Full text of H.16 Capital Market Developments : July 20, 1970

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"4P®

SIX M0STS8

emwtMi
1 5.8 Confidentiali(RR.)

J U v
5Bepr20, 1970

CAPITAL
MARKET
iPMENTS

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




9 i.

-

INDEX

3-5

D e v e l o p m e n t s in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n.a.

Not a v a i l a b l e




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

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

.970 - June

5
12
19
26

9.05
9.23
9.30
9.14

8.30
8.42
8.55
8.60

261
383
520
.560

July

3
10
17
24

9.02
8.70
8.58
n. a.

8.60
8.55
8,49
n. a.

360
395
475
400e

, WEEK ENDING:

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

84
89
92
92

1,069
1,285
869
794

100
94
83.
n.a.

886
580
674
n.a.

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

L970 - June

5
12
19
26

6.75
6.85
6.95
6.10

6.92
7.03
7.03
6.86

91
302
397
224

69
72
79
74

608
754
398
509

July

3
10
17
24

6.65
6.50
6.50
n. a.

6.79
6.59
6.60
n. a.

119
179
282
350e

54
67
62
n, a.

634
845
781

1 Derived by a d j u s t i n g to 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
with 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 Service (except 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 companies; and
bonds guaranteed by the Federal Government.)
2 Millions of d o l l a r s unless otherwise i n d i c a t e d .
Note:

See f o o t n o t e s to Table 3




1

T A B L E 2: Details on Inventories
*

DATE
OFFERED

AMOUNT
(MIL. $)

I

'

'

•"

•' -

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

'
ESTIMATED PROPORTION SOLD

•

(•

7/16
7/16
7/15
7/14
7/13
7/9
7/8

x 30.0
35.0
70.0
25.0
15.0,
30.0
16.0

Puget Sd. P.&L.
Ryder System
F l o r i d a Pwr. & L t .
P a c i f i c P&L
Diamond S t s . Tel
Brooklyn Union Gas
Gulf Pwr.

9.50
11.50
8.13
9,63
8.75
9-1/8
8.88

9.55
11.50
7.94
9.50
8.70
8.90
8.70

Baa
5 yrs
Baa
10 y r s
Aa y 5 y r s
BaaL
5 yrs
"Aaa
5 yrs
A
5 yrs
Aa
5 yrs
i

OFFERED

DATE
RELEASED

.'i

\

50%
85%
40%
65%
30%
50%
50%

.. ' /

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

NONE

DATE
1970 - J u n e - 19
26
1970 - J u l y - 3
10
17

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
408
366
370
335 r
385

145
94
129
73
128

CORPORATES
IN SYNDICATE
51
46
0
23
108

N.C. - No c a l l p r o t e c t i o n .
f i g u r e s in m i l l i o n s of d o l l a r s . Blue L i s t i s d a i l y average 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
which i s d a i l y average of t h r e e days ended Wednesday. All o t h e r f i g u r e s a r e as of F r i d a y .




BONDS IN SYNDICATE
Friday figures

M i l l i o n s of d o l l a r s

CORPORATE BONDS IN SYNDICATE

200
100

T

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

DEC.

'68




MAR.

JUN.

1969

SEPT.

DEC.

MAR.

JUN.

SEPT.

DEC.

1970

Y

TABLE 3: High Grade Bond Yields

DATE

1

HEW
CORPORATE
Aaa 1

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 (12/13)
6.13 (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; (12/5)
6.90 (2/21)

7.84
6.55

(12/26)
(1/13)

6.97
5.96

(12/26)
(1/24)

6. 90
4.,82

(12/18)
(1/28)

1970 - High
Low

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

8.60
7.79

(7/3)
(3/6)

7.55
6.60

(5/29)
(3/6)

7.,12
5..95

(5/29)
(3/12)

9.14

8.60

7.27

6,.86

9.02
8.70
8.58

8.60
8.55
8.50

7.10
6.91
6.96

6..79
6 .59
6 .60

1970 - June

26

1970 - J u l y 3
10
17

,

New c o r p o r a t e i s s u e s , with c a l l p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d i n
f o o t n o t e 1 of Table 1) to a Aaa b a s i s .
2
Weekly average of d a i l y f i g u r e s . Average term of bonds included i s
22-24 y e a r s .
3
Weekly" average of d a i l y f i g u r e s .
4
Thursday f i g u r e s . The average r a t i n g of the 20 bonds used in t h i s index
f a l l s midway between t h e four top groups as c l a s s i f i e d by Moody's I n vestors Service.
Note--Highs and lows a r e for 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 s e r i e s .
1




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S V
CORPORATE Aaa

U S GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1968

1969

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
;

1

CORPORATE

PERIOD

1969

1968

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

3,142
3,600e
3,225e

2,748
2,076
2,530

1,428
1,866
2,411

July
August
September

2,900e

2,478
1,427
2,427

2,143
1,432
1,557

1,933
2,375
2,532

2,129
1,767
2,054

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

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

13,572
19,904
26,744

10,882
16,015
21,965

1970
January
February
March

,

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

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

7,977
9,967e

STATE AND LOCAL 2
1970

1969

1968

1
I
!

1,338
1,212
1,499

1,262
987
538

1,178
1,158
1,404

j
1

1,630 V991
l,075e

1,801
1,110
737

1,318
1,143
1,395

1,100e

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

3,840
3,856
4,612
4,366

6,435
8,899
11,881

7,956
12,008
16,574

-

.

