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DECONTROLLED AFTER SIX MOUTHS
c

o

m

- .

/
-

L.5.8" C o n f i d e n t i a l ( F . R . )

February 3 ,

3< J

QjolqulU

CAPITAL
MARKET
DEVELOPMENTS

[.

Capital Markets Section, Division of Research and Statistics,
I Board tfffifty*.mnr*of the Federal Reserve System, Washington, D. C.




-

fTlox^cd

i
1971

INDEX

3-5

D e v e l o p m e n t s in t h e C o r p o r a t e and Municipal Bond M a r k e t s

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 V o l u m e

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

Revised
Not a v a i l a b l e




—

TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1971 - Jan.

1
*
;
S
i

-

Feb.

1
8
15
22
29
5
12

WEEK ENDING:

1971 - Jan.

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

7.59
7.31
6.98
6.76

7.48
7.45
7.42
7.36
7.19

6.91

7.10

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

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

345
797
330
525

80
95
93
69

384
635e

64
n.a.

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

1
8
15
22
29

5.25
5.40
5.00
4.95
4.95

5.58
5.74
5.39
5.13
5.16

507
716

Feb. 5
Feb. 12

5.10

5.27
n.a.

333
455e

42
561
822

773
1,054
748
n.a.
n.a.
n,a.

BONDS SCHEDULED
WITHIN 28 DAYS

82
86
94
81
48

1,377
1,653
1,278
1,201
1,027

72

1,147
n.a.

with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
• Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




TABLE 2: Details on Inventories
DATE
OFFERED

[
1

2/4
2/3
2#
2/2
2/1
1/28
1/27
1/26

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
]ORIGINAL F RATING AND
ISSUER
COUPON 1 YIELD (CALL PROTECTION

AMOUNT
(MIL. $)
30.0
40.0
65.0
40.0
60.0
50.0
15.0
200.0

OFFERED

Texas Pwr. & Lt.
Pub. Svc. Colorado
Niagara Mohawk Pwr.
Pacific Pwr. & Lt.
Perm. Pwr. & Lt.
Assoc. Dry Goods
Gen'l Tel. Wise.
S. Western Bell Tel.

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

6. 95
,
7.
,17
.25
7,
.90
7.
7,
.15
7.
.15
.10
7,
6.
.80

Aaa 6 yrs
6 yrs
Aa
6 yrs.
A
Baa 6 yrs.
6 yrs.
Aa
A
10 yrs.
6 yrs.
A
Aaa 6 yrs.

ESTIMATED PROPORTION SOLD

'

25%
657.
35%
50%
35%
90%
50%
25%

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

RELEASED

AMOUNT

None

INVENTORIES I
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1971 - Jan.

8

15
22
29
Feb.

1

1

5

810
711
689
r856
909

CORPORATES
IN SYNDICATE

196
96
111
i 350

95
48
22
162

227

308

N.C. - No call protection.
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.
*
„




TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa1

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
6.13

(12/13)
(8/30)

6.55
5,95

(1/27)
(9/13)

5.90
5.18

(1/20)
(8/9)

4.85
4.07

(1/26)
(8/8)

1969 - High
Low

8.85
6.90

(12/5)
(2/21)

7.84
6.55

(2/26)
(1/12)

6.97
5.96

(12/26)
(1/24)

6.90
4.82

(12/18)
(1/28)

1970 - High
Low

9.30
7.68

(6/19)
(12/18)

8.60
7.48

(7/3)
(12/31)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/29)
(12/11)

1971 - Jan.

Feb.

1
8
15
22
29
5

7.59
7.31
6.98
6.76
6.91

7.48
7.45
7.42
7.36
7.19
7.10

5.58
5.74
5.39
5.13
5.16
5.27

6.44
6.36
6.21
6.09?
6.05
6.09

1

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
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's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series,
2




\

6
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 2
1969

1971

2,636
1,802
3,539

2,075
2,045
2,098

i 2,600e
j
!

