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DECONTROLLED AFTER SIX MONTHS
L.5.8 Confidential(F.R.)

•

J u l y 28.' 1969.

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX

3 5

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 o 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 o.

Revised
Not a v a i l a b l e




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - J u l y

4
11
18
25

Aug.

Aug.

7.63
7.68
7.52
7.58

4
11
18
25

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

7.03
7.08
7.10
TflO

86
259
548
220

49
100
86"
77

771
424
532

n.a.

l£/

WEEK ENDING:

1969 - J u l y

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

200e

n.a.

467

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX
5.55
5.52
5.52
5.62

ljj/

5.68
5.65
5.62
5.86

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS .. OF WEEK
WITHIN 28 DAYS
r/129
188
346
231
150 e

57
58
70
57

690
653
656
763

n.a.

1 Derived 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 companies, and
bonds g u a r a n t e e d by t h e F e d e r a l Government.)
' -L
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:

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




TABLE 2: Details on Inventories

DATE '
OFFERED
~V

AMOUNT
(MIL. $)

7/23
7/23
7/23
7/22

30.0
75.0
20.0
30.0

OFFERED

7/23
7/24

27
3
11
18
25£/
1V
1

v-»i.

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

'

25.0
100.0

Dayton-Hudson
Commonwealth E d i s o n

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
June
July

A r k a n s a s La. Gas
B e n e f i c i a l Finance
N a t i o n a l F u e l Gas
Cons. N a t . Gas Debs.

8.08
8.25
8.05
7.73

A
N.R.
A
Aa

5 years
3
5
5 years

ESTIMATED PROPORTION SOLD

60%
98%
25%
30%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND
ISSUER

DATE

7/16
7/17

; '

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL RATING AND
'
'
I
t
YIELD CALL PROTECTION
COUPON
ISSUER
.
'

349
361
390
463
519

45
86
127
180
203

7-3/4
8

7.80
7.50

20
25

ESTIMATED PRO-

A
i 10 y r s .
Aaa
4 yrs.

107.
50%

i
CORPORATES
IN SYNDICATE
53
22
10
78
57

J.,

All fig
 u r e s i n 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 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
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 a s of F r i d a y .


BONDS IN SYNDICATE
Millions of dollars

200
100

—i

i—i—|—r~i—i—i—i—i—i—i—i—!—i—f—i—r

i—i—!—i—r—r

MUNICIPAL BONDS IN SYNDICATE

300
200
100

SEPT.

DEC.

'67




JUN.

1968

SEPT.

JUN.

1969

\ .

'

Ox

TABLE 3: High Grade Bond Yields

;

DATE

NW '
E
CORPORATE
Aaa *

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS4

,
j

1967 * High
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/7)
3.40(2/2)

i

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(12/26)
4.07(8/8)

j

1969 - High
Low

7.75(6/13)
6.90(2/21)

7.10(7/11)
6.55(1/3)

6.41(5/30)
5.96(1/24)

5.86(6/12)
4.82(1/28)

i

1969 - J u n e 20
27
July 4
11
18
25

7.66
7.50
7.63
7.68
7.52
7.58

7.03
7.03
7.03
7.08
7.10
7.10

6.25
6.25
6.30
6.31
6.25
6.24

5.79
5.68
5.68
5.65
5.62
5.86

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 term 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
Thursday 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 top g r o u p s a s c l a s s i f i e d by Mtiody'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

Per c e n t

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U.S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

1965




i

1966
\

1967

1968

1969

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

GROSS PROCEEDS
CORPORATE1

PERIOD
1969p

1968p

STATE AND LOCAL 2
1967

1969p

January
February
March

1,771
1,608
1,799

1,684
1,418
2,362

April
May
June

2,707
2,050e
2,560e

1,428
1,866
2,411

2,015
1,518
2,674

j
1
|

July
August
September
'

2,075
2,045
2,098

2,600e

2,143
1,432
1,557

2,589
2,481
1,763

j
!
j

2,129
1,767
2,054

2,409
1,500
2,385

5,178
5,704
5,133
•5,950

5,464
6,208
6,832
6,294

10,882
16,015
2i;965

11,672
18,504
24,798

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

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

6,218
7,317

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

5,107
5,427
4,785

I
|

1,265
986

1968p

1967

1,178
1,158
1,404

1,492
1,236
1,450

1,779
1,085
700e

1,318
1,143
1,395

1,130
1,254
1,497

10,50e

1,469
1,699
1,444

950
860
1,340

2,230
1,021
1,115 .