4,049e/
3,696e/

Excluding f i n a n c e companies 3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year

6,170
7,037

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 gross proceeds.
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
T o t a l gross proceeds excluding 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.
Note;

AT&T r i g h t s o f f e r i n g included i n May e s t i m a t e .




TABLE 5 ; New Corporate Security I s s u e s , Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH
I
II
III
TV

~mr~~

1970 -

I
He

1969 -

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

,

••

1970 -

*

Jan.
Feb.
Mar.
Aprje
May©
June*

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
1
TOTAL PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
PLACED
OFFERED
STOCK FOREIGN | CONVERTIBLE
6,218
"2,657
1,540
2,023
215
1,355
7,354
1,673
3,411
227
2,268
1,126
6,332
3,186
1,347
1,797
289
750
6,840
1,053
3,479
2,307
115
809
7,977
4,577
1,235
2,147
222
922
9,825
5,125
l,600e
l,300e
n.a.
425
2,076
871
510
694
28
463
2,530
1,272
514
744
137
233
1,279
609
589
2,478
132
214
1,426
685
259
482
122
167
1,222
2,427
479
726
35
369
1,933
969
313
651
59
105
2,375
1,164
226
984
8
303
2,532
1,346
"514
672
48
401
V
2,636
1,595
516
525
61
387
1,802
1,068
266
468
33
249
3,539
1,914
471
1,154
128
286
3,142
2,001
433
708
88
374
3,600
3,000
400
200
n.a.
200
3,225
1,925
500
800
n.a.
75

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

2,584
2,800

2,085
2,460

766
2,175

2,543
2,390

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

811
357
1,416
690
900
1,100

639
540
906
1,107
450
1,050

234
226
306
65
1,800
350

952
680
911
1,280
450
725

• \

l

Other 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 other t r a n s p o r t a t i o n , r e a t e s t a t e
and f i n a n c e , and commercial and o t h e r .
Source: S e c u r i t i e s and Exchange Commission. Q u a r t e r l y supplements a r e a v a i l able.
-




COMMUNICATIONS

MFG.

OTHER
ISSUERS1

.
J •'

7
.
T A B L E 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. T r e a s u r y ) 1

;/
ISSUKR

-

J
*

July 1, through J u l y 17, 1970
TYPE

y

AMOUNT
(MILLIONS

OF

MATURITY

DOLLARS)

COUPON \
RATI: OR
r ; I . i I .TKR1 SV COST

OFFERINC
YIELD

MOOIW 1 .
RATI NC

Corporates
Union Tank Car
D e t r o i t Edison
D e t r o i t Edison




1990

9.88

9.90

A

2000
1995-1978
1975
2000
1976
1995
1995
1995
1990
2000
1995
1990
2010
1990

9.15
9.38 & 8.25
8.75
8.88
8.25
9.13
9.00
8.88
11.00
9.50
8.75
11.50
8.75
6.75

8.63
8.70v
8.25
8.90
8.90
8.72
11.00
9.55
8.80
11.50
8.70
6.75

2000
1976
1975

9.63
8.25
8.13

9.50
8.25
7.94,

Baa
A
Aa

1988

11.00

11,00

Baa

9.15
CO

B e n e f i c i a l Corp
Washington Gas L i g h t Co.
Gulf Power Co.
Duquesne L i g h t Co.
Brooklyn Union! Gas Co.
Consolidated N a t u r a l Gas Co.
J . C . Penney, I n c .
Avco D e l t a Corp.
Puget Sound Pwr. & L t . Co.
I n l a n d S t e e l Co.
Ryder System I n c .
Diamond S t a t e Telephone Co.
Bank America R e a l t y I n v e s t o r
Bank America R e a l t y I n v e s t o r
^ D e t r o i t Edison Co.
P a c i f i c Power & L i g h t
Union Oil Co. of C a l .
F l o r i d a Pwr. & L i g h t Co.
American A i r l i n e s I n c .

Equip T r s t .
25.0
Ctfs.
58.0
Com. Stk.
Gen. & Ref.
75.0
Mtg.
Debs.
75.0
20.0
1 s t Mtg.
16.0
1 s t Mtg.
40.0
1 s t Mtg.
30.0
1 s t Mtg.
Debs.
40.0
S. F. Debs.
150.0
Conv. Debs.
50.0
30.0
1 s t Mtg.
100.0
1 s t Mtg.
35.0
debs.
debs.
15.0
25.5
Conv. Debs,.
51.0
Benf. I n t .
47.6
Com. Stk
25.0
1 s t Mtg.
100.0
debs.
60.0
1 s t Mtg.
Equip. Trstd
78.5
Ctfs.