April
Hay
June

3,170
3,909
3,389

2,748
2,076
2,530

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

October
November
December

3,851
4,050e
3,700e

1971
January
February
March

Z

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1970

2,100e

7,977
10,468
8,560
11,601
18,445
27,005
38,606e

1970

1969

1,340
1,214
1,551

1,262
987
538

1,647
995
1,088

1,801
1,110
737

1,338
1,355
1,728

1,097
808
559

1,933
2,375
2,532

1,860
1,742
2,214e

1,280
886
816

6,218
7,354
6,332
6,840

4,105
3,730
4,421
5,816

2,787
3,648
2,464
2,982

13,572
19,904
- 26,744

j

|

1
1

7,835
12,256
18,072e

6,435
8,899
11,881

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

Quarter
Quarter
Quarter
Quarter

6,170
7,037

Year
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




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

QUARTER
OR
MONTH

1970 - I
II
III
IVe
1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. e/
Dec. e/

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

ISSUERS 1

7,977
10,468
8,560
LI, 601

4,577
6,994
5,987
7,640

1,235
1,282
914
1,385

2,147
2,190
1,659
2,576

222
135
83

922
710
287
786

2,584
2,445
2,314
2,869

2,085
2,812
2,714
2,996

766
2,162
868
1,320

2,543
3,048
2,663
4,417

2,636

1,595
1,068
1,914

516

525
468
1,154
701
468
1,021
617
338
704
1,076

61
33
128
aa_

387
249
286

639
540
906
1,109

200
200

811
357
1,416
689
817
939
638
682
994
1,094
1,025
750

1,103
843
630
1,241
1,101
970
925

234
226
306
62
1,747
353
144
279
445
370
675
275

952
680
911
1,310
744
994
1,143
682
838
1,287
1,380
1,750

80

505

465

380

1,400

1,802
3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,851
4,050
3,700

Jan. e/ 2,750

1

PUBLICLY
OFFERED

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

266

3,041
1,931
1,831
1,731
2,425
2,390
2,950
2,300

471
447
399
436
320
205
389
385
300
700

2,000

300

2,022

800
700
450

20

26
68
11
4
4
n.a.
n.a.

230

82
107
59
121
386

600

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.




\

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. T r e a s u r y ) 1

1 SSl'KR

TYPE

v

AMOUNT
(MILLIONS
OF
DOLLARS)

Corporates
Texas Pwr. & Lt. Co.
Pub. Serv. Co. of Colo.
Unlroyal Inc.
Pacific Pwr. & Lt. Co.
Niagara Mohawk Pwr. Co.
Penna. Pwr. & Lt. Co.




30.0
1st. Mtg.
1st. Mtg. bds 40.0
100.0
Debs.
40.0
1st. Mtg.
65.0
1st. Mtg.
60.0
Debs.

MATURITY

I •
2001
2001
1996
2001
2001
2001

anii'ON
RATE OR
WET W K R EBT COST

7.13
7.25
5.50
7.88
7.38
7.25

February 1 thru February 5, 1971

OKFKRICi
N'
Y l 111
. :,)

6.95
7.17
5.50
7.90
7.25
7.15

MOOhY1^
RATING

Aaa
Aa
Ba
Baa
A
Aa

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

V

ISSUER

AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE2

MATURITY

COUPON
RATE OR
NET INTEREST COST

February 1 thru February 5, 1971

MOODY'S
RATING

OFFERING
YIELD

State and Local

*
1
2

3

100.0
15.0
18.0
18.0
16.3
14.4
21.3
11.0

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

California
Prince William Co, Va.
LOB Angeles DWAP
Anne Arundel Co., Md.
Yonkers,N. Y.
Hartford, Conn.
Alaska
Peabody, Mass.

1980-20
1972-1990
1977-96
1972-2001
1971-88
1972-2009
1972-1992
1990-91

5.52
4.69
5.47
4.93

3.90-5.70
2.75-5.00
3.60-5.30
2.80-5.50
2.70-5.00
2.60-5.30
3.00-5.80
2.80-5.20

—

4.77
5.07
—

Aa
A
Aa
A
A
Aaa
Baa
Aa

Rights offering.
.Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities* G.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.TQ.-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.
• ':

•

'

\/'




-

;

"

'

'
•

••- .
••

•'

•

• •'
'

1
10

-

.

