Full text of H.16 Capital Market Developments : July 13, 1970

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

DECONTROLLED' AFTER SIX M O M S

L.5.8 Confidentiali(F.R.)

^

Y

7

/

7
July

CAPITAL
MARKET
DEVELOPMENTS

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




13,

1970

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

SYMBOLS:
e

Estimate

p

Preliminary

r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

L970 - J u n e

July
*

5
12
19
26'
3
10
17

WEEK ENDING:

L970 - J u n e

July

YIELDS
MOODY'S
SEASONED
.NEW ISSUE 1
Aaa

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

9.05
9.23
9.30
, 9.14

8.30
8.42
8.55
8.60

261
383
520
560

9.02
8.70
n.a.

8.60
8.55
n.a.

360.

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

5
12
19
26

6.75
6.85
6.95
6,10

3
10
17

6.65
6.50
n.a.

»

100
94
n.a.

395
600e

1,069
1,285
869
794
88*

580
n.a.

MUNICIPAL BOND MARKET
VOLUME2
,
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS

6.92
7.03
7.03
6.86

91
302
397
224

6.79

119
179
420e

6.59

84
89
92
' 92

*

69
72
79
74

608
754
398
509

54
67
n.a.

845
n.a.

634

1 D e r i v e d by a d j u s t i n g t o a Aaa b a s i s , new i s s u e s of p u b l i c l y - o f f e r e d c o r p o r a t e bonds
w i t h c a l l p r o t e c t i o n , r a t e d A, Aa, or Aaa by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l
and c o n v e r t i b l e i s s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n c o m p a n i e s , and
bonds g u a r a n t e e d by t h e F e d e r a l Government.)
2 M i l l i o n s of d o l l a r s u n l e s s o t h e r w i s e i n d i c a t e d .
Note:

Sec f o o t n o t e s t o T a b l e 3




TABLE 2: Details on Inventories

AMOUNT
(MIL. $)

DATE
OFFERED
7/8
7/8

OFFERED

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

16.0

DATE
| RELEXSED

9-1/8
8-7/8

B r o o k l y n Union Gas
•Gulf Pwr

30.0

AMOUNT"

ISSUER

COUPON

8.90
8.70

A
A a.

5 yrs
5 yrs

ESTIMATED PROPORTION SOLD
50%
50%

ORIGINAL INCREASE RATING' AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED
YIELD

::ONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - J u n e
July

12
19
26
3
10

N.C. - No c a l l p r o t e c t i o n .

399
408
366
370
326

92
145
94
129
73

CORPORATES
IN SYNDICATE
42
51
46
0
23

Digitized
for
1
A l lFRASER
f i g u r e s i n m i l l i o n s of d o l l a r s . B l u e L i s t i s d a i l y a v e r a g e f o r week ended F r i d a y , e x c e p t f o r l a t e s t week
http://fraser.stlouisfed.org/
which i s d a i l y a v e r a g e of t h r e e days ended Wednesday. A l l o t h e r f i g u r e s a r e .as of F r i d a y .
Federal Reserve Bank of St. Louis

BONDS IN SYNDICATE
Friday figures

1

Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100
ll.Ht.llH .11
MUNICIPAL BONDS IN SYNDICATE
300

200
100

DEC.

SEPT.

'68




MAR.

JUN.

1969

SEPT.

DEC.

MAR.

JUN.

1970

SEPT.

DEC.

TAEfcE 3: High Grade Bond Y i e l d s

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE 1
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1968 - High
Low

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

6.55 (1/27)
5.95 (9/13)

5.90 (1/20)
5.18(8/9)
'

4.85 (1/26)
4.07 (8/8)

1969 - High
Low

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

7.84 (12/26)
6.55 (1/3)

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

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

1970 - High
Low

9.30 (6/19)
8.20 (2/27)

8.60 (7/3)
7.79 (3/6)

7.55 (5/29)
6.60 (3/6)

7.12 (5/29)
5.95 (3/12)

9.05
9.23
9.30
9.14
9.02
8 . 7 0 w'

8.30
8.42
8.55
8.60
8.60
8.55

7.33
7.43
7.41
7.27
7.10
6.91

6.92
7.03
7.03
6.86
6.79
6.59

1970 - J u n e

July

5
12
19
26
3
10

1

<

New c o r p o r a t e i s s u e s , w i t h c a l l p r o t e c t i o n , a d j u s t e d ( a s d e s c r i b e d i n
f o o t n o t e 1 of T a b l e 1) t o a Aaa b a s i s .
2
Weekly a v e r a g e of d a i l y f i g u r e s . Average t e r m of bonds i n c l u d e d i s
22-24 y e a r s .
3
Weekly a v e r a g e of d a i l y f i g u r e s .
4
T h u r s d a y f i g u r e s . The a v e r a g e r a t i n g of t h e 20 bonds used i n t h i s i n d e x
' f a l l s midway-between t h e f o u r t o p g r o u p s a s c l a s s i f i e d by Moody's I n vestors Service.
N o t e - - H i g h s and lows a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s
for d i f f e r e n t series.




HIGH GRADE BOND YIELDS

NEW CORPORATE A a a

MOODY'S
CORPORATE A a a

U S . GOVT 2 0 YR
C O N S T A N T MATURITIES
B O N D BUYER MUNICIPAL

1966




1967

1968

1969

1970

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and P l a c e m e n t s
(In millions of dollars)

GROSS PROCEEDS
STATE AND LOCAL2

CORPORATE '

PERIOD
1970

1969

1968

1970

1969

|

1968

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

1
1

1 ,338
1 ,212
1 ,499

1 ,262
987
538

1,178 "
1,158 L
1,404 •

April
May
June

3,000e
3,600e
3,225e

2,748
2,076
2,530

1,428
1,866
2,411

j
1
:

1 ,630
991
l ,075e

1 ,801
1 ,110
737

1,318 '
1,143
1 , 3 9 5 :*

July
August
September

2,900e

2,478
1,427
2,427

2,143
1,432
1,557

l ; ,100e

1 ,097
808
559

1,469 :
1,699
1,444 I

. 1,933
2,375
2,532

2,129
1,767
2,054

1 ,280
886
816

2,230 J
1,021 |
1,115 |

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

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

2 •,787
3. ,648
2 !,464
2 3,982

3 ; 840 :
3,856 ,
4,612
4,366 :

6, ,435
8 , 899
1 1 , 881

7,956 !
12,008
16,574 |

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three q u a r t e r s
Year

--

7,977e
9,825e

13,572
19,904
26,744

10,882
16,015}
21,965

E x c l u d i n g f i n a n c e companies
1st
• 2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year
1
2
3

Note:

6,170
7,037

4, 049e/
3, 696ej

3

1
i
I

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

...
-

S e c u r i t i e s and Exchange Commission e s t i m a t e s of g r o s s p r o c e e d s .
I n v e s t m e n t Bankers A s s o c i a t i o n of America e s t i m a t e s _ o f p r i n c i p a l a m o u n t s .
T o t a l g r o s s p r o c e e d s e x c l u d i n g , o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.
'
AT&T r i g h t s o f f e r i n g , i n c l u d e d ^ i n May e s t i m a t e .




i
>
i

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

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
PLACED
STOCK FOREIGN | CONVERTIBLE
OFFERED
2,657
1,540
2,023
215
1,355
1,673
227
3,411
1,126
2,268
3,186
1,347
1,797
289
750
1,053
3,479
2,307
115
809

-

I
II
III
IV

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

1970 -

I
lie

7,977
9,825

4,577
5,125

1,235
l,300e

2,147
l,600e

1969 -

May
June
. July
Aug.
Sept.
Oct.
Nov.
Dec.

2,076
2,530
2,478
1,426
2,427
1,933
2,375
2,532

871
1,272
1,279
685
1,222
969
1,164
1,346

510
514
609
259
479
313
226
514

694
744
589
482
726
651
984
672

1970 -

Jan.
Feb.
Mar.
, Aprve
X May#
\ June*

2,636
1,802
3,539
3,000
3,600
3,225

1,595
1,068
1,914
2,000
3,000
1,925

516
266
471
400
400
500

525
468
1,154
600
200
800

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

407
1,773
1,862
1,314

1,346
1,878
1,544
1,967

473
432
684
598

2,993
3,266
2,243
2,961

OTHER
ISSUERS1

222
n. 6.

922
425

2,584
2,800

2,085
2,460

766
2,175

2,543
2,390

28
137
132
122
35
59
8
48

463
233
214
167
369
105
303
401

569
691
875
362
625
260
453
601

392
702
493
507
544
745
622
600

197
191
286
126
272
120
201
277

915
946
826
433
984
808
1,099
1,054

61
33
128
n. a.
n. a.
n, a.

387
249
286
330
200
75

till
357
1,416
800
900
1,100

639
540
906
960
450
M,050

234
226
306
25
1,800
350

952
680
911
1,215
450
725

O t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , . r e a l e s t a t e
and f i n a n c e , and c o m m e r c i a l and o t h e r .
S o u r c e : S e c u r i t i e s and Exchange Commission. Q u a r t e r l y s u p p l e m e n t s a r e a v a i l able .




COMMUNICATIONS

MFG.

s

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

ISSUER

)O^AR
DOLLARS)

MATURITY

Corporates
Union Tank Car
D e t r o i t Edison
D e t r o i t Edison
B e n e f i c i a l Corp
Washington Gas L i g h t Co.
G u l f Power Co.
Duquesne L i g h t Co.
B r o o k l y n Union Gas Co.
C o n s o l i d a t e d N a t u r a l Gas Co.
J . C . Penney, I n c . „
Avco D e l t a C o r p .




Equip T r s t .
Ctfs.
Com. S t k .
Gen. & R e f .
Mtg.
Debs.
1 s t Mtg.
1 s t Mtg.
1 s t Mtg. 1
1 s t Mtg.
Debs.
S . F . Debs.
Conv. D e b s .

AUIPON
UA'I OH
NI. i l .Tl'K
I ST COST

25.0
58.0

1990

9.88

75.0
75.0
20.0
16.0
40.0
30.0
40.0
150.0
50.0

2000
1995-1978
1975
2000
1976
1995
1995
1995
1990

9.15
9.38 & 8.25
8.75

8.88

8.25
9.13
9.00

8.88

11.00

OFFERKATIM
Y1 l-Ll)

9.90
9.15
9.38 & 8.25
8.63
8.70:
8.25
8.90
8.90
8.72
11.00

T A B L E b: Large Long-term Public Security I s s u e s for New Capital (continm d)
(Other than U.S. T r e a s u r y ) '

!
!

AMOUNT
(MILLIONS

ISSUER

OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFURi;.(

MOODY'S
RATING

YILLD

S t a t e and L o c a l
M a r y l a n d , S t a t e of
N a s s a u C o . , N. Y.
C o a s t a l I n d u s t r i a l W t r . Auth,
Texas
Omaha, N e b r a s k a

P.O.
0.

46.8
A3.6^

S . F . Rev.
0.

16.0
10.2

Bonds
407.0
U.S. G o v ' t .
I n s . Bonds 5 1 . 0

6.03

5.00-6.25
4.75-6.50

Aaa
A

1989
1980

7.08
5.95

7.08
4.60-6.50

A-l
Aaa

1973

7.95

7.95

1996-97

8.75

8.75

1973-85
1971-99

Other
F e d e r a l Land Banks
P a c i f i c Far East Line, Inc.

Rights o f f e r i n g .
I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ;
S t a t e and l o c a l s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
I n c a s e of S t a t e and l o c a l government s e c u r i t i e s , C O . d e n o t e s g e n e r a l o b l i g a t i o n ;
R e v . - U t . , r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by income from p u b l i c u t i l i t i e s - ; . ;
R e v . - Q . - l i t . , r e v e n u e bonds s e c u r e d o n l y by income from q u a s i " - u t i I i t i e s ; R e v . - S . ' l ' . ,
r e v e n u e bonds s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - R e n t r e v e n u e
bonds s e c u r e d s o l e l y by l e a s e p a y m e n t s .
v
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s arid n o n - q u a r a n t e e d i s s u e s by F e d e r a l A g e n c i e s .