1.25

Aa
A'
Aa
Aa
A
Aa
A
—

Baa
A
Baa
Aaa
N.R.

T A B L E 6:

Large Loiki tomi Public Security Issues for New Capital (conliniu d)
(Other than U.S. T r e a s u r y ) 1

AMOUNT

ISSUER

TYPE2

•/MILLIONS

OF
DOLLARS)

J u l y 1, t h r o u g h J u l y 17, 1970
COUPON
1
RATE OR
MOODY'S
OITI:Ri:.(
MATURITY j NET INTERRATING
| EST COST
]| . Y 1 L L D

S t a t e and L o c a l
Maryland, State of
Nassau Co., N. Y.
Coastal Industrial Wtr. Auth,
Texas
Omaha, Nebraska
Dallas, Texas ISD
New Jersey, State of
Hawaii, State of
Birmingham-Jefferson Civic
Center Authority, Alabama

--

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

15.0
75.0
25.0

1971-90
1973-85
1973-1995

6.02
5.86
7.35

4.65-6.50
4.90-6.05
5.70-7.40

Aa
Aaa
NR

23.7

1971-2000

7.53

4.90-7.80

A

U.S. G o v ' t .
51.0
I n s , Bonds
407.0
Bds.
debs,
75.0
debs.
25.0
Consol. Bds.300.0

1996-1997
1973
2000
1976
1975

8.75
7.95
9.25
9.00
7.95

3.0.
3.0.

46.8
43.6

S.F. Rev.
G.0.
G.O.
G.0.
Rev.

16.0
10.2

G.0.

1973-85
1971-99

6.03

Other
P a c i f i c Far East Line, Inc.
F e d e r a l Land Banks
Ontario (Province of)
Nova S c o t i a ( P r o v i n c e o f )
F e d e r a l Home Loan Banks

8.75
7.95
9.25
9.11
7.95

Hights 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 ovv
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 .
In 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 , G . O . . d e n o t e s gem-ral >bl i gat i on;
'<ev.-l!t.# revenue o b l i g a t i o n s secured only by income from p u b l i c w t i l i t i e s . ,
R e v . - Q . - l i t . , revenue bonds secured only by income from q u a s i - u t i 1 i t i e s ; Rev.-S.T
revenue bonds secured by revenue from s p e c i f i c t a x e s o n l y ; R t v . - K v n t . , revenue
bonds s e c u r e d so lie I y by l e a s e payments.
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 - 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
—

Aa
A
—

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

100.0
35.0
100.0
40.0
25.0
60.0

J u l y 21
J u l y 21
J u l y 21
J u l y 21
J u l y -#1
J u l y 22

15.0
60.0
20.0

J u l y 22
J u l y 22
J u l y 22

60.0
50.0
17.5
75,0
17.0
50.0

July
July
July
July
July
July

35.0
25:0
20.0

July
July
July

Corporates
B e l l Telephone of Penna.
A.0 o Smith Corp. ,
t r a v e l e r s Corp.
Northern N a t u r a l Gas Co.
Amerace Esna Corp.
C o n t i n e n t a l Can Co.
Kansas-Nebraska N a t u r a l
Gas Co.
Philadelphia Electric
Pioneer N a t u r a l Gas Co.

debs.
debs.
debs.
debs.
debs.
debs.
debs.
Cum. P r e f . Sfck.
debs.

P f d . Stk.
Duke Power Co.
debs.
El Paso N a t u r a l Gas Co.
M i s s i s s i p p i Power & LightCOw 1 s t Mtg.
debs.
Tenneco Corp.
Gen '1 Telephone Co. of Mich. bds.
1 s t Mtg.
C a r o l i n a Pwr. & L i g h t Co.
Northern I n d i a n a P u b l i c
1 s t Mtg.
S e r v i c e Co.
Notes
Monogram—Industries
S.F. debs
B-W Acceptance Corp.
1 s t & Refund'
Duke Power Co.
ing Mtg.
1 s t Mtg.
Gen'1 T e l . & E l e c . Corp.
debs.
National Fuel Gas Co.
1 s t Mtg.
Northern I l l i n o i s Gas Co.
debs.
Southwestern B e l l T e l . Co.
Wisconsin Pub. Service Corp. Bonds
debs.
Western E l e c t r i c Co.