'

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
. •
> ,
(continued)
As o f February 5 , 1 9 7 1 1

ISSUER

TYPE

Corporates
Debs.
Reliance Elec. Co.
Debs.
American Tel. & Tel. Co.
1st. Mtg.
Central Pwr. & Lt. Co.
Bds.
Indiana & Michigan
Debs.
M . Lowenstein Inc.
1st. Mtg.
Georgia Pwr. Co.
Debs.
Wisconsin Tel. Co.
Bds.
Houston Lighting & Pwr. Co.
Debs.
*Dana Corp.
Jersey Central Pwr. & Lt. Co. Bds.
U. S. Plywood-Champion Paper
S. F. debs.
Inc.
Bds.
Northern States Pwr. Co.
Debs.
Texas Eastern Trans Corp.
South Carolina Elec. & Gas Cc Bds.
1st. Mtg.
Gen'1 Tel. Co. Florida
Debs.
Hart Schaffner & Marx
McCulloh Properties Credit
Debs.
Corp.
Notes
Microdot Inc.
Bds.
Beneficial Corp.
Bds.
Beneficial Corp.
Con debs.
Occidental Petroleum Corp.
Notes
Monumental Corp.
1st. Mtg.
Alabama Gas Co.
Maine Yankee Atomic Pwr. Co. Bds.
S. F. debs.
* Harsco Corp.
Debs.
Columbia Gas System Inc.
1st. Mtg.
Duquense Lt. Co.
Debs.
^Pacific Tel. & Tel. Co.
Bds.
Rochester Tel. Co.
Debs.
Swift & Co.
1st. Mtg.
Burlington Northern, Inc.
Conv. debs.
Georgia-Pacific Corp.
1st. Mtg.
Ohio Power Company
*North American Rockwell Corp. S. F. debs.
*Central Tel. & Utility Corp. 1st. Mtg.
Debs.
New England Tel. & Tel. Co.




AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

30.0
500.0
36.0
30.0
50.0
49.5
90.0
49.5
50.0
35.0

February
February
February
February
February
February
February
February
February
February

8
8
9
10
15
16
16
16
17
18

100.0
50.0
50.0
35.0
45.0
35.0

February
February
February
February
February
February

18
23
23
24
25
25

30.0
20.0
50.0
25.0
100.0
20.0
16.0
50.0
30.0
75.0
35.0
200.0
30.0
50.0
60.0
125.0
40.0
100.0
20.0
200.0

February
February
February
February
February
February
February
March
March
March
March
March
March
March
March
March
March
March
March
May

2
4
4
8
9
11

22

25

11

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)'
As of February 5 ,

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

"

1971

APPROXIMATE DATE
OF OFFERING

State and Local
Detroit, Michigan
Tennessee
Vermont, State of
New York, State of
Dallas-Ft. Worth Airport, Tex.
San Antonio, Tex.
Los Angeles, Co. Fid. Ctr. Dist.
California
*Prince Georges Co., Md.
Newark, N . J .
St. Louis, Missouri
Calif. State Colleges
Louisiana, State of
Pittsburg Stadium Auth., Pa.
Virginia Pub. Sch. Auth.
Los Angeles Harbor Dept., Cal.
Texas Wtr. Development Bd.
New York State House Finance
Agency
Ohio, State of
San Bernardino, Calif. Redevp.
Agency
Roanoke, Va.
Broward Co. S/D, Fla.
Dallas, City of
San Antonio, Tex.
Buffalo, N. Y.
Baltimore, Md.

*
1
2

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

20.0
66.0
25.0
96.0
65.0
10.0

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

9
9
10
10
10
11

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

24.0
26.2
18.8
10.0
13.7
50.0
35.0
25.0
16.0
25.0

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

16
17
17
17
17
18
18
18
24
24

G.O.