Aaa

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. T r e a s u r y ) 1
(continued)

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS).

APPROXIMATE DATE
OF OFFERING

Corporates
American A i r l i n e s , I n c .

Equip. Trst.
Ctfs.
Diamond S t a t e s T e l e p h o n e Co. D e b s .
Bank America R e a l t y I n v e s t o r Conv. Sub. D e b s .
Bank America R e a l t y I n v e s t o r Debs.
Debs.
Beck I n d u s t r i e s
P a c i f i c Power & L i g h t
1 s t Mtg.
1 s t Mtg.
F l o r i d a Power & L i g h t Co.
Notes
McDonnell Douglas C o r p .
Union O i l Co. of C a l .
Debs.
Debs.
Ryder System I n c .
*
1 s t Mtg.
Pugefc Sound. Pwr. & L t . Co.
I n l a n d S t e e l Co.
1 s t Mtg.
Debs.
B e l l T e l e p h o n e of P e n n a .
Debs.
A.O. Smith C o r p .
Debs.
T r a v e l e r s Corp.
Debs.
N o r t h e r n N a t u r a l Gas Co.
Debs.
. Amerace Esna C o r p . .
Debs.
• C o n t i n e n t a l Can Go.
K a n s a s - N e b r a s k a N a t u r a l Gas
jCompany
Debs.
•Philadelphia Electric
Cum. P r e f .
Stock
Debs.
P i o n e e r N a t u r a l Gas Co.
Duke Power Co.
Pfd. Stk.
Debs.
*E1 P a s o N a t u r a l Gas Co.
M i s s i s s i p p i Power & L i g h t Co, 1 s t Mtg.
•Tenneco C o r p .
Debs.
G 6 n ' l T e l e p h o n e Co. of Mich. Bonds
1 s t Mtg.
• C a r o l i n a Pwr. & L i g h t Co.
•Northern Indiana Public
S e r v i c e Co.
1 s t Mtg.
Notes
Monogram I n d u s t r i e s
B-W Acceptance C o r p . /
S . F . Debs.
•Duke Power Co.
1 s t & Refunding
Mtg.
7
Debs.
N a t i o n a l F u e l Gas Co.
• N o r t h e r n I l l i n o i s Gas Co.
1 s t Mtg.
Southwestern B e l l Telephone
Company
Debs.
• W i s c o n s i n Pub. S e r v i c e C o r p . Bonds
W e s t e r n E l e c t r i c Co.
Debs.




July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July

78.5
15.0
45.0
90.0
15.0
25.0
60.0
100.0,
100.0
35.0
30.0
100.0
100.0
35.0
100.0
40.0
25.0
60,0
15.0

'

13
13
14
14
14
14
15
15
15
16
16
16
21
21
21
21
21
22

J u l y 22

60.0
20.0
60.0
50.0
17.5
75.0
17.0
50.0

July
July
July
July
July
July
July
July

35.0
25.0
35.0

July
July
July

22
22
28
28
28
28
29
30

100.0
21.0
35.0

Aug. 5
Aug. 10
Aug. 11

150.0
45.0
150.0

Aug. 12
Aug. 18
Sept. 29

—

T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. T r e a s u r y ) !

. ...
ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

S t a t e and L o c a l
G.O.
* D a l l a s , T e x a s ISD
G.O.
New J e r s e y , S t a t e of
Rev.
* H a w a i i , S t a t e of
G.O.
Oakland C o . , Mich.
G.O#
New York C i t y
*Birmingham-Jefferson Civic Ctr.
G.O.
Auth., Ala.
G.O.
T e x a s , S t a t e of
G.O.
Oklahoma C i t y , O k l a .
G.O.
*New York* S t a t e
G.O.
P h i l a d e l p h i a , Pa.
G.O.
North Miami, F l a .
Rev.
Ohio P u b l i c F a c i l i t i e s Comm.
Rev.
*New York S t a t e D o r m i t o r y Auth.
G.O*
P e n n a . , S t a t e of
G.O.
* P o r t of S e a t t l e , Wash.
Rev.
*Long B e a c h , C a l i f o r n i a
Rev.
D e t r o i t , Mich.
G.O.
Kentucky
M e c k l e n b u r g C o . , N. C.
G.O.
San F r a n c i s c o Bay Area T r a n s i t
Rev. Bonds
Dist.
GeO.
O r e g o n , S t a t e of
G.O.
Los A n g e l e s DWAPS
G.O.
* 0 h i o , S t a t e of
Other
Debs.
Ontario (Province of)
Bonds
F e d e r a l Home Loan Banks
D
ebs.
Nova S c o t i a ( P r o v i n c e o f )
*
1
2

15.0
75.0
25.0
15.0
170.2

July
July
July
July
July

13
14
14
14
15

23.7
15.0
21.3
60.0
48.5
12.0
65.0
23.8
75.0
.28.0
30.0
46.0
10.0
16.9

July
July
July
July
July
July
July
July
July
July
July
July
Aug.
Aug.

15
20^_
21
21
21
21
23
23
28
28
29

50.0
55.0
39.0
100.0

Aug.
Aug.
Aug.
Sept.

5
18
26
3

75.0
300.0
25.0

July
July
July

14
15
15

1
4

z

•<

Included in t a b l e f o r f i r s t time.
I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l
Government i s s u e s of $10 m i l l i o n and o v e r .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l A g e n c i e s .




TABLE 8: Stock P r i c e s and Volume

STOCK PRICES 1
DATE

"

•

S&P, .
500 3

TRADING VOLUME 2
4

D . J . -• IND.

