16.6
17.2
17.1
3.7
3.8
3.5
1973 - Jan.
« '
5
12
Feb.
1.
•
18.5 (12/4)
7.8 (8/14)
11.2 (9/8)
18.6
7.1 (1/2)
1.8 (8/14)
1
6.7 (2/5)
2.7 (8/13)
7.4 (3/10)
2.6 (9/8)
Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.
2. • jiYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily "averaged for the entire week, (millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2 hours per week.
In recent years, however abbreviated trading to the extent, and over the time periods, shown below:
From
January 3, 1969
July 7, 1969January 2, 1970
Through:
July 3, 1969
" December 3 1 , 1969
May 1, 197.0
3.
12/31/65 =
4.
Average dollar value of shares listed.
Wed/
Week
13
TABLE 9: Security Credit
END OF PERIOD
CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 I BANKS 2 I TOTAL
CUSTOMERS 1
NET DEBIT
BALANCES
NET CREDIT
CUSTOMERS; NET EXTENDED BY.
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES
4,950
4,910
5", 400
2,410
2,400
2,440
7,360
7,310
7,840
5,700
2,490
2,510
2,520
2,530
2,560
2,650
2,690
2,780
2,830
2,850
8,190
8,690
9,140
9,540
9,760
10,160
10,350
10,560
10,630
10,650
-20
-10
40
-50
530
10
50
350
500
450
400
220
400
200
210
70
2Q
268
54
-30
-53
-129
-99
14
-128
-61
-41
6,180
6,620
7,010
7,200
7,510
7,660
7,780
7,800
7,800
20
-40
490,
300
480
440
390
190
310
150
120
20
50
20
10
10
30
90
50
90
50
20
(4)
(4)
(4)
2,160
2,170
2,220
It
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
2,488
2,542
2,512
2,459
2,330
2,231
2,245
2,117
2,056
2,097
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
60
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."
Th'e 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 securities; bank
data includes loans for the purpose of purchasing or.carrying any security, whether
regulated or not.
Series discontinued
if-
DATE
„
TABLE 10: Savings Flows at N on bank Depositary Intermediaries
($ millions)
MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY2
GROWTH
NET
1
RATE
FLOW
TOTALDEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
ANNUAL
NEW
MONEY 2
NET
GROWTH
1
FLOW
RATE
NET
NEW
MONEY 2
-
Not Seasonally Adjusted
19fl
1970
1971
l972e/
2 549
4 517
9 621
9.,764
1971 - November
December
1972 - January
631 .
1.,209
855
1972
625
1 ,200
785
November
Decemberp/
1973 - January e/
4.0
6.8
13.5
12.0
—-
———
-763
936
5,678
5,378
4,068
10,965
28,230
32,692
512
325
716
1,562 3,114
3,266
514
275
n.a.
1,877
3,401
2,750
3.1
8.1
19.3
18.7
-—
--—
---
-1,003
5,285
20,653
23,911
6,617
15,482
37,851
42,456
1,484
1,168
3,117
2,193
4,323
4,121
1,737
1,152
n.a.
\
2,502
4,601
3,535,
3.4
7.7
17.5 •
16.6
-1,766
6,231
26,331
29,289
1,996
1,493
3,833
---
2,251
1,427
n.a.
--—
Seasonally Adjusted •
1972 - Augus t
September
October
November
December £./
792 r
939
779
720
769
1973 - January e/
827
10.9
12.8
,10.5
9.7
10.2
10.9
-"""
——
— * ••
2,706
2,930
2,7P6
2,246
2,149
16.7
17.8
16.2
13.3
12.6
3,498
20.3 "
-—
--—
-—
—
3,498
3,869
3,485 '
2,966
2,918
14.9
16.3
14.5
12.2
11.9
4,325
17.4
—-'
Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Not New Money is now deposits net of both withdrawals and interest. Data for S&Ls arc for
. insured associations only, which represent 96% of industry total resources.
Regular deposits a„t 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.
-—
--
TABLE 11: Mortgage Commitments at Selected Thrift Institutions
DATE
TOTAL
OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y.