100.0
90.0
21.0
35.0
150.0
45.0
150.0

28
28
28
28
29
30

Aug. 5
Aug. 5
Aug. 10
Aug. 11
Aug. 12
Aug. 18
Sept. 29

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

(Other than U.S. Treasury)'
. ,
AMOUNT.
(MILLIONS
. 0
TYPE
OF
DOLLARS)

•
ISSUER

ft

As of J u l y 1 7 , 1970
—
—
APPROXIMATE DATE
OF OFFERING

S t a t e and Local
T e x a s , S t a t e of
Oklahoma C i t y , Okla.
New York, S t a t e
P h i l a d e l p h i a , Pa.
North Miami, F l a .
Ohio, P u b l i c F a c i l i t i e s Coram.
Penna, S t a t e of
P o r t of S e a t t l e , Wash.
Long Beach, C a l i f .
D e t r o i t , Mich.
Redondo, Beach C a l i f ,
P a r k i n g Auth.
Boston, S t a t e of
Oakland Co, Mich.
Kentucky
Mecklenburg C o . , N. C.
T a y l o r , Mich. S/D
San F r a n c i s c o Bay Area Rapid
Transit Dist.
Oregon, S t a t e of
* S t . P a u l , Minn.
Los Angeles DWAPS
Ohio, S t a t e of
*Miami, F l a .

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

15.0
21.3
60.0
48.5
.
12.0
65.0
75.0 :
28.0
30.0
46.0

July
July
July
JulyJuly
July
July
July
July
July

Rev.
G.O.
G.O.
G.O. —
G.O.
G.O.

11.9
20.0
15.0
10.0
16.9
12.2

July
July
July
Aug.
Aug.
Aug.

20
21
21
21
21
23
28
28
29

1
4
4

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

50.0
55.0
20.5
39.0
100.0
12.5

Aug.
Aug.
Aug.
Aug.
Sept.
Oct.

5
18
19
26
3
8

Bonds

300.0

July

15

Other
F e d e r a l Home Loan Banks

*
1
2

Included in t a b l e f o r f i r s t t i m e .
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 - o f F e d e r a l A g e n c i e s .
Postponments:
McDonnell Douglas Corp. - 100.0 - market c o n d i t i o n s
Beck I n d u s t r i e s I n c . - 15.0 - f i n a n c i a l t e c h n i c a l i t i e s
New York, New York - 170.2 - b i d s r e j e c t e d
S c o v i l l M a n u f a c t u r i n g - 3 5 . 0 - market c o n d i t i o n s




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

TRADING VOLUME 2

STOCK PRICES 1
S&P
500 3

DATE

AMEX4

D . J . - IND.

- NYSE

AMEX

1968 - High
Low

108.37(11/29) 985.21(12/13)
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)

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)

5
12
19
26

76.17
74.21
77.05
73.47

695.03
684.14
720.43
687.84

20.99
20.72
21.00
20.22

3
10
17

72.92
74.57
77.69

689.14
700.10
735.08

19.95
19.93
20.19 ;

1970 - High
Low
1970 - June

July

968.85 ( 5/14)
769 . 93(12/17)

1.

F i g u r e s o t h e r than 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 = 10.

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 .

71.9
-39.0
48.0
49.5

27.4
10.3
i3.o
15.0

35.1
53.8
49.7

8.3
12.1
10.6

.

,

Highs and lows a r e

*
|
' f
p

4.

NYSE i s t h e New York Stock Exchange; AMEX i s t h e American S t o c k Exchange.
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 conducted f o r 5 - 1 / 2 h o u r s p e r day and 5 days 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 , however, 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 over t h e time p e r i o d s , shown below;

I
f
ft
|
>
•

From;

Through;

August 8 , 1967
J a n u a r y 22, 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 20, 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

Days/
Week
5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

" s

15

STOCK PRICES AND TRADING VOLUME
AMEX
36

32

D.J.
(Ind.)

Weekly
M i

M M M M i

1 1 1 1 1 1 1 1 1 1 1

~"STOCK PRICES

—

-

AMEX PRICE LEVEL INDEX A n

28

24

-

20

—\

12

1280 128

1200 120

1120 112
/

16

SAP
(500)

S&P'S 5 0 0

A /

7 ^

/A
W L

-

/ j v
U

W

W

A

/ V

V

yv

i

\

\yi

/ V V .

V

/

D . J . IND.

\yxyj

\y-

A
A

A
Vv

\ / v A

V

•

—

A
^

V

\

-

8

1040 104

960

96

880

88

800

80

720

72

Millions of shares

60
AMEX TRADING VOLUME (TOTAL FOR W E E K )

ill ill ill
NYSE TRADING VOLUME (TOTAL FOR W E E K )

1966

1967




1968

1969

1970

T A B L E 9: Security Credit

;

END OF PERIOD
itsbanding:
969 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

CUSTOMERS'
• NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT - BROKERS AND
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
8,214
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

5,390
5,129
4,732
4,442
4,460
4,490
4,498
,4,642

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

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

,969 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

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

110
-360
-210
-200
-110
50
- 20
- 40

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

7
. 1
-302
-206
2
174
-140
190

423
-261
-397

.970 - J a n .
Feb.
Mar.
Apr.
MayP

-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

.970 - J a n .
Feb.
Mar.
Apr.r
MayP
Change
Dutstanding *.