AMEX

NYSE

AMEX

1968 - High
Low

L08.37 (11/29) 9 8 5 . 2 1 ( 1 2 / 1 3 )
87.72(3/5)
825.13 ( 3 / 2 1 )

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

82.61(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
Low

106.16(5/14)
89.20 ( 7/17)

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

82.6(10/17)
32.8(4/4)

38.4(5/9)
12.9(4/4)

1970 - High ,
Low

93.46(1/5) 811.31(1/5)
69.29(5/26) 631.16(5/26)

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

80.7(5/26)
35.1(7/3)

28.4(1/2)
8.3(7/3)

1970 - J u n e

5
12
19
26

76.17
74.21
77.0573.47

695.03
684.14
720.43
687.84

20.99
20.72
21.00
20.22

71.9
39.0
48.0
49.5

27.4
10.3
13.0
15.0

3
10

72.92
74.57

689.14
700.10

19.95
19.93

35.1
53.8

8.3
12.1

July

968.85(5/14)
769 . 9 3 ( 1 2 / 1 7 )

^

—

1.

F i g u r e s o t h e r t h a n h i g h s and lows a r e F r i d a y s o n l y .
f o r t h e y e a r and a r e n o t n e c e s s a r i l y f o r F r i d a y s .

2.

1941-43 = 1 0 .

3.

Average d o l l a r v a l u e of s h a r e s l i s t e d .

4.

NYSE i s t h e New York S t o c k Exchange; AMEX i s t h e American S t o c k E x c h a n g e .
T o t a l number of s h a r e s t r a d e d p e r week ( m i l l i o n s of s h a r e s ) . T r a d i n g i s
n o r m a l l y c o n d u c t e d f o r 5 - 1 / 2 h o u r s p e r day and 5 d a y s p e r week, o r 2 7 - 1 / 2
h o u r s p e r week. I n r e c e n t y e a r s , h o w e v e r , a b b r e v i a t e d t r a d i n g t o t h e
e x t e n t , and o v e r . t h e t i m e p e r i o d s , shown b e l o w :

From:

Through:

August 8 , 1967
J a n u a r y 2 2 , 1968
J u n e 3 0 , 1968
J a n u a r y 3 , 1969
J u l y 7 , 1969
J a n u a r y 2 , 1970

August 2 0 , 1967
March 1 , 1968
December 3 1 , 1968
J u l y . 3 , 1969
December 3 1 , 1969
May 1 , 1970




Hours/
Day
4
4
5-1/2
4
4-1/2
5

Highs and lows a r e

Days/
Week
5
5
4
5
5
' 5 .

Hours/^
Week
20
20
22
20
22-1/2
x
>25

15

STOCK PRICES AND TRADING VOLUME
AM EX

Weekly

1280 128

STOCK PRICES

1200 120

AMEX PRICE LEVEL INDEX

1120 112
1040 104

960

96

880

88

800

80

720

72

Millions of shares
AMEX TRADING VOLUME (TOTAL FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




1968

1969

1970

T A B L E 9: Security Credit

END OF PERIOE
Outstanding:
1 9 6 9 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970 - Jan.

Feb.
Mar.
Apr.r
MayP
Change "
Outstanding:
1 9 6 9 - May

%

June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1970 - Jan.

Feb.
Mar.
Apr.
MayP

1
2
3

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS * | BANKS2 | TOTAL

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

5,670
5,340
5,170
5,000
4,940
5,040
5,070
4,970

2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,580

8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,550

8,474
8#14
7,515
7,019
7,039
7,243
7,111
7,445

3,084
3,085
2,783
2,577
2,579
2,753
2,613
2,803

4,680
4,570
4,520
4,360
4,150

2,430
2,370
2,370
2,330
2,290

7,110
6,940
6,890
6,690
6,440

6,683
6,562
6,353
5,985
5,433

2,626
2,563
2,441
2,248
2,222

100
-330
-170
-170
- 60
100
30
-100

10
-30
-40
-30
-50
-50
-50
60

110
-360
-210
-200
-110
50
- 2 0
- 40

430
-260
-699
-496
20
204
-132
334

7
1
-302
-206
2
174
-140
190

423
-261
-397
-290
18
30
8
144

-290
-110
- 50
-160
-210

-150
-40

-440
-170
- 50
.-200
-250

-762
-121
-209
- 69
-521

-177
-163
- 22
-193
- 26

-585
42
-187
-188
-513

—— .

-40
-40

5,390
5,129
4,732
4,44V
4,460
4,490
4,498
4,642

:

,

'

4,057
4,099
3,912
3,724
3,211

Margin d e b t , a s r e p o r t e d by t h e New York S t o c k Exchange. A l t h o u g h margin d e b t
u n t i l March 1968 i n c l u d e d l o a n s s e c u r e d by U . S . g o v e r n m e n t s , t h e amount of such
l o a n s i n c l u d e d i s t h o u g h t t o have been s m a l l .
"Bank l o a n s t o o t h e r s t h a n b r o k e r s a n d . d e a l e r s f o r p u r c h a s i n g or c a r r y i n g s e c u r i t i e s o t h e r t h a n U.S. g o v e r n m e n t s . "
The d i f f e r e n c e between c u s t o m e r s ' n e t d e b i t b a l a n c e s and c u s t o m e r s ' n u t - T r e e c r e d i t b a l a n c e s , t h i s f i g u r e r e p r e s e n t s t h e n e t c r e d i t e x t e n d e d by b r o k e r s and
dealers to the nonfinancial public.
NOTE: With t h e e x c e p t i o n of bank l o a n d a t a , f i g u r e s a r e s u p p l i e d by tho New York
S t o c k Exchange and a r e end of month d a t a . Bank l o a n s a r e f o r weekly r e p o r t i n g
l a r g e commercial b a n k s . B r o k e r d a t a i n c l u d e s l o a n s f o r r e g u l a t e d s e c u r i t i e s ; bank
d a t a i n c l u d e s l o a n s f o r t h e p u r p o s e of p u r c h a s i n g o r c a r r y i n g any s e c u r i t y , w h e t h e r
r e g u l a t e d or n o t .