STATE)
ASSOCIATIONS
TOTAL
1
NET CHAN.GE
ALL
SAVINGS &
LOAN
ASSOCIATIONS
MUTUAL
SAVINGS
BANKS
(N.Y. STATE)
(Billions of Dollar a, Seasonally Adjusted)r/
Nov.
Dec.
16.6
16.6
13.2
13.1
3.4
3.6
•Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
17.2
18.5
19.6
20.5
21.6
21.3
22.7
22.3
23.4
23.2
23.5
23.3
13.4
14.4
15.3
16.0
17.0
16.8
17.1
17.8
18.7
18.5
18.8
*18.6
3.8
4.1
4.3
4.5
4.6
4.5
4.6
4.5
4.7
4.7
4.7
4.7
1
:
.20
.09
08
-.06
.23
1.36
1.13
.89
1.04
-.26
.38
.71
1.06
-.36
.38
-.19
.12
1.01
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20
.12
.15
n
Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's Include a minor amount of nonresidential commitments. S&L commitments include loans in process. 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
v
of rounding.
.11
•35
.20
.20
.08-.08
.08
-.05
.17
-.11
.04
.01
s
TABLE 12: Net Change in Mortgage Holdings
DATE
TOTAL iJ
INCLUDING
FNMA-GNMA
1
FINANCIAL INSTITUTIONS
SAVINGS &.I
LIFE
MUTUAL
LOAN
INSURANCE
SAVINGS
ASSOC. r , COMPANIES
, BANKS
TOTAL j COMMERCIAL
|
BANKS
FNMA-GNMA
Not Seasonally Adjusted
21,273
19,699
16,827
39,259
6,677
5,404
2,462
9,940
4,958
5,724
4,872
5,931
5,286
4,779
.5,114
4,674
5,692
4,717
5,563
4,918
4,684
4,984
1,500
1,600
1,500
1,600
1,400
1,400
1,500
1971 - Nov.
Dec.
3,847
4,371
3,558
4,118
909
862
468
524
2,101
2,367
80
365
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
^ Oct.
Nov.
Dec.
3,456
3,828,
4,464
4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
3,250
3,550
4,329
4,327
4,52%
5,060
1,112
1,178
1,264
1,361
1,434
1,489 •
1,451
1,477
1,155
1,393
1,524
1,164
290
315
464
400
453
516
472
515
537
484
513
1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
-23
-18
5
85
67
96
101
79
111
135
299
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
]
2
4 , 5 % L
5,179
4,714
4,738
5,212
1,000
2,787
2,682
1,845
3,938
2,459
2,052
2,348
1,221
23,781
24,074
21,736
41,647
9,350
9,561
10,172
24,160
2,720
3,453
2,758
3,313
2,926
2,673
2 5^123,101
Seasonally Adjusted (r)
454
-585
438
553
502
472
517
• tlr
/
79
97
90
139
255
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 bv National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and,„through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from thqse
derived from regular quarterly series because of minor conceptual differences for
Which adjustments aru not made in the mpnthly series; Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.
17
TABLE 13: Net Increases in Mortgage Debt Outstanding
1
Billions of dollars, SAAR TOTAL
RESIDENTIAL 3
1- to 4FAMILY
- I
II
III
IV
16.0
20.8
26.3
27.2
10.3
14.0
18.9
19.7
7.0
10.6
15.1
15.9
3.3
3.4
3.8
3.8
3.9
5.0
4.9
4.7
- I
II
III
IV
28.1
26.4
25.8
29.4
19.4
18.2
17.4
20.2
16.2
15.0
13.9
16.3
3.2
3.2
3.5
3.9
6.4
6.0
6.6
7.3
- I
II
III
IV
31.8
29.1
26.2
24.9
23.6
21.5
19.0
18.2
19.2
16.8
14.4
13.0
4.4
4.7
4.7
5.3
6.1
5.4
5.4
5.2
10.5
10.1
10.0
10.5
I- I
II
III
' iv "9
20.6
22.9
29.1
31.3
14.2
16.9
21.8
22.5
9.1
, 11.5
15.5
16.0
5.1
5.4
6.3
6.5
4.8
4.6
. 5.2
6.7
9.9
9.9
11.5
13.2
1.5
1.5
2.1
2.2
r I
II
III
IV
37.1
47.8
53.6
53.4
26.6
36.1
40.1
4a. 1
18.5
26.4
.31.4'
31.4
8.1
9.7
8.7
8.7
8.3
9.4
11.2
10.8
16.3
19.1
19.9
19.5
2.2
2.3
2.3
2.5
- I
II
Ille
IV
61.8
64.1
64.3
67.2
45.4
47.1
46.4
49.1
35.9
37.5
36.2
39.4
23.9
24.6
25.3
24.3
2.6
2.6
2.9
2.6
QUARTER
1
»
"
MULTIFAMILY
COMMERCIAL
9.5
9.6
10.2
9.8
.