975
1,401
1,182

3,740
3,856
4,612
4,366

4,177
3,881
3,150
3,557

7,956
12,008
16,574

8,059
11,209
14,766

525

2,771
3,564

3

5,308
6,063
6,584
5,859
23,814

S e c u r i t i e s and Exchange Cotnmission 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 of p r i n c i p a l amounts.
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.




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

QUARTER
OR
MONTH
1968 - I
II
III
IV
1969 - I
lie/
1968 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - J a n .
Feb.
Mar.
Apr.
Maye/
June e /
1

GROSS PROCEEDS BY
TYPE OF ISSUE
CM O
O MN
AND
MEMO:
BONDS
TOTAL PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
STOCK FOREIGN | CONVERTIBLE
OFFERED
5,178
5,705
5,133
5,951
6,218
.7,317
2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,075
2,045
2,098
2,707
2,.050
2,560

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

2,465
3,105
2,606
2,555
2,657
3,377

1,724
1,644
1,361
1,922
1,540
1,793

989
956
1,166
1,474
2,023
2,105

313
172
124
113
215
n.a.

584
758
1,037
902
1,355
1,536

1,907
1,703
1,657
1,712
1,407
1,340

1,442
1,244
1,160
1,435
1,346
1,609

422
536
490
319
473
424

1,407
2,223
1,825
2,483
2,991
3,909

1,340
1,244
637
727
1,009
939
607
980
842
835
1,267
900
1,210

685
528
400
433
595
362
965
636
395
509
634
550
650

385
372
396
398
525
466
483
460
808
755
805
600
700

52
47
49
28
24
49
40
103
74
38
9
n.a.
n.a.

239
605
211
221
365
211
326
376
578
401
436
700
400

767
843
362
453
640
421
651
403
513
491
515
500
325

507
239
446
475
674
443
319
627
315
404
739
320
550

239
239
95
156
115
162
41
186
56
231
44
200
180

898
822
530
472
700
741
1,044
860
1,161
970
1,409
1,030
1,470

^

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 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.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.
\




T A B L E 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1

1

•

J u l y 1 t h r o u g h J u l y 2 8 . 1969.

ISSUER:

. TYPE 1 "

AMOUNT V
(MILLIONS

OF

MATURITY

DOLLARS)

COUPON
. RATI: OR
NKI 1..TER1' ST COST

OFFERING.
YIELD

MOODY'' ::
RAT I NC

Corporate
Central Tele. & U t i l i t i e s
Corp.
1 s t mtg. bds.
Dow Chemical
Debs.
Southern B e l l Telephone
& T e l e g r a p h Co.
I Debs.
P e n n a . L i f e Co.
. Com. s t k .
A t l a n t i c R i c h f i e l d Co.
Com. s t k .
Weyerhauser Co.
S . F . debs
U n i t e d Gas P i p e L i n e
Debs.
N a t ' 1 . Cash R e g i s t e r Co.
S . F . debs
Wisconsin-Gas Co.
1 s t mtg. b d s .
Commonwealth E d i s o n Co.
1 s t mtg. b d s .
C i t i e s S e r v i c e Co.
Debs, w'/w
Dayton-Hudson C o r p .
S . F . debs
Lomas & N e t t l e t o n F i n ' l .
Corp.
Conv. d e b s ,
Masco C o r p o r a t i o n
Conv. sub . d e b s .
C o n s o l i d a t e d N a t ' 1 . G a s Co. Debs.
B e n e f i c i a l F i n a n c e Co.
Debs.
A r k a n s a s L o u i s i a n a Gas Co. 1 s t m t g .
N a t ' 1 . F u e l Gas Co.
S.F. debs!.
*Ocean D r i l l i n g &
E x p l o r a t i o n Co.
3onv. debs,




25.0
100.0

1994
1999

8.00
7-3/4

8. 00
7. 75

Aa
A

150.0
32.3
168.0
150.0
45.0
100.I D
16.0
100.0
100.0
25.1D

1999

8.00

7. 91

Aaa

1994
1989
1994
1994
1973
1999
1994

7.65
8-3/8
7.70
8-1/2
8.00
'6-5/8
7-3/4

7.,65
8.,56
7,,70
8.,40
7.,50
7..65
7..80

A
Baa
A
Baa
Aaa
A
A

25.0
20.0
30.10
75.I 0
30.0
20.I 0

1989
1994
1994
1974
1989
1994

6-3/4
5-3/8
7-3/4
8-1/4
8.00
8-1/8

6,.75
5,.38
7..73
8,.25
8,.08
8,.05

Ba
Aa
N.R.
A
A

19.8

1994

5-1/2

5..50

.

Ba

'

.