T A B L E 10: Savings F l o w s at Nonbank Depositary Intermediaries

($ m i l l i o n s )

SAVINGS (& LOAN ASSOCIATIONS
* MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NET
SHARE CAPITAL
NEW
ANNUAL
NEW
ANNUAL
2
MONEY
GROWTH
MONEY2
NET
NET
GROWTH
1
FLOW
FLOW
RATE
RATE T

DATE

1967
1968
1969

/
/

5,082
4,208
2,551

Not S e a s o n a l l y A d j u s t e d
10,649
9.4
6,129
" 6.0
7,399
2,738
4,020
3.1
-1,003

9.3
7.1
4.0

2,376
1,143
- 747
81
- 325
227

1,370
- 516
642

——

- 88
- 136
224

1,655
207
754

——

1969 - Mar.
Apr.
May

642
-197
307

——

1970 - M a r .
Apr.
May p./

510
- 6
1
326

——

—
- -

—
—

1970 - J a n .
Feb.
Mar.
Apr.
May P /
1
2
3

229

4.1

-117
298
244
371
360

-2.1
5.4
4.4
6.6
6.4

—

——

—

NET
NEW
MONEY 2
•1

\
15,371
11,607
6,371

9.4
6.3
3.4

479
- 543
6oi

2,012
-- 713
949

. ——

537
188
707

2,165
201
1,080

——

8,505
3,881
-1,750
560
868
828
-

- -»—
—- -

—

'

4 7

- 754
247
1,021
973
638

0.4
-6.7
2.2
9.1
8.6
5.6

—

- ——
—

276

1.6

- 871
545
1,265
1,344
998

-5.2
3.3
7.5
8.0
5.9

Annual growth r a t e f o r m o n t h l y d a t a i s t h e a n n u a l i z e d monthly p e r c e n t a g e i n c r e a s e i n d e p o s i t s .
Net New Money i s new d e p o s i t s n e t of b o t h w i t h d r a w a l s and i n t e r e s t .
Data f o r S&Ls a r e f o r
i n s u r e d a s s o c i a t i o n s o n l y , which r e p r e s e n t 96% of i n d u s t r y t o t a l r e s o u r c e s .
R e g u l a r d e p o s i t s a t m u t u a l s a v i n g s banks e x c l u d e i t e m s such a s C h r i s t m a s c l u b and c e r t a i n
escrow a c c o u n t s , which r e p r e s e n t a v e r y s m a l l p a r t of t o t a l d e p o s i t s .
SOURCE: N a t i o n a l A s s o c i a t i o n of Mutual S a v i n g s Banks and F e d e r a l Home Loan Bank Board.




449
52
931

Seasonally Adlusted

-

1969 - D e c .

- -

TOTAL
DEPOSITS
|
ANNUAL '
NET
GROWTH
RATE 1
FLOW

—— -

19

SAVINGS FLOWS (seasonally adjusted)

Monthly

'

Millions of dollars

2000
1600
1200

TOTAL

800

400

400

1200

800

SAVINGS & LOANS

400

400

800
MUTUAL SAVINGS B A N K S

400

400
1966

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970 - J a n .
Feb.
Mar.
Apr.

1

1

OUTSTANDING COMMITMENTS
|
NET CHANGE
' ALL
ALL
MUTUAL
1
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
TOTAL
BANKS
LOAN
LOAN
r
'
(N.Y. STATE)
ASSOCIATION S
ASSOCIATIONS
( B i l l i o n s of D o l l a r s , S e a s o n a l l y A d j u s t e d ) I f

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4

7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8

3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6

.18
.15
-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25

.12
.14
-.06
-.11
-.22
-.24
-.18
-.23
-.18
-.12

.06
.02
-.05
-.06
-.10
-.12
-.13
-.09
-.06
-.13

8.2
7.9
7.6
7.8

5.6
5.4

2.6
2.5
2.5
2.4 .

-.17
-.30
-.26
.15

-.22

.04
-.07
-.05 "
-.13

5.2

5.4

-.23

-.21
.27

Based on d a t a from F e d e r a l Home Loan Bank Board and S a v i n g s Banks A s s o c i a t i o n s of
New York S t a t e . D a t a f o r s a v i n g s banks and S&L's i n c l u d e a m i n o r amount of nonr e s i d e n t i a l commitments. S&L commitments i n c l u d e l o a n s i n p r o c e s s . Net c h a n g e s
a r e d e r i v e d d i r e c t l y f r o m unrounded o u t s t a n d i n g s l e v e l s a s r e p o r t e d and a f t e r
s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e . S u b t o t a l s may n o t add t o t o t a l s b e c a u s e
of r o u n d i n g .




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

.

Billions of dollars

10
TOTAL

S&L'S

N.Y.-MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

22

«

^

TABLE 12: Net Change in Mortgage Holdings

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
COMMERCIAL
LOAN
COMPANIES
BANKS
BANKS
ASSOC.

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

4,705
4,639
6,677
5,535

1969 - Mar.
Apr.
May

1,922
2,227
2,165.

1,717
2,036
1,980

1970 - Mar.
Apr,
May

1,088 ,
1,500
n. a.

1969 - May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
1970 - J a n .
Feb.
Mar.
Apr.
May

DATE

1

FNMA-GNMA

Not S e a s o n a l l y A d j u s t e d
1966
1967
1968
1969

2,323
1,797
2,508
"4,375

2,720
3,153
2,787
2,682

3,761
7,520
9,350
9,407

4,596
2,907
2,459
2,052

519
627
600

198
204
233

917
1,026
988

83
179
159

205
191
188

559
1,023

0
200
200

153
160
144

317
486
712

89
177
n.a.

529
477
378

2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

1,808
1,875
1,364
1,380
1,365
1,166
1,069
1,292

534
440 151
310
383
244
237
347

251
230
181
157
137
124
146
235

854
1,022
859
720
654
627
547
"576

169
183
173
193
191
171
139
134

224
278
334
530
511
568
583 '
614

-1,493
1,604
1,228
1,387
n, a .

937
1,105
712
893

24
143
197
205
160

400
436
276
358
577

225
241
125
.189

556
499
516
494
418

•

'

Seasonally Adjusted

l

.