103.8
75.0

Feb.
Feb.

24
25

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

13.5
10.0
18.6
27.0
13.0
22.1
35.2

Feb.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.

2
3
3
4
9
16

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

STOCK PRICES 1
DATE

NYSE 3
INDEX
61.27(11/29
48.66(3/5)

1968 - High
Low

D.J. - IND.

AMEX

4

i

|

12

NYSE

AMEX

i

f

985.21(12/13)
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)

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

8.0(1/31?
3.6(11/2 ])

1969 - High ,
Low

50.32(5/14)
49.31(7/29)

968.85(5/14)
769.93(12/17)

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

1970 - High
Low

52.36(1/5)
$7.69(5/26)

842.00(12/29)
631.16(5/26)

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

18.5(22/4)
7.8(8/14)

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

1971 - Jan.

Feb.

1
8
15
22
29

50.23
50.46
51.16
52.11
52.64

838.92
837.01
845.70
861.31
868.50

22.75
23.10
23.52
23.93
24.32

15.6
14.0
17.4
18.1
20.2

4.4
3.6
4.3
4.7
5.3

?
}

5

53.36

876.57

24.67

21.1

6.9

;

1.

Figures other than highs and lows are Fridays only,
for the year and are not necessarily for Fridays.

2.

NYSE 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""aiid 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;
Hours/
Days/
Hours/
Through:
Day
From
Week
Week
August 8, 1967
August 20, 1967
20
5
4
20
5
January 22, 1968
March 1, 1968
4
22
December 31, 1968
5-1/2
June 30, 1968
4
20
July 3, 1969
5
January 3, 1969
4
22-1/2
December 31, 1969 . 4-1/2
5
July 7, 1969
January 2, 1970
May 1, 1970
5
25
5

3.

12/31/65= 50

4.

Average dollar value of shares listed.




Highs and lows are

T

13
TABLE 9: Security Credit

END OF PERIOE

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:
1969 - Dec.

4,970

2,580

7,550

7,445

2,803

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

4,680
4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010
4,010
4,030

2,430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330

7,110
6,940
6,890
6,690
6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360

6,683
6,562
6,353
5,985
5,433
5,281
(4)
(4)
(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
2,197
2,286

-

4,642
4,057
4,099
3,9X2
3,724
3,211
3,272
(4)
(4)
(4)
(4)
(4)
(4)

Change in
Outstanding:
1969 - Dec.

-100

60

-40

334

190

144

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

-290
-110
- 50
-160
200
- 10
-350
- 10
110
90
2
18

-150
- 40

-440
-170
- 50
-200
240
-300
-60
- 20
140
30
52
28

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

-177
-163
- 22
-193
- 26
-213
171
97
153
- 73
34
89

-585
42
-187
-188
-513
-61
WW

——

- 40
- 40
——
——

10
30
- 60
50
10

—
—
—
——
—

—" •*"
--

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 securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.




''1

J
TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
1
($ millions)

DATE

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

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY2
NET
GROWTH
1
FLOW
RATE

'
TOTAL
DEPOSITS
|
NET
NEW
ANNUAL '
NET
GROWTH
MONEY 2
1
RATE
FLOW

Not Seasonally Ad justed
1968
1969
1970 b/

4,203
2,549
4,199

1969- Oct.
Nov.
Dec.

-138
257
571

1970 - Oct.
Nov.
Dec 2./

276
497
900

1970 - July
Aug.
Sept.
Oct.
Nov.
Dec. E./

497
268
437
444
531
557

1
2
3

7.0
4.0
6.3
-s mm

—

—-

8.8
> 4.7
7.6
7.7
9.1
9.5

1,143
-763
860

7,432
4,019
11,048

266
179
-237

-406
226
1,069

138
388
300

1,130
1,098
2,696

——
—--

•

—
-—

6.3
3.4
7.5

2,738
-1,003
5,288

6.0
3.1
8.2

11,635
6,568
15,247

-430
207
-387

-544
483
1,640

1,064
1,044
1,154

1,406
1,595
3,596

——

2,273
1,053
1,830
1,843
1,623
2,278

13.3
6.1
10.5
10.5
9.2
12.8

Seasonally Adjusted
15.5
1,776
6.8
785
1,393
11.9
1,399
11.9
9.2
1,092
14.3
1,721