<>
=

T A B L E 6:

L a r g e L o n g - t e r m P u b l i c S e c u r i t y I s s u e s for New C a p i t a l
( O t h e r t h a n U.S. T r e a s u r y ) 1

J u l y 1 t h r o u g h J u l y 2 8 . 1969.
AMOUNT
\

ISSUER

TYPE

2

(MILLIONS
OF

COUPON
RATI; OR
MATURITY

DOLLARS)

NI:I L : T E R I:ST COST

OFFERING
YIELD

MOODY':.
- R A T INC

S t a t e & l o c a l Government
L o u i s i a n a S t a t e Bd. Comm.
Kentucky, S t a t e of
F t . Wayne Comm. Sch. B l d g .
Corp., Ind.
A l e x a n d r i a , Va.
Tallahassee, Fla.
Allegheny Co., Pa.
Alaska
P h i l a d e l p h i a , Penna.
P h i l a d e l p h i a , Penna.
New York C i t y
N . J . Turnpike Auth.
Oklahoma
Rass-West View Sch. Auth.
D a l l a s C o . , Texas
Hempstead S.D. # 1 , N. Y.
B o s t o n , Mass.
C o n n e c t i c u t , S t a t e of
N. Y. S t a t e Housing F i n a n c e
Agency
Boulder V a l l e y S/D, Colo.




G.O.
G.O.

20.0

15.0

1970-84
1970-95

5.59
5.54

5.20-5.50
5.00-5.65

A-l
Aa

Rev.
20.8
Bonds
11.3
Rev.
12.0
G.O.
34.5
G.O.
10.5
G.O.
\
38.0
22.6
G.O.
G.O.
146.3
Rev.
40.0
G.O.
30.3
Rev.
10.0
Bonds
25.0
G.O.
10,7
Var; p u r . I n s . 1 5 . 0
G. O.
60.0

1973-92
1970-86
1970-94
1970-99
1979
1970-99
1970-94
1971-90
2008
1972-91
1970^91
1972-87
1970-89
1970-99
1970-89

5.68
5.58
5.79
5-3/4
5;69
6 ; 43
6.35
6;16
5*92
5.48
5,45
5.84
6:20
5.71

5.10-5.80
5.10-5.5Q
5.10-5;95
5.00-5.75
5.50
5.60-6:30
5;60-6;50
5.70-6.03
5.92
5.00-5.50
5.20-6.00
5.00-5.45
5.15-5:80
5.40-6.10
5.00-5.70

Aaa
A
A
A-l
Baa
Baa-1
Baa-1
Baa-1
N.R.
Aa
A
Aa
A-l
Baa
Aa

80.0

1970-99
1980

6:04
5.72

5.25-6.00
5.00-5.60

A
Aa

Rev.
G.O.

1010

T A B L E 6: Large Long term Public Security Issues for New Capital (contiiim d)
(Oilier than U.S. Treasury) 1

J u l y 1 t h r o u g h J u l y 2 8 , 1969
COUPON
RATE OR
i I)|-FHRMOODY'S
NET INTER- I
i ;;(•
RATING
EST COST J Y1LLD

AMOUNT
(MILLIONS
TYPE '

OF
DOLLARS)

O t h e r 3_/
"Federal Land Bank
Quebec H y d r o - E l e c . Comm.
F e d e r a l Home Loan Bank
Nova S c o t i a

Bonds
Debs.
Bonds
S.F. debs.

270;0
50.0
400.0
35.0

1971
1999
1971
1994

8.15
8-3/4

8.15
8;75

8-5/8

8.70

8.00

8.00

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 over
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 y 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 , G.O. d e n o t e s g e m r a [ o b i i gat i on;
R e v . - U t . , revenue 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 only by income from quas i - ut i l i t i us ; R e v . - S . T . ,
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 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 ;\ nd
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 .




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

As of J u l y 2 8 . 1969.

ISSUER

.

TYPE

AMOUNT
(MILLIONS
OF .
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
~ Association
American E l e c t r i c Power Co.
*National Health Enterprises
Inc.
Rheingold Corporation
Vernitron Corporation
B e l l T e l e p h o n e Company of
Pennsylvania
J . J . Newberry Company
* N a t u r a l Gas P i p e l i n e Co.
of America
* W i l l Ross I n c .
*U. S. Ban C o r p o r a t i o n
M e t r o p o l i t a n E d i s o n Co.
Diamond Shamrock Corp.
F l o r i d a Power C o r p o r a t i o n
^Southeast Bancorporation,
Inc.
Gas S e r v i c e Company
*Evans P r o d u c t s Company
*Ampex C o r p o r a t i o n
*Hublein Inc.
P h i l a d e l p h i a E l e c t r i c Co.
P a c i f i c Northwest B e l l
T e l e p h o n e Company
*Long I s l a n d L i g h t i n g Co.
* G e o r g i a Power Company




July
July

28
28

15.0
20.0
15.0

July
July
July

28
28 .
28

100.0
20.0

July
July

29
29

Bonds
Com. s t k .