\

*•»

-40
-40

'290

18
30
8
144

Margin d e b t , as r e p o r t e d by the New York Stock Exchange. Although margin debt
u n t i l March 1968 included loans secured by U.S. governments, the amount-of such
loans included i s thought to have been small.
2 . "Bank loans to o t h e r s than brokers and d e a l e r s f o r purchasing or carrying, secur i t i e s o t h e r than U.S. governments."
3
The d i f f e r e n c e between customers' n e t d e b i t balances and c u s t o m e r s ' n e 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 extended by brokers and
d e a l e r s t o the n o n f i n a n c i a l p u b l i c .
NOTE: With the exception of bank loan d a t a , f i g u r e s a r e supplied by the New York
Stock Exchange and a r e end of month d a t a . Bank loans a r e f o r weekly r e p o r t i n g
l a r g e commercial banks. Broker d a t a i n c l u d e s loans f o r r e g u l a t e d s e c u r i t i e s ; bank
data i n c l u d e s loans f o r the purpose of purchasing or c a r r y i n g any s e c u r i t y , whether
r e g u l a t e d or n o t .
'
• . »




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries

($ m i l l i o n s )

1969 - Apr.
May
June
1970

Apr.
May g /
June ]>/

1969 - Dec.
1970 - J a n ;
Feb.
Mar;
Apr.
May P /
June P/

SAVINGS 6. LOAN ASSOCIATIONS
TOTAL
SHARE CAPITAL
DEPOSITS
NET
ANNUAL
NEW
ANNUAL
NET
GROWTH
MONEY2 NET
GROWTH
1
FLOW
FLOW
. RATE 1
RATE

5,082
4,208
2,551

2,376
1,143
- 747

10,649
7,399
4,020

-197
307
324

325
227
266

- 516
642
1359

+ 6
326
450

136
224
125

II |

DATE

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
ANNUAL
NET
GROWTH
FLOW RATE 1
9.3
7.1
4,0

9.4
6.0
3-1

6,129
2,738
-1,003

15,371
11,607
6,371

9.4
6.3
3.4

8,505
3,881
-1,750

- 543
601
- 116

- 713
949
1683

——

868
828
382

——
207
188
——
754
707
1682
267
—
Seasonally Adlusted

201
1,080
2*082

-- -

229

4.1

47

0.4

-117
298
244
371
360
319

-2.1
5.4
4.4

- 754
247
1,021
973
638
772

-6.7
2.2
9.1
8.6
5.6
6.8

6.6

6.4
5.7

NET
NEW
MONEY 2

—

..

• .

——
- «* — • •

276
- 871
545
1,265
1,344
998
1,091

52
-—

1.6
-5; 2
3;3
7;5
8,0
5.9
6.4

Annual growth r a t e f o r monthly 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 both 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 .
Regular d e p o s i t s a t mutual s a v i n g s banks exclude i t e m s such as 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 small 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 Savings Banks and F e d e r a l Home Loan Bank Board.




m

19

SAVINGS FLOWS (seasonally adjusted)
Monthly

M i l l i o n s of d o l l a r s

2000

1600
TOTAL

1200
800
400

400

1200
SAVINGS & LOANS

800

400

400

800
MUTUAL SAVINGS BANKS

400

400
1966

1967




1968

1969

1970

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

DATE

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

NET CHANGE
OUTSTANDING COMMITMENTS
ALL
ALL
MUTUAL
SAVINGS
SAVINGS &
SAVINGS &
TOTAL
BANKS
LOAN
LOAN \
(N.Y.
STATE)
ASSOCIATIONS
ASSOCIATIONS
( B i l l i o n s of D o l l a r s , So;a s o n a l l y Adjusted) 1/
10.4
10.2
9.9
9.5
9.2
8.9

8.6
8.2

7.9
7.6
7.8

8.0

.11
.18

5.9
5.8

3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6 ;

5.6
5.4
5.2
5.4
5.8

2.6
2.5
2.5
2.4
2.2

.17
.30

7.1
7.0

6.8

^.5

6.4

6.1

.32
.36
.31
.33
.24
.25

.26

.13r
.24

MUTUAL "
SAVINGS
BANKS
(N/Y.- STATE)

.12

.05
.06
.10
.12
.13
.09
.06
.13

.22
.23
.21
.26r
.38

.04
.07
.05
.13
.14

.06

.11
.22
.24

.18

.23

.18

Based on data from Federal Home Loan Bank Board and Savings Banks A s s o c i a t i o n s of
New York S t a t e . Net changes a r e derived d i r e c t l y from unrounded o u t s t a n d i n g s
l e v e l s as r e p o r t e d and a f t e r seasonal adjustment by Federal Reserve. S u b t o t a l s
may not add t o t o t a l s because of rounding. Mutual Savings Banks and t o t a l data
i n c l u d e b u i l d i n g loans beginning August 1967.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