---

-—
—
--

——

a

-- —

3,881
-1,766
6,148
-696
386
-624
1,202
1,432
1,454

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only] which represent 96% of industry total resources.
Regular deposits at,mutual savings banks exclude items such as Christmas club and certain
• escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




----

--

T A B L E 11: Mortgage Commitments at Selected Thrift Institutions

DATE

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

l

TOTAL

8.4
8.2
7.9
7.6
7.8
8.0
8.2
8.6
r8.8
9.1
9.3
9.4
9.8

1

OUTSTANDING COMMITMENTS
|
NET CHANGE
ALL
ALL
MUTUAL
1
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
BANKS
LOAN ^
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, S< lasonally Adjusted) 1/
5.8

2.6

5.6
5.4
5.2
5.4
5.8
6.1
6.5
6.8
r7.1
7.4
7.5
7.6

2.6
2.5
2.5
2.4
2.2
2.1
2.0
2.0
1.9
1.9
1.9
1.9

\

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

1

-.25

-.12

-.13

-.17
-.30
-.26
.13
.24
.22
.38
.24
.24
.32
.34
.55

-.22
-.23
-.21
.26
.38
.30
.42
.33
.39
.39
.33
.32

.04
-.07
-.05 •
-.13
\
\ -'14
-.09
r-.04
r-.08
-.10
-.06
-.07
-.22

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 m i n o r 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
of rounding.




.

16

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

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 - Nov.
Dec.

1,636
2,120

1,042
1,475

300
200

151
325

450
533

141
417

594
645

1970 - Nov.
Dec.

2,184
n.a.

1,932
n.a.

300
200

183
n.a.

1,322
1,664

1,913

1,315

314

279

1,469
1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
2,186
n.a.

919
1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754
1,958
n.a.

231
199
140
76
65
81
165
168
228
195
224
312

25
143
186
188
155
201
142
175
245
170
176
n.a.

1966
1967
1968
1969

127
n.a.

252
n.a.

Seasonally Adjusted
- Dec.
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

571
452
482
322
385
631
777
1,055
983
1,103
1,189
1,427
1,702

151

598

211
220
161
195
199
222
213
83
151
200
131
n.a.

550
498
521
507
435
468
508
408
364
320
228
n.a.

-

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 thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 86 per cent of the net increase estimated for all holders in 1967.




17

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

5.5
4.1

8.2
6.0

2.2
1.8

MULTI-AND
COMMERCIAL

COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

1967 - I

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10.5
15.3
16.0

3.3
3.4
3.9
3.8

3.9
5.0
4.9
4.8

7.3
8.4
8.8
8.4

1.8
1.8
2.5
2.8

1968 - I p
I*
IIIp
IVp

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8
1.8

1969 - I p
H p
IIIp
IV p

31.3
28.9
26.5
30.4

29.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
10.0
10.7

2.2
2.2
1.8
1.4

1970 - I p
H>
IIIp
IVp

20.3
23.4
26.9

13.8
16.9
20.9

8.8
11.5
15.0

5.0
5.4
6.0

5.0
5.0
4.2

9.8
9.8
10.1

1.5
1.5
1.7

It

III
IV

I 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 Agri-

,

farm mortgage debt by type of property, where not available, and i n t e r p o l a t i o n
and extrapolations, where required, estimated mainly by Federal Reserve.
•

maini

^

3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly " A u c t i o n " Results

WEEK
I ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARN
TOTAL
90TOTAL
6OFFERED
MON/TH & OVER
DAY

IMPLICIT YIELD 2 (per cent)
90DAY

6MONTH

1-YEAR
& OVER

Aug.