78.8
92.7

Debs.
Conv. debs
Conv. debs,
Debs.
Conv. debs,
Bonds
Conv. s u b . d e b s .
Conv. flub. d e b s .
1 s t mtg.
S. F . d e b s .
1 s t mtg.
Conv. s u b . d e b s .
1st mtg.
Debs.
Conv. s u b . d e b s .
Debs.
Bonds
Debs.
Bonds
Bonds

50.0
20.0
25.0
28.0
45.0
35.0
15.7
15.0
60.0
60.0
50.0
50-80.0
75.0
30.0
65.0

-

J u l y 30
J u l y 31
August 5
August 5
August 6
August 7
August
August
August
August
August
August

8(rts
12
12
12
13
13

August 20
August 25
August 26

TABLE 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 & l o c a l Government
Chicago, I l l i n o i s
Ohio, S t a t e of
New York S t a t e D o r m i t o r y
Auth.
Newark, N. J .
S e a t t l e , Wash.
* P e n n a . , S t a t e of
G e o r g i a Highway Auth.
* B a l t i m o r e C o . , Md.
San F r a n c i s c o Bay Area Rap.
Transit Dist., Calif.
T e x a s , S t a t e of
L o u i s i a n a S t . Bond Comm.
*Los Angeles D e p t . of Wtr.
& Pwr., C a l i f .
*Kalamazoo School D i s t . ,
Michigan
New J e r s e y , S t a t e of

G.O.
Bonds

25; 5
65.0.

J u l y 29
J u l y 29

Bonds
G.O.
G.O.

10.7
20.5
25.0

J u l y 29
J u l y 29
J u l y 29

100.0
18.5
20.0

Aug. 12
Aug. 5
Aug. 5

G.O.
Rev.
U.P.Bonds
G.O.
G.O.
G.O.

Aug. 6
Aug. 7
Aug. 12

Rev.

18.0

Aug. 13

S c h . B l d g . Bonds
G.O.

12.3
75.0

Aug. 18
Aug. 19

Bonds

90.0

J u l y 29

Other
*Tennessee Valley Auth.

*
1

i

72.0
14.0
20.0

.

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 .
2
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 .
P o s t p o n e d t h i s week: I l l i n o i s B l d g . Auth. 4 8 . 1 , no b i d d r e c e i v e d .




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

STOCK PRICES 1
DATE

S&P
500

D . J . - IND.

TRADING1 VOLUME 2
AMEX4

NYSE

AMEX

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

24.52(12/29)
13.78(1/27)

60,7(8/14)
27.4(1/6)

33.5(10/27)
8.3(1/6)

1968 - Higtf:
Low

108.37(11/29)985.21(12/3)
87.72(375) 825.13(3/21)

33.25(12/20)
22.00(3/22)

82.1(6/7)
34.0(2/23)

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

1969 - High
Low

105.94(5/16) 968.85(5/14)
91.96(7/25) 818.06(7/25)

32.91(1/3)
26,16(7/25)

1967 - H i g h
Low

1969 - J u n e 20
27
July 3
11
18
25 !
'
1
2

96.67
97.33
99.61
95.77
94.95
91.96

876.16
869.76
886.12
852.25
853.09
818.06

27.99
27.75
28.64
27.43
27.10
26.16

•
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 .

!

72.7(5/2)
32.8(4/4)

56.5
54.2
40.0
51.8
48.9
41.0

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

22.7
22.3
16.9
20.3
19.0
13.5

Highs and lows a r 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 ) . I n t h e p a s t ,
t r a d i n g was n o r m a l l y c o n d u c t e d 5 days a week f o r 5 1 / 2 h o u r s p e r d a y , or
27 1/2 h o u r s p e r week. From August 8 t h r o u g h August 20, 1967, d a i l y t r a d i n g was r e d u c e d t o 4 h o u r s p e r day or 20 h o u r s p e r week. A 20-hour week
was a l s o i n e f f e c t from J a n u a r y 22 t h r o u g h March 1, 1968. From June 30
t h r o u g h December 31, 1968, t h e exchanges were open 5 1/2 h o u r s f o r 4 days
a week or 22 h o u r s . B e g i n n i n g J a n u a r y 3 , 1969, t h e exchanges have been
open 4 h o u r s each d a y , 20 h o u r s p e r week. NYSE i s New York S t o c k Exchange; •
- AMEX i s American S t o c k Exchange.