B i l l i o n s of d o l l a r s

TOTAL

N Y. MSB'S

I n c l u d e s b u i l d i n g l o a n s b e g i n n i n g A u g u s t 19.67

1960




1962

1964

1966

1968

1970

22

TABLE 12: Net Change in Mortgage H o l d i n g s 1

DATE

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

TOTAL
INCLUDING
FNMA-GNMA

Not Seasonally A d j u s t e d
3,761
2,720
4,705
7,520
3,153
4,639
9,350
2,787
6,677
9,407
2,682
5,535

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

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

198
204
233

917
1,026
* 988

83
179
159

205
191
188

153
160
144

317
486
712

89
177
n.a.

529
477
378

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

24
143
197
205
160

400
436
276
358
577

225
241
125
189

556
499
516
494
418

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

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

1969 - Mar.
Apr.
May

1,922
2,227
2,165

1,717
2,036
1,980

519
627
600

1970 - Mar.
Apr.
May

1,088
1,500
n. a.

559
1,023
n. a.

0
200
200

1969 - May
June
July
^ Aug.
Sept
Oct.
Nov.
Dec.

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

1970 - Jan.
Feb.
Mar.
Apr.
May

1,493
1,604
1,228
1,387

937
1,105
712
893
n. a.

288
285
144
141
133

1966
1967
1968
1969

:

FNMA-GNMA

Seasonally Adjusted

1

-

,

Monthly data f o r commercial banks based on Federal Reserve estimates, benchmarked
to C a l l Report data on r e a l e s t a t e loans o u t s t a n d i n g as a v a i l a b l e . Other data
derived from mortgage debt o u t s t a n d i n g as r e p o r t e d s e p a r a t e l y by National "Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, I n s t i t u t e of L i f e Insurance
and, through August 1968, the Federal National 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 the Government National Mortgage A s s o c i a t i o n . Data f o r mutual
savings banks and f o r L i f e Insurance companies may d i f f e r somewhat from those
derived from r e g u l a r q u a r t e r l y s e r i e s because of minor*conceptual 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 not made in the monthly s e r i e s . A l t o g e t h e r , t h e s e groups
accounted f o r 87 per cent of, the net i n c r e a s e estimated f o r a l l h o l d e r s in 1967.




23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

B i l l i o n s of

dollars

3.0

2.5

TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

B i l l i o n s of d o l l a r s , SAAR 1 - to 4FAMILY

MULTIFAMILY

11.0

8.4
7.0

2.6

2.1

5.5
4.2

10.0

. 6.8
10.5
15.7

16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5
4.0

6.3
5.7
6.5
7.8

21.2
20.1
18.6

22.1

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

13.4

8.9

4.3

5.2

9.7

TOTAL

RESIDENTIAL"5

1966 ,-j I I I p
I IVp

18.7
15.2

1967 -!j Ip
IIP
IIIp
IVp

15.6
20.5
27.0
27.5

13.8
19.6
19.9

1968 4 Ip
I Hp
1
IIIp
IVp

27.1
25.9
26.5
30.1

1969 - Ip
IIP
IIIp
IVp

30.4
28.5
25.1
25.7

1970 - Ip

19.7

QUARTER

9.2

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

8.2

2.2

7.2

> 1.8

8.7

2.5
2.7

1.8

6.2

1.8

8.2

8.8

9.4
8.9

10.1

11.7

;

2.2
2.3

1.8
1.2

1.1

Derived from data on mortgage debt o u t s t a n d i n g from Federal Deposit Insurance
Corporation-, Federal 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- Clonal A s s o c i a t i o n of Mutual Savings Banks, Departments of Commerce and Agric u l t u r e , Federal National Mortgage A s s o c i a t i o n , Federal Housing A d m i n i s t r a t i o n ,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of p r o p e r t y , where not a v a i l a b l e , and i n t e r p o l a t i o n #
and e x t r a p o l a t i o n s , where r e q u i r e d , estimated mainly by Federal Reserve.
"May d i f f e r somewhat from r e l a t e d flow of funds s e r i e s mainly because of more
a g g r e g a t i v e type of seasonal a d j u s t m e n t .
R e s i d e n t i a l mortgage debt includes nonfarm only and i s sum of 1 - t o 4- family
and m u l t i f a m i l y mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

,

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 a n n u a l r a t e

TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Auction R e s u l t s

\ •

9
23

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD2 (per c e n t )
ACCEPTED '
TOTAL
TOTAL
1 -YEARtl 90901-YEAR 1
66OFFERED
DAY- M0NTH & OVER
& OVER
DAY
MONTH
354 6
276.4
60.7 136. 5
79.,2
9,.16
9..19
9.13
395 4
239.0
47.5 124.,5
67..0
9,.12
9,.14
9.12

Apr. \

6
20

268.,4
315.,7

190.2
185.2

41.0
54.0

121.,4
98.,2

May

5
11
18
25

443,.3
269.,2
300,.3
289..5

195.5
102.2*
136.3
145.2

43.5
26.0
32.4
38.9

June

1
15
29

224,.2
249..7
156.,3

113.8
127.9
98.9

July

13
27

WEEK
ENDED

1970 - Mar.