10
24

441.3
575.0

180.2
215.1

41.4
48.8

91.0
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
117.0
40.1. 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
149.7

1
y 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
14
28

166.5
165.5
60.6

127.8
124.7
48.1

54.7
42.1
17.2

60.9
72.1
28.9

12.2
10.5
3.0

8.56
8.51
8.41

8.54
8.43
8.36

8.57
8.47
8.40

Jan.

25

44.6

35.5

9. 9

25.6

7.63

7.96

1

--

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 "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 38 basis points fee paid by investors
to servicers.
Prior to August 10, 1970 the servicing fee was 50 basis points.




19

TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY .ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA I VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

,1969 - Dec.

1,402

776

626

84.1

23.2

4.2

57.9

1,239

"970 - Jan.

577
1,059
725
1,306
1.392
708
1,224
697
1,242
728
835
1.393
827
1,603
838
1,425
881
1,509
1,583
890.
930
1,688
1,987 1,204

482
581
684
527
514
558
776
587
627
693
758
783

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
117.6

16.5
17.5

3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.6
5.3
5.8
5.5
5.7

46.5
52.9
84.7
90.6

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,371
1,521
1,489
1,737

J
1
1
I
|
!

Feb.
Mar.
Apr.
May
June
July
Aug. :
Sept.:
Oct. i
Nov. X
Dec.p
1

25.2
32.4
37.1
40.7
43.4
34.1
34.3
40.4
33.7
63.2

80.8
89.4
92.1
87.7
91.3
94,7
87.2
48.7

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. 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 per
mits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




20

TABLE 16: Mortgage and Bond Yields

FHA
|

MORTGAGES

,

DATE
25-YEAR 30-YEAR
i

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON C0NV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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

.23
.25
.30
.11
-.12
.12
-.27
.40
.13

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91

1.69
.77
1.16
1.28
.27
1.20
.26
1.08
-.13

1970 - Aug.
Sept.
Oct.
Nov.
Dec.

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

9.07
9.01
8.97
8.90
8.40

8.60
8.50
8.50
8.45
8.30

-.47
-.51
-.47
-.45
-.10

8.48
8.42
8.63
8.34
7.80

.59
.59
.34
.56
.60

1

2

3

4

Neither mortgage nor bond yields Include allowance for servicing costs which are
-much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
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 a n d — b e g i n n i n g 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 officecities . 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.




21

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

1.06

8.25

8.16

1.08

8.23
8.29
8.23

1.09

8.34
8.41
8.47
8.40
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.37

8.07

8.28
8.31
8.32
8.358.31
8.33

8.26
8.20

1
.

1.11
1.02
0.98
0.99

1.01
0.98
1.03
1.05
0.99
1.07

25.4

25.0

24.2
25.0
24.8
25.3
25.1
25.1
24.8

25.2
25.1
25.3
25.9

LOAN/
PRICE
RATIO
(PER
CENT)

LOAN
AMT.

($000)
4

1

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

($000
4

71.9

25.0

8.08

0.93

8.24

22.9

70.6

20.8

69.3

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.7

8.13
8.23

0.94

22.4
22.4

8.26
8.20
8.18

70.3
70.2
70.4
70.4
70.3
71.5
71.5
71.7
71.7
71.5
71.5
71.9

20.5
20.4

0.98
0.90
0.94
0.98
0.95
0.89

8.29
8.41
8.43
8.35
8.34
8.36
8.37
8.41
8.42
8.35
8.32

J 1.8
71.1
71.1
71.7
71.3
71.5
71.6
72.7
72.4
72.1
74.0

8.19

8.21
8.25
8.27

8.20
8.18
8.12

1.02

0.88
0.88
0.85
0.84

8.26

22.6
22.8
22.8
23.0
23.1
23.1

22.8
22.8
22.8
23.3

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.

4

Derived by FRB.




LOAN
AMT.

20.6
20.4

21.1
21.5
21.7
21.4

21.0
20.5

21.1
21.8


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102