3

1941-43 = 10.

4

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 .




15

STOCK PRICES AND TRADING VOLUME
"AMEX
37

!

D.J.
(Ind)

Weekly
:

:

:

i

r~

S&P
(500)

1300

AMEX PRICE LEVEL INDEX /

130

1260

STOCK PRICES

126

1220

122

1180

M

118

1140

114

1100

110

1060

106

1020

102

980

S&P's 5 0 0

98

940

94

900

9<

860

8

820

,

7

740
f __

8

780

74

r—

AMEX TRADING VOLUME (TOTAL FOR WEEK)
40

IIIIIIIJ! I.
20

0

1

I

NYSE TRADING VOLUME (TOTAL FOR WEEK)

80

60

4 A!#*
*

H'-1"!':':! •• -,i: S

ill ilill'dliililljjllilulUjiiijW
1965

40

$;? v $lo§;:SU:\:S,
.

20
0

1966




1967

1968

.

TABLE 9: Security Credit

END OF PERIOD
Outstanding:

1968 -May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - J a n . r y
Feb.""
Mar.
Apr. '
May E /

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

• /

6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,930
5,750
5,590
5,570
5,670

2,360
2,410
2,420
2,490
2,520
2,560
2,630
2,710
2,750
2,810
2,780
2,760
2,770

9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,900
8,680
8,560
8,370
8,330
8,440

8,268
8,728
8,861
8,489
8,724
8,859
9,029
9,970
9,042
9,148
8,318
8,044
8,474

3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,647
3,294
3,077
3,084

5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,445
5,501
5,024
4,967
5,390

10
50
10
70
30
40
70
80
40
60
-30
-20
10

220
100
-180
30
-40
100
20
80
-220
-120
-190
-40
110

567
460 :
133
-371
235
135
170
761
-928
-51
-830
-274
430

85
229
-24
-285
142
281
12
298
-120
50
-351
-217
7

482
231
156
-86
85
-138
158
563
-628
-9
-477
-57
423

Change i n
Outstanding*

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - J a n .
Feb.
Mar.
Apr.
May £ /
1
2
3

210
50
-190,
-40
-70
-140
-50

^

- -

-270
-180
-160
-20
100

-

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. governments, 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 than b r o k e r s and 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. governments
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 e t f 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 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 t h e New York
Stock 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 .




\

TABLE 10: Savings Flows at Nonbank Depositary Intermediaries

($ m i l l i o n s )

DATE

\
TOTAL ,
SAVINGS ,& LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
DEPOSITS
NET
SHARE CAPITAL
NET
REGULAR DEPOSITS 3
, ANNUAL,
NEW
ANNUAL
NEW
ANNUAL .
GROWTH '
MONEY2
GROWTH
MONEY2 \NET
NET
GROWTH
NET
1
1
RATE 1
FLOW
FLOW
RATE
RATE
FLOW

NET
NW
E
MONEY 2

Not S e a s o n a l l y Ad l u s t e d
2,557
5,082
4,186

1966
1967
1968

-75
363
453

1968 - Apr.
May
June
1969 - Apr ;
May r /
J u n e p./

4.9
9.3
7.0

227
2,376
1,143

3,584
10,687
7,396 .

-197
308
325

-189
300
-111

-516
641
1,250

-552
6,129
2,676

6,141
15,769
11,582

-324
722
158

-369
1,120
2,075

-543
602
n.a.

-713
949
1,575

-294
757
1,622

-325
227

-

3.2
9.4
5.9

-

3.8
9.4
6.3

-325
8,505
,3,819
'

-

-513
1,022
47
-868
829

Seasonally Adlusted

1969 - J a n .
Feb.
Mar.'
Apr. r /
' May r /
June £ /

220
384
382
160
357
179

4.1
7.2
7.1
3.0
6.6
3.3

-

523
582
894
190
498
382

4.8
5.3
8.1
1.7
4.5
3.4

•

-

743
966
1,276
350
855
561

4.6
5.9
7.8
2.1
5.2
3,4

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-is 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 sinall 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.




- -

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions, of dollars

2000
1600
TOTAL

1200

400

I 1 I!IIIIII1 1 !