288
285
144
141
133

/

Monthly d a t a f o r commercial banks b a s e d on F e d e r a l R e s e r v e e s t i m a t e s benchmarked
t o C a l l R e p o r t d a t a on r e a l e s t a t e l o a n s o u t s t a n d i n g a s a v a i l a b l e . O t h e r d a t a
d e r i v e d from m o r t g a g e d e b t o u t s t a n d i n g a s r e p o r t e d s e p a r a t e l y by N a t i o n a l Assn.
of Mutual S a v i n g s B a n k s , F e d e r a l Home Loan Bank B o a r d , I n s t i t u t e of L i f e I n s u r a n c e
a n d , t h r o u g h August 1968, t h e F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n , and t h e r e a f t e r by FNMA and t h e Government N a t i o n a l Mortgage A s s o c i a t i o n . Data f o r m u t u a l
s a v i n g s banks and f o r L i f e I n s u r a n c e companies may d i f f e r somewhat from t h o s e
d e r i v e d from r e g u l a r q u a r t e r l y s e r i e s b e c a u s e of minor c o n c e p t u a l d i f f e r e n c e s f o r
which a d j u s t m e n t s a r e n o t made i n t h e monthly s e r i e s . A l t o g e t h e r , t h e s e groups
a c c o u n t e d f o r 87 p e r c e n t of t h e n e t i n c r e a s e e s t i m a t e d f o r a l l h o l d e r s i n 1967.




\

23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)

i

Billions of dollars

Monthly

3.0

2.5
TOTAL, INCL. FN MA • G N M A

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR -

1- to 4QUARTER

TOTAL

--RESIDENTIAL 3

FAMILY

MULTIFAMILY

8.4
7.0

2.6
2.1

5.5
-4.2

* 8.2
6.2

6,8
10.5

3.2
. 3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5 ;
2.7 ;

3.0
3.2
$.5

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8 |

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

2.2
1.8

1966 - I I I p
IVp

18.7
15.2

11.0
9.2

1967 - I p
IIIp
IVp

15.fr
20.5
27.0
27.5

10.0
13.8
19.6
19.9

16.0

1968 - I p
up
IIIp
IVp

27.1
25.9
26.5
30.1

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

M

6.3
5.7
6.5
7.8

1969 - I p
IIP
IIIp
IVp

30.4
28.5
25.1
25.7

22.1
20.1
18.6

17.9
16.5
15.5
13.7

, 4.2
4.7
4.6
4.8

6.1
5.0
5.0
6.0

10.3
9.6
9.5
10.8

2.3 *
1.8 ;
1.2

1970 - I p

19.7

13.4

8.9

4.3

5.2

9.7

1.1 i

IIP

21.2
;

15.7

*

2.2 •

1 D e r i v e d from d a t a on mortgage d e b t o u t s t a n d i n g from F e d e r a l D e p o s i t I n s u r a n c e
C o r p o r a t i o n , F e d e r a l Home Loan Bank Board, I n s t i t u t e of L i f e I n s u r a n c e , Na*
t i o n a l A s s o c i a t i o n of Mutual S a v i n g s Banks, D e p a r t m e n t s of Commerce and A g r i c u l t u r e , F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n , F e d e r a l Housing A d m i n i s t r a t i o n
V e t e r a n s A d m i n i s t r a t i o n and C o m p t r o l l e r of t h e C u r r e n c y . S e p a r a t i o n of non*
farm m o r t g a g e ' d e b t by t y p e of p r o p e r t y , where n o t a v a i l a b l e , and i n t e r p o l a t i o n s
and e x t r a p o l a t i o n ^ , where r e q u i r e d , e s t i m a t e d m a i n l y by F e d e r a l R e s e r v e .
;
2 May d i f f e r somewhat from r e l a t e d f l o w of f u n d s s e r i e s m a i n l y b e c a u s e of more
^
a g g r e g a t i v e t y p e of s e a s o n a l a d j u s t m e n t .
\
3 R e s i d e n t i a l mortgage d e b t i n c l u d e s nonfarm o n l y and i s sum of 1 - t o 4 - f a m i l y
f
and m u l t i f a m i l y mortgage d e b t combined.
!~




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

1 4

FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

/ '
T A B L E 14:
COMMITMENTS I N

/

FNMA A u c t i o n R e s u l t s
IMPLICIT Y I E L D 2 ( p e r

$ MILLIONS

ACCEPTED
906MONTH
DAY

1-YEARll

cent)

WEEK
ENDED

TOTAL
OFFERED

TOTAL

Mar.

9
23

354. 6 395.4

276. 4
239. 0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19
9.14

9.13
9.12

Apr.

6
20

268. 4
315. 7

1 9 0 . ,2
185.,2

41.0
54.0

121.4
98.2

27.8
33.1

9.05
9.02

9.07
9.04

9.10
9.10

May

5
11
18
25

4 4 3 .,3
2 6 9 . ,2
300,,3
2 8 9 ..5

1 9 5 ..5
1 0 2 .,2
136,.3
145,.2

43.5
26.0
32.4
38.9

121.1
63.2
86.4
86.7

38.9
13.0
17.-5
19.7

9,01
9.04
9.11
9.15

9.04
9.07
9.13
9.18

9.10
9.13
9.18
9.22

June

1
15
29

224 .2
249,. 7
156,.3

113 .8
127,. 9
98 .9

31.1
34.2
30.6

71.4
86.7
156.5

11.3
7.0
11.8

9.20
9.27
9.32

9.24
9.30
9.33

9.27
9.31
9.34

July

13

& OVER

90DAY

6MONTH

1-YEAR
& OVER

1

(250.0)-/

Note:
Under the FNMA a u c t i o n s y s t e m , approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for FNMA forward p u r c h a s e c o m m i t m e n t s , subject to an over-all d o l l a r limit a n n o u n c e d by FNMA in a d v a n c e .
Bids
accepted b y FNMA are for d e l i v e r y at the seller's option, and at any
time w i t h i n the specified p e r i o d .
B i d s on proposed h o m e s r e l a t e to
c o n s t r u c t i o n not yet started on w h i c h m o r t g a g e s m a y be delivered only
after c o m p l e t i o n and o c c u p a n c y .
1

For " p r o p o s e d c o n s t r u c t i o n " of new h o m e s o n l y :

2

A v e r a g e s e c o n d a r y m a r k e t yield after a l l o w a n c e for c o m m i t m e n t fee and
required p u r c h a s e and h o l d i n g of FNMA stock, a s s u m i n g p r e p a y m e n t of
15 years for 30-year G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s .
Y i e l d s shown
are gross, b e f o r e d e d u c t i o n of 50 b a s i s p o i n t s fee paid by i n v e s t o r s
to s e r v i c e r s .