, MULTI-AND
COMMERCIAL
.
-
14.5
15.2
14.9
14.6
FARM
7.2
8.4
8.8
8.5
1.8
1.8
2.5
2.8
9.5
9.2
10.1
11.2
2.3
2.2
1 8
1.9
2.2
2.2
1. 7
1.4
.
i i l l i i l l l i l l i .
r .
°
H
n i y
-
-
-
-
—
-
* - « >
TABLE 14: FNMA Weekly " A u c t i o n " Results
WEEK
ENDED
July
IMPLICIT YIELD 2 (per ccnt)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARI1
' 1-YEAR 1
90/ 6906TOTAL
TOTAL
& OVER
M0NTH & OVER
DAY
MONTH
DAY
OFFERED
2'4
123.9
113.0
113.0
-— V
--
—
—
7.63
7.62
--
7.63
7.65
7
21
106.2
114.6
81.7
87.2
81.7
87.2
Sept.^ 5
220.6
.295.9
151.2
148.1
151.2
148.1
352.8
271.2
186.4
211.5
224.9
162.7
211.5
224.9
162.7
49.2
36.2
49.2
36.2
--
82.2
108. 7
42.4
66.3
42.4
66.3
--
74.2
107.0
61.3
92.1
65.4
61.3
92.1
--
Aug.
y
18
Oct;
2 :
16
30
Nov.
Dec.
Jan.
'.
13
27
78.7
60.8^
11
26
8
22
Feb.'
5
"
128.7
65.4
7•62
—
-__
--
-—
--
"
--
•
--
'
—
——
—
(
7.71
-7.69
7.67
7.67
--
--
7.69
7.72
7.72
--
—
7.68
7.6%
--
7.69
——
--
—
-- /
---
Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments.
Average secondary market yields 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 38 basis points fee paid by investors
to servicers.
19
TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
DATE
2 - January
February
March
April
May
June
July
August
September
October
November
December
1973
3 - January
(
,TOTAL
2,439
2,540
2,313
2,204
2,318
2,315
2,244
2,424
2,426
2,446
2,395
2,344
1,395
1,281
1,310
1,215
1,308
1,283
1,319
1,373
1,382
1,315
1,324
1,196
1,044
1,260
1,003
989
1,011
1,032
925
1,051
1,045
1,131
1,071\
1,148
150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.9
2,468
1,423
1,045
155.3
UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER
37.4 7.5
27.8 8.0
37.7 10.5
29.1 8.5
32.4 9.4
31.9 9.6
26.2 9.4
30.3 9.9
28.2 8.9
25.4 8.5
21.3 8.0
42.3 5.8
106.0
117.8
155.7
172.9
186.1
184.8
171.9
190.8
167.3
184.3
157.8
102.8
BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237
2,265
2,216
2,139
2,377
2,185
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 are Census estimates based on 13,000 or all known permitissuing places. Unlike starts:, seasonally adjusted building permits reflect
direct adjustment for differences in the number of days per month, as well as
other differences in timing and coverage.
The 1972 SAAR Starts figures have been revised.