400

1200
SAVINGS & LOANS

800
400

400
800
MUTUAL SAVINGS BANKS

1965

1966




1967

I i I it i i i i i i I i i M II I M I I
1968
1969

400

400

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
, Dec.
1969 - J a n .
Feb.
Mar.
Apr.
May
J u n e jj/

V-

1

OUTSTANDING COMMITMENTS
|
NET CHANGE
ALL
ALL
MUTUAL
|
SAVINGS
TOTAL
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 , Seas o n a l l y A d j u s t e d ) JL/
8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7
9.9
10.1
10.3
10.5
10.3

1

6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

-.13
-.04
.24
.16
.14
.35
.27
-.01

-.16
-.10
.16

6.7
6.9
7.0
7.2
7.1
7.0

3.2
3.2
3.3
3.3
3.2

.15
.25
.17
.19
-.19

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

.08
.22
.09
.18
-.10
-.03

—

.10
.22
.10
.08

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 . Net changes a r e d e r i v e d 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 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-not 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 . M u t u a l S a v i n g s Banks and t o t a l d a t a
i n c l u d e b u i l d i n g l o a n s b e g i n n i n g August 1967.




.02
.06
.08
.16
.04
.13
.17
-.10
.07
.03
.08
.01
-.09

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Billions of dollars

Monthly

TOTAL

N.Y.MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

22
TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS 5
=
INSURANCE
SAVINGS
LOAN
COMPANIES
BANKS
ASSOC,

COMMERCIAL
BANKS

FNMA-GNMA

1965 - I
II
III
IV :

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

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

823
1,749
1,805
1,322

965
946
1,072
1,078

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

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

1966 - I
II
III
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

975
1,656
1,300
774

753
513
739
715

1,683
1,651
373
54

1,219
1,277
1,056
1,044

1967 - I
II
III
IV

2,617
4,868
6,285
6,246

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

.770
786
839
758

486
2,119
2,595
2,320

860
657
521
869

350
106
579
762

1968 - A p r .
May
June
July
Aug.
Sept.
Oct.
Nov.
• Dec.

1,978
2,238
2,125
1,851
1,982
2,000
2,314
2,088
2,483

1,732
2,003
1,905
1,699
1,841
1,892
2,153
1,943
2,311

616
616
616
533
533
746
807
706
404

160
203
219
248
233
221
313
310
340

879
957
901
718
874
810
845
732
903

88
216
169
200
201
115
188
195
664

246
235
220
152
141
108
161
145
172

1969 - J a n .
Feb.
Mar.
Apr.
May
June

1,750
1,770
1,945
2,202
2,165
n.a.

1,549
1,549
1,740
2,011
1,980
n.a.

500
500
500
600
600

293
228
198
204
233

622
671
917
1,026
r/988
n.a.

134
150
125
181
159

201
221
205
191
185
222

l

-

2

-52
-66
66
356
.

795
551
508
469

i
M o n t h l y d a t a f o r c o m m e r c i a l b a n k s 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 .
Other data
d e r i v e d f r o m 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 A s s n .
of M u t u a l S a v i n g s B a n k s , Federal Home Loan Bank Board, I n s t i t u t e of Life I n s u r a n c e
and, t h r o u g h August 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and t h e r e after by FNMA and the Government N a t i o n a l M o r t g a g e A s s o c i a t i o n .
Data f o r m u t u a l
savings b a n k s and f o r Life I n s u r a n c e c o m p a n i e s may d i f f e r somewhat f r o m t h o s e
d e r i v e d f r o m 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 m i n o r 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 m o n t h l y 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.
FRMA i n c l u d e s GNMA a f t e r S e p t e m b e r 1 , 1 9 6 8 .




NET CHANGE IN MORTGAGE HOLDINGS

Billions of dollars

Monthly

i"i. I

1

I 3.0

2.5 ,

TOTAL, INCl. FNMA - GNMA

2.0

1.5

1.0

FINANQIAL INSTITUTIONS

1966




1967

1969

TABLE 13: Net Increases" in Mnrtoaop Debt Outstanding

1

B i l l i o n s of d o l l a r s , SAAR 2

QUARTER

TOTAL

RESIDENTIAL2

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

1965 - I
II
III
IV

24.9
25.2
25.8
26.6

18.6
18.5
19.3
19.6 ,

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

14.7
12.1
8.3
7.2

4.3
3.5
2.6
2.3

1967 - I
II
.
Ill
IV

15.5
20.4
26.3
28.6

9.9
13.7
19.1
20.9

6.8
10.5
15.3
16.5

26.9
1968 - I
/
I I - 25.8
I I I 25.8
31.3
IV
1969 - I
30.2

18.2
17.9
17.7
21.5
21.1

1

2

.