286,,2
i

9,.05
9,.02

9,.07
9..04

9.10
9.10

121..1
63.,2
86..4
86.,7

27..8
33,.1
4
38,.9
13,.0
17;.5
19 .7

9,.01
9,.04
9 .11
9 .15

9,.04 i
9,.07,
9 .13
9 .18

9.10
9.13
9.18
9.22

31.1
34.2
30.6

71..4
86..7
56. 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

113.3
25.0
(250.0)^/

73..0

15,,3

9 .20

9 .21

9.22

V

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. B i d s on proposed homes relate to
construction not yet started on which mortgages may beSs^elivered 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 50 basis points fee paid by investors
to servicers.

 3 FNMA announced


limit of accepted bids

for next a u c t i o n .

27

FNMA "AUCTION" RESULTS
'

$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

6 MONTHS
100

1 YEAR
AND OVER

50

3 MONTHS
12

IMPLICIT YIELD
6-MONTH COMMITMENTS

—

•

" n

•

•

i

" .

-r
10

•;"

i

i

i

l

l

1

'

1

1

1

1

1

I

I

1 '

1

1 ~

8

I
"

—

TOTAL BIDS RECEIVED

.

-

800

600

f \
V y A

.

400

200
|

|

| TOTAL BIDS ACCEPTED
AUG.
1969




1

I

I

I

1
l
JUNE
1970

I

l"

I

I
OCT.

0

I
DEC.

TABLE 15: Private Housing Starts and Permits

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
877

1969 - May
June
July
Aug.
Sept.
Oct.
Nov.
i Dec.

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

803
752
828
766
762
776

656
681
626
624
653
624
518
626

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

1,059
1,306
1,392
1,215
1,200

577
725
708
691
7l\5

482
581
684
524
485

1 , 5 3 V

82 &

TOTAL

155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1
66.4_
74.3
11%X

127.2
120.9

UNADJUSTED
TYPE OF FINANCING
FHA VAj
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
— ANNUAL
RATE) 2

21.1
21.5
20.8
22.4
18.3
25.1
18.8

4.3
4.6
4.7
4.2
4.8
5.0
3.9

130.1
121.2
99.7
98.3
106.2
93.3
74.7
57.9

1,323
1,340
1.228
1,245
1,201
1,183
1,191
1,239

16.5
17.5
25.2
32.4
47.1

3.4
3.9
4.8
5.4
5.2

46.5
52.9
84.7
89.4
78.6

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

23.2 4.2

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 both p e r m i t - i s s u i n g and
noi.-Issuing 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 excavation begins; a l l u n i t s
in an apartment s t r u c t u r e are considered s t a r t e d a t t h a t time. 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 agencies to i n s u r e ^ o r guarantee the mortgages. 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 the f i r s t compliance 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 in some cases but normally a f t e r the foundations have been
completed. Other s t a r t s a r e derived as a r e s i d u a l , although t o t a l and FHA and
VA s t a r t s a r e not s t r i c t l y comparable in concept or timing; other s t a r t s i n clude both u n i t s financed by conventional mortgages and u n i t s without mortgages.
Building permits b e f o r e January 1963 are Census e s t i m a t e s f o r about 10,000 a r e a s
i d e n t i f i e d as having a l o c a l b u i l d i n g permit system in 1959. Estimates beginning
January 1963 a r e f o r approximately 12,000 and beginning January 1967 13,000, or
a l l known p e r m i t - i s s u i n g p l a c e s . Unlike 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 mits r e f l e c t d i r e c t adjustment f o r d i f f e r e n c e s in the number of working days per
month, as well as o t h e r d i f f e r e n c e s in timing and coverage.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates.

~

'

M i l l i o n s of u n i t s '

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2
/

PER CENT OF UNADJUSTED TOTAL STARTS

ZBUILDING PERMITS
(in issuing areas)

MULTI-FAMILY.

40

GOVERNMENT UNDERWRITTEN
1964

1966

/




1968

1970

TABLE 16: Mortgage and Bond Yields

FHA
MORTGAGES '

SPREAD BECONVENTWEEN YIELDS
TIONAL
ON C0NV. &
M0RT25-YEAR 30-YEAR - GAGES
FHA MORTGAGES
3

DATE ;

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - rHigh
(Low
1969 - ! High
Low

6.26
5.43
6.73
n.a.
n.a.
n.a.
n.a.
n.ai
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

1970 - Jan#
Feb.
Mar.
Apr.
May

n.ai
n.a.
n.a.
n.a.
n.a.