3

FNMA a n n o u n c e d




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

for next a u c t i o n .

FNMA "AUCTION" RESULTS

$i Million;

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

6 MONTHS

100

1 YEAR
AND OVER

50

1 3 MONTHS

0

1

12

IMPLICIT YIELD
6-MONTH COMMITMENTS

10

8
$

800
600
TOTAL BIDS RECEIVED
400

200
• V

TOTAL BIDS ACCEPTED
JUNE

AUG.

OCT

1969




DEC.

0
FEB.

APR.

JUNE
1970

' AUG.

OCT.

DEC.

T A B L E 15: Private Housing Starts and Permits

STARTS

1969 - M a y
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970

Jan.
Feb.
Mar.
Apr.
May

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1,533
1,507
1,429
1,376
1,481
1,390
1,280
1,402

877
826
803
752
828
766
762
776

656
681
626
624
653
624
518
626

155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1

21.1
21.5
20.8
22.4
18.3
25.1
18.8
23.2

4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

1,059
1,306
1,392
1,215

577
725
708
691
715

482
581
684
524
485

66.4
74.3
114.7
127.2
120.9

16.5
17.5
25.2
32.4
37.1

3.4
3.9
4.8
5.4
5.2

1,200

.

130.1

121.2
99.7
98.3

106.2

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,323
1,340

1.228
1,245

1,201

93.3
74.7
57.9

1,183
1,191
1,239

46.5
52.9
84.7
89.4
78.6

1,013
1,137
1,099
1,263
1,352

f

T o t a l s t a r t s a r e Census e s t i m a t e s i n c l u d i n g farm f o r b o t h p e r m i t - i s s u i n g and
n o u - i s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d when e x c a v a t i o n b e g i n s ; a l l u n i t s
i n an a p a r t m e n t s t r u c t u r e a r e c o n s i d e r e d s t a r t e d a t t h a t t i m e . FHA and VA
s t a r t s a r e u n i t s s t a r t e d under commitments by t h e s e a g e n c i e s t o i n s u r e or g u a r a n t e e t h e m o r t g a g e s . As r e p o r t e d by FHA and VA, a u n i t i s s t a r t e d when a f i e l d
o f f i c e r e c e i v e s t h e f i r s t c o m p l i a n c e i n s p e c t i o n r e p o r t , which i s made b e f o r e
f o o t i n g s a r e poured i n some c a s e s b u t n o r m a l l y a f t e r t h e f o u n d a t i o n s have been
c o m p l e t e d . O t h e r s t a r t s a r e d e r i v e d a s a r e s i d u a l , a l t h o u g h t o t a l and FHA and
VA s t a r t s a r e n o t s t r i c t l y comparable i n c o n c e p t or t i m i n g ; o t h e r s t a r t s i n clude b o t h u n i t s f i n a n c e d by c o n v e n t i o n a l m o r t g a g e s and u n i t s w i t h o u t m o r t g a g e s .
-Building p e r m i t s b e f o r e J a n u a r y 1963 a r e Census e s t i m a t e s f o r a b o u t 1 0 , 0 0 0 a r e a s
i d e n t i f i e d a s h a v i n g a l o c a l b u i l d i n g p e r m i t system i n 1959. E s t i m a t e s b e g i n n i n g
J a n u a r y 1963 a r e f o r a p p r o x i m a t e l y 1 2 , 0 0 0 and b e g i n n i n g J a n u a r y 1967 1 3 , 0 0 0 , o r
all known p e r m i t - i s s u i n g p l a c e s . U n l i k e s t a r t s , s e a s o n a l l y a d j u s t e d b u i l d i n g p e r m i t s r e f l e c t d i r e c t a d j u s t m e n t f o r d i f f e r e n c e s i n t h e number of working days p e r
month, a s w e l l a s o t h e r d i f f e r e n c e s i n t i m i n g and c o v e r a g e .




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2
BUILDING PERMITS
(in issuing arees)

•CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or moreV

.

.
^

—

• GOVERNMENT UNDERWRITTEN
1

1
1964




1

1
1966

1

111 t i n i ii 1111 i
1968

1970

TABLE 16: Mortgage and Bond Yields

'

:

DATE

FHA
MORTGAGES

CONVENTIONAL
MORT25-YEAR 30-YEAR
GAGES
3

1 9 5 9 - 6 0 - High
1961-66 -JLow
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.

1970 - J a n .
Feb.
Mar.
Apr.
May

n.a.
n.a.

1

o
2

SPREAD BETWEEN YIELDS
ON C0NV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

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

9.29
9.20
9.10
9.11

8.55
8.55
8.55
8.55
8.55

-.74
-.65
-.55
-.56

8.46
8.30
8.60
8.60
9.10

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.69
.77
1.16
1.28
.27
1.20
.26
1.08
-.13
*