MULTI-AND
COMMERCIAL

FARM

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

' . 6.9
6.5
5.4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

3.0
3.3
3.8
4.4

.3.8
4.8
4.8
5.1

7.3
8.1
8.8
. 8.8

1.8
1.9
2.4
2.6

15.4
14.<8
14.1
17.0

2.8
3.1
3.5
4.5

6.2
5.7
6.4
8.1

9.4
8.7
10.2
11.8

2.4
2.3 .
1.8
1.7

18.0

3.2

7.1

10.6

2.0

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 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 ,
N a t i o n a l Asscrcrjation 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 n o n - f a r m mortgage 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 s , where r e q u i r e d , e s t i m a t e d by F e d e r a l
Some Loan Bank Board and t h e F e d e r a l R e s e r v e .
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
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

24
TOTAL
RESIDENTIAL

/\

I 1 - 4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED
1969 - Apr. 14
21
28
May

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 ( p e r c e n t )
ACCEPTED
9061-YEARN ' 9 0 1-YEAR 1
TOTAL
6TOTAL
DAY MONTH & OVER
DAY
& OVER
OFFERED
MONTH
144.7
128.1
157.7

101.1
100.9
84.1

7.9

4.6
4.8

52.3
59.8
58.7

40.9
36.5
20.5

8.10
8.05
7.94

8.10
8.05
7.94

7.98
7.93
r/7.85\

r/7.89
84(4
58.2
7.89
r/7.82
19.5
6.7
r/7.88
55.9
r/7.80
85.0
19.7
7.87
9.3
13.8
r/7.87
51.0
18.5 r / 7 . 8 6
83.3
r/7.80
9 6 . 1 12.3
67.8
16.0 jg/7.88
r/7.90
r/7.83
65.5
r/7.93
103.0 15.3
22.1 3 / 7 . 9 1
r/7.85
r/8.00
100.2 2 1 . 3
57.7
21.2 r / 7 . 9 8
r/7.91
66.8
r/8.25
100.5 15.4
18.3 t;/8.30
8.14
8.7
124.3
92.5
23.1 r / 8 . 3 6
8.40
8.26
121.5 22.7
84.0
14.8 r / 8 . 3 8
r/8.41
r/8.26
85.1
121.0 2 4 . 1
11.7 r / 8 . 4 2
8.47
r/8.31
11.5 r / 8 . 3 9
129.7 17.4 100.9
8.40
r/8.29
8.31
93.5
18.3 "J 8 . 30
- 8.19
130.9 1 9 . 1
(130.01 1 1 Note: Under t h e F M a u c t i o n system, approved s e l l e r s of GovernmentN A
u n d e r w r i t t e n mortgages b i d f o r F M forward purchase commitments, subN A
j e c t t o an o v e r - a l l d o l l a r l i m i t announced by F M in advance. B i d s
N A
a c c e p t ed by FNMA a r e f o r d e l i v e r y a t t h e s e l l e r ' s o p t i o n , and a t any,
time w i t h i n t h e s p e c i f i e d p e r i o d . B i d s on proposed homes r e l a t e t o
c o n s t r u c t i o n n o t y e t s t a r t e d on which mortgages may be d e l i v e r e d only
a f t e r completion and occupancy.

5
12
19
26
2
9
16
23
30
July 7
14
21

170.8
210.4
236.2
263.0
304.6
291.6
409.7
304.1
245.6
195.5
177.1
250.9

jmj-

For "proposed c o n s t r u c t i o n " of new homes o n l y .
Average secondary market y i e l d a f t e r allowance f o r commitment f e e and
r e q u i r e d purchase and h o l d i n g of F M s t o c k , assuming prepayment of
N A
15 y e a r s f o r 30-year Government-underwritten mortgages. Y i e l d s shown
a r e g r o s s , b e f o r e deduction of 50 b a s i s p o i n t s f e e paid by i n v e s t o r s
to s e r v i c e r s . '
3

F M announced l i m i t of a c c e p t e d b i d s f o r n e x t w eek's a u c t i o n .
N A




FNMA WEEKLY "AUCTION" RESULTS
lillions

120
AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100
80
1 YEAR
AND OVER

60
40
20

3 MONTHS

0
Per cent
8.6

"IMPLICIT YIELD
6-MONTH COMMITMENTS

8.0

7.4

_L

L

6.8
$

lions

400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED

0
JUNE

1968




1969

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits

STARTS
- DATE

1968
.