9.29
9.20
9.10
9.11

8.55
8.55
8.55
8.55
8.55

.•

1

.23
.25
j .30
- -11
-712
.12
-.27
.40
.13
-.74
-.65 *
-.55
-.56

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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

8.30
8.60
8.60
9.10

.99
.60
.50
.01

N e i t h e r mortgage nor bond y i e l d s i n c l u d e allowance f o r s e r v i c i n g c o s t s which a r e
much higher f o r mortgages than f o r bonds. G e n e r a l l y , bonds pay i n t e r e s t semi~
a n n u a l l y ; mortgages, monthly. Mortgage y i e l d s , i f computed as e q u i v a l e n t to
- a semi-annual i n t e r e s t investment, would be s l i g h t l y higher than given in the
table.
'
.
—
2 Based on F H A - f i e l d - o f f i c e opinions about average bid p r i c e s in the p r i v a t e
secondary market f o r new-home mortgages f o r immediate d e l i v e r y . Separate
data 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, weighted by probable volume of t r a n s a c t i o n s . Yields
computed by FHA, assuming prepayment period of 12 years, f o r 25-year mortgages
and 15 years f o r 30-year mortgages. Over the period f o r which they can be
*
compared, the movement of the two mortgage y i e l d - s e r i e s has been s i m i l a r .
r
Dashed Fines i n d i c a t e p e r i o d s of adjustment to changes in c o n t r a c t u a l i n t e r e s t
\
^
rates.
/>
3 B a s e d . o n ' F H A - f i e l d - o f f i c e opinion 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 mortgages p r e v a i l i n g in the market 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 . Beginning with A p r i l 1960, r a t e r e l a t e s only to new-home mortgages;
p r i o r to t h a t d a t e , r a t e r e l a t e d to both new as w e l l a s existing-home mortgages. Dashed l i n e i n d i c a t e s t h i s c h a ^ e in the s e r i e s .
4

See note for Table 1.




31

MORTGAGE AND BOND YIELDS
Monthly

"

Per cent

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW I S S U E S

.

^

Basis Points

Y I E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE A a a C O R P O R A T E BONDS)

200

100

100
1962




1964

1966

1968

1970

TABLE 17: Conventional. Mortgage'Terms

NEW, HOMES

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

7.47
7.50
7.62
7.76
7.86
7.89
7,99
7.97
8.07

2

0.96

0.88
0.84
0.92

3

7.62
7.65
7.76
7.91

0.86

8.00

0.92
0.89
0.96

8.05
8.13
8.13
8.25

1.06

25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

EXISTING HOMES

LOAN/
PRICE LOAN
RATIO AMT,
(PER ($000)
CENT)
4
72.6
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

69.3
71.8
71.1
71.1

25.1
24.9
25.1
24.5

73.2

CON- FEES &
TRACT CHARGES EFFEC-

(PER
RATE
TIVE
CENT) RATE
(PER
CENT)
2
3
7.46
7.54
7.64
7.79
7.90
7.98

0.85
0.83

0.86

8.08

0.91
0.93
0.91
0.90
0.90
0.93

8.13
8.23

1.02

8.26
8.20

0.98
0.90

8.00

8.00

7.60
7.68
7.79
7.94
8.05
8.13
8.15
8.15
8.24

LOAN/

MATU- PRICE
RITY RATIO
(YEARS) (PER

LOAN
AMT.

($000)

CENT)

23.0
22.7

22.9

71.8
71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

20; 1
20.8

22.4
22.4

70.3
70.2

20.5
20.4

22.6

70.4r

20.6

22.8

70.4

20.4

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

1970

8.16
Jan.
8.23
Feb.
Mar. r/ 8 . 2 9
Apr.
8.23

1.08
1:09
1.11
1.02

8.34
8.41
8.47
8.40

25.0

25.2
25.0
24.8

0.94

8.29
8.41
8.43
8.35

1

Compiled by F e d e r a l 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 m o d e r n i z a t i o n ; c o n s t r u c t i o n loans t o
home-builders; and permanent loans which a r e coupled with c o n s t r u c t i o n loans to 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 t h e F e d e r a l Housing A d m i n i s t r a t i o n , a r e available
somewhat sooner than t h e r e s u l t s of the FHLBB-FDIC survey, and a r e included-in the case
of new home mortgage r a t e s - - i n Table 16.

2

Fees and charges—expressed 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 to the
lender 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 t o
t r a n s f e r of p r o p e r t y ownership.

3

I n c l u d e s f e e s & charges amortized over a 10 y e a r 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
Monthly

Years

MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

NEW

V. "

EXISTING

11111111111 65
T h o u s a n d s of d o l l a r s

LOAN AMOUNT

NEW

EXISTING

1964




1966

1968

1970
* CHANGE IN SERIES