—
.99
.60
.50
.01

N e i t h e r m o r t g a g e n o r bond y i e l d s i n c l u d e a l l o w a n c e f o r s e r v i c i n g c o s t s which arcmuch h i g h e r f o r m o r t g a g e s t h a n f o r b o n d s . G e n e r a l l y , bonds pay i n t e r e s t semia n n u a l l y ; m o r t g a g e s , m o n t h l y . Mortgage y i e l d s , i f computed a s e q u i v a l e n t t o
a s e m i - a n n u a l i n t e r e s t i n v e s t m e n t , would be s l i g h t l y h i g h e r t h a n g i v e n i n t h e
table.
2 Based^on F H A - f i e l d - o f f i c e o p i n i o n s a b o u t a v e r a g e b i d p r i c e s i n t h e p r i v a t e
s e c o n d a r y m a r k e t f o r new-home m o r t g a g e s f o r immediate d e l i v e r y . S e p a r a t e
d a t a a v a i l a b l e f o r 25-year and--beginning J u l y 1961—30-year mortgages with
minimum downpayments, w e i g h t e d by p r o b a b l e volume of t r a n s a c t i o n s . Y i e l d s
,computed by FHA, assuming prepayment p e r i o d of 12 y e a r s f o r 2 5 - y e a r m o r t g a g e s
and 15 y e a r s f o r 3 0 - y e a r m o r t g a g e s . Over t h e p e r i o d f o r which t h e y can be
compared, t h e movement of t h e t w o ' m o r t a g e y i e l d s e r i e s h a s been s i m i l a r .
Dashed l i n e s i n d i c a t e p e r i o d s of a d j u s t m e n t t o c h a n g e s i n c o n t r a c t u a l i n t e r e s t
rates.
3 Based on F H A - f i e l d - o f f i c e o p i n i o n on t y p i c a l i n t e r e s t r a t e s (rounded) on conv e n t i o n a l f i r s t m o r t g a g e s p r e v a i l i n g i n t h e m a r k e t a r e a s of i n s u r i n g o f f i c e
c i t i e s . B e g i n n i n g w i t h A p r i l 1960, r a t e r e l a t e s o n l y t o new-home m o r t g a g e s ;
p r i o r t o t h a t d a t e , r a t e r e l a t e d t o b o t h new a s w e l l a s e x i s t i n g - h o m e m o r t g a g e s . Dashed l i n e i n d i c a t e s t h i s change i n t h e s e r i e s .
4 See n o t e f o r T a b l e 1. "




31

MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES
.

Basis Points
—

Y I E L D SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

100

100
1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms
• V

DATE

NEW HOMES

CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
TIVE
(YEARS)
(PER
CENT) RATE
CENT)
2
3

LOAN/
PRICE
RATIO
(PER
CENT)

LOAN
AMT.
($000)
4

1

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

LOAN
AMT.
($000
4

19*9
Apr.
May
June
July

Aug.
Sept.
Oct.

Nov.
Dec.

7.47
7.50
7.62
7.76
7.86
7.89
7.99
7.97
8.07

0.96

0.88

0.84
0.92

0.86

0.92
0.89
0.96

1.06

7.62
7.65
7.76
7.91

8.05
8.13
8.13
8.25

25.4
25.8
25.6
25.5
25.2
25.3
25.3
25 73
2544

72.6
73.2
73.0
72.0
72.3
72.9
72.8
72.8
71.9

24.8
25.0
24.9
24.5
24.3
25.0
24.6
24.6
25.0

8.34
8.41
8.47
8.40

25.0
25.2
25.0
24.8

69.3
71.8
71.1
71.1

25.1
24.9
25.1
24.5

8.00

7.46
7.54
7.64
7.79
7,90
7.98
8.00

0.85
0.83

0.86

8.00
8.08

0.91
0.93
0.91
0.90
0.90
0.93

8.13
8.23

1.02

8.20

0.98
0.90

7.60
7.68
7.79
7.94
8.05
8.13
8.15
8.15
8.24

23.0
22.7

22.9

71.8
71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

8.29
8.41
8.43
8.35

22.4
22.4
22.6
22.8

70.3
70.2
70.4r
70.4

22.8
22.8

22.6
22.2

22.6
22.6

19.9
19.7

20.1
20.1

19.8
19.2
19.5

20.1
20.8

1970
Jan*
Feb.
M a r . r/
Apr.

8.16

8.23
8.29
8.23

1.08

1.09
1.11
1.02

8.26

0.94

20.5
20.4

20.6

20.4

Compiled by Federal Home Loan Bank Board i n c o o p e r a t i o n with Federal Deposit Insurance
C o r p o r a t i o n . Data a r e weighted averages based on p r o b a b i l i t y sample survey of c h a r a c t e r i s t i c s of conventional f i r s t mortgages o r i g i n a t e d by major i n s t i t u t i o n a l lender
groups ( i n c l u d i n g mortgage companies) f o r purchase of s i n g l e family homes. Data exclude loans f o r r e f i n a n c i n g , r e c o n d i t i o n i n g or modernization; c o n s t r u c t i o n loans t o
home-builders; and permanent loans w h i c h . a r e coupled with c o n s t r u c t i o n loans t o ownerb u i l d e r s . Related s e r i e s on conventional mortgage r a t e s o n l y , based on unweighted
opinions of f i e l d - o f f i c e d i r e c t o r s of the Federal Housing A d m i n i s t r a t i o n , a r e a v a i l a b l e
somewhat sooner than t h e r e s u l t s of the FHLBB-FDIC survey, and a r e i n c l u d e d - i n the case
>of new home mortgage r a t e s - - i n Table 16.
—
Fees and c h a r g e s - - e x p r e s s e d as a p e r c e n t a g e of the p r i n c i p a l mortgage amount--include
loan commissions, f e e s , d i s c o u n t s , and o t h e r charges which provide added income t o the
l e n d e r and a r e paid by t h e borrower. They exclude any c l o s i n g c o s t s r e l a t e d s o l e l y to
t r a n s f e r of p r o p e r t y ownership.
I n c l u d e s f e e s & charges amortized over a 10 year period i n a d d i t i o n t o the c o n t r a c t
interest rate.
4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
30
MATURITY
NEW
25

EXISTING

20

I i i i i i i i i i i ' 1 i i i i i i i1 5i i i i
80
L O A N / P R I C E RATIO

NEW

75

EXISTING
70

J_

L

I I I I I I 1 I I I I 1 II M I I6 I5 I
Thousands of dollliars

LOAN AMOUNT
30

NEW

20
EXISTING*

10
I i i i i i i i i i < i 1 i IJ i i i i i i i i
1964




1966

1968

1970
* CHANGE IN SERIES