\
20
TABLE 16: Mortgage and Bond Yields
FHA
DATE
30-year
CONVENTIONAL
MORTGAGES
3
SPREAD BE-'
TWEEN YIELDS
. ON CONV. &
FHA MORT-'
GAGES 5
SPREAD JJETWEEN
.YIELDS-ON NEW
CORPORATE BONDS
- AND
FHA MORTGAGES 6
NEW
ISSUE
Aaa
UTILITY
4
.52
-.36
1971 - High
Low
7.97
7.32
7.95
7.55
28
19
8.26 "
7.02 '
1972 - High
Low
7.57
7.45
7.70
.7.55
14
06
7.40
7.09
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Augus t
September
October
November
December
7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56
7.57
7.57
7.56
7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70
7.70
7.70
7.70
11
14
10
10
07
06
11
10
14
13
13
14
7.21
7.34
7.24
7.45
7.38
7.32
7.38
7.37
:
7.40 .
7.38 7.09
7.15 '
1973 - Jan.
7.55
7.70
15
1
2
3
4
5
6
„
7.38
.61
.05
"•
, .28
' .12
.21
.05
.15
.22
.16
• 18
.16
.19
. .61
.55
.32
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.
*
Based on FHA-field-office opinion on typical contract Interest rates (rounded)
on conventional first mortgages prevailing in the market"areas of insuring
offices.
.
See note for Table 1.
;
Yield spread equals conventional mortgage rate less FHA secondary market*yield.
Yield spread equals FHA secondary market yield-Jess new Aaa corporate bond
yield.
..
21
TABLE 17: Conventional Mortgage Terms
1
EXISTING HOMES
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PK1CF.
RATE ' (PER
TIVE
RITY RATIO
CENT) RATE
(PER
(YEARS) (PER
CENT)
CENT)
2
3
NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC-! MATURITY
(PER
RATE
TIVE i (YEARS)
(PER
CENT) RATE I
CENT)
3
|
23
LOAN/
PRICE LOAN
RATIO AMI.
(PER ($000)
CENT)
1971
Nov.
Dec.
7.65
7.62
0 .87
0 .93
7.79
7 .77
26.7
26.6
75 4
74 . 5
27,. 3
26,. 5
7.56
7.51
0.79
0.78
7.69
7 .64
24.6
24.6
74 . 6
74 . 6
23.2
23.9
1972
Jan.
Feb.
March
April
§ May
% June
I July
• Aug.
| Sept.
y Oct.
Nov. r/
Dec. p /
7.62
7.45
7.38
7.38
7.40
7.41
7^43
7.45
7.43
7.48
7.50
7.51
0..95
1,. 0 2
0 ,84
0 ., 8 3
0.,84
0.,85
0 . 83
0 . 86
0 . 86
0 . 88
0. 9 1
0.,93
7,. 7 8
7,. 6 1
7,. 5 2
7,. 5 1
7.. 5 3
7.,55
7.,56
7.,59
7. 57
7. 62
7. 65
7.,66 -
26.5
27.0
27.2
2,7.2
27.2
27.2
27.2
27.5
27.3
27.2
27.5
27.5
75,. 0
76,.5
76..2
76,, 0
76.,2
76.,5
77.,0
77. 5
77. 5
77. 3
77. 3
7 7 . ,9
27,. 6
27,. 8
28,. 2
28.,5
28.,5
27.,8
, 28.,2
27. 9
27. 9
27. 4
28. 0
2 9 . ,1
7.45
7.35
7.31
7.30
7.33
7.36
7.37
7.39
7.42
7.43
7.44
7.45
0.82
0.79
0.77
0.78
0.77
0.78
0.83
0. 81
0.83
0.84
0.84
0.83
7,. 5 8
7,. 4 8
7.. 4 4
7., 4 2
7.,46
7.,49
7. 50 7. 52
7. 55
7 . 57
7. 58
7.,59
24.7
25.4
25.1
25.2
25.2
25.5
25.6
26.3
26.2
26.1
26.3
26.1
74..7
75.-8
75.,6
75.,3
. 75.,4
76. 1
76. 2
76. 5
76. 5
76. 3
76. 8
7 6 . ,6
24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4
25.4
DATE
LOAN
AMT.
($000)
1
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 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 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.
-
@FedFRASER