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

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1,364
1,365
1,531
1,518
1,592
1,570
1,733
1,509

140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

838
790
904
867
944
965
905
922

. 526
575
627
651
648
605
828
585

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

20.5
19.8
18.8
20.9
18.6
21.4
17.5
16.3

5.5
5.0
4.9
4.8
4.6
5.3
4.2
4.4

114.9
113.1
116.2
110.9
111.1
114.0
105.4
75.7

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,280
1,281
1,289
1,290
1,393
1,378
. 1,425
1,463

1969 - J a n .
1 , 8 7 8 1,066
812
101.5
14.2 3.8
83.5
1,403
Feb.
1,686
975
711
90.0
13.2 3 . 5
73.3
1,477
8-1.8
1,584
Mar.
756
131.9
18.9 3.9
1,421
109.1
1,563
?97
Apr.
766
159.0
23.0 4 . 4
131.6
1,502
May £ / 1,505
155.2
21.1 4.3
880
625
129.8
i,32s
lAt.n
J u n e p / 1.446
786
?1 , 5
660
118.9—
1,326
1 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 c l u d e 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 .
2 B u i l d i n g 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 10,000 a r e a s
i d e n t i f i e d as 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 12,000 and b e g i n n i n g J a n u a r y 1967 1 3 , 0 0 0 , 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 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, as 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 .




!
4
J

f
'i
|
$

;

PRIVATE HOUSING STARTS AND PERMITS
Monthly,annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

12

BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

40

.

GOVERNMENT UNDERWRITTEN

1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 1 - 6 6 - Low
1966 - High
1967 - High
Low
1968 - High
Low

5.63
5.35
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

1968 - D e c .

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

7.50

1969 - J a n .
. Feb.
Mar.
Apr.
May
June

,

- -

7.99
8.05
. 8.06
8.06
8.35

CONVENTIONAL
MORTGAGES
3
6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75
7.40
7.55,
7.60
7.65
7.75
7.75
8.00

SPREAD BETWEEN YIELDS
ON C0NV. &
. FHA MORTGAGES
.47
.15
.23
.25
.30
.11
-.12
.02
-.27
io

-.39
-.40
-.31
-.31
-.35

;

1

j

NEW
Aaa-CORPORATE
BONDS
4
4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.16
1.28
.27
1.20

6.79
6.92
6.91
7.37
7.17
7.22
7.58

.71

.26

1.08
.68

.89
.84
.77

1 . 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 a r e
much 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 , b o n d s pay i n t e r e s t s e m i a n n u a l l y ; m o r t g a g e s , m o n t h l y . M o r t g a g e 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 b e 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 i m m e d i a t e 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, 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 .
Yields
computed by FHA, a s s u m i n g p r e p a y m e n t 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 w h i c h t h e y can be
c o m p a r e d , t h e movement of t h e two m o r t g a g e y i e l d s e r i e s h a s b e e n 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 ( r o u n d e d ) on c o n v 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 cities.
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 as. 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 c h a n g e i n t h e s e r i e s .
4
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:
CONVENTIONAL

A a a CORPORATE BONDS:
NEW ISSUES

/ V ^ X V ^

Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis points

—

200

100

1962




1964,

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

1

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

LOAN/
PRICE LOAN RATIO AMT.
(PER ($000)
CENT)

6,. 6 9
6.. 8 8
7., 0 4
7,,10
7,,10
7,,09
7.,07
7.,09

0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89

6.84
7.03
7.17
7.24
7.24
7.23
7.21
7.23

25.0
25.4
25.5
25.5
25.5
25.6
25.4
25.9

73.2;
74.4
73.7
73.6
74.2
74.5
74.1
74.0

21,. 7
22,, 3
22.,2
22i ,6
22., 1
22. 7
22. 5
24. 7

6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.87
0.86
0.83
0.85
0.82
0.84
0.82
0.85

6.95
7.12
7.23
7.26
7.25
7.22
7.21
7.23

22.5
22.6
22.5
22.7
22.6
22.5
22.7
23.3

73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.3
18.2
18.5
18.6
18.3
18.3
18.9
20.4

7. 16
7. 26
7.32
7.47
7.,50

' 0.84
0.81
0.93
0.96
0.88

7.30
7.39
7.47
7.62
7.64

25.6
25.6
25.8
25.4
25.8

73.6
73.3
73.8
72.6
73.0

24. 1
23. 5
24. 0
24. ,8
25. 2

7.18
7.28
7.35
7.46
7.54

0.86
0.86
0.84
0.85
0.83

7.32
7.42
7.49
7.60
7.67

22.8
22.9
23.0
23.0
22.8

72.6
72.8
72.7
71.8
72.0

20.0
19.6
20.2
19.9
19.6

'EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PR1CF.
(PER
RATE
TIVE
RITY RATIO
CENT) ' RATE (YEARS) (PER
(PER
CENT)
CENT)
2
3

LOAN
AMT.
($000)

1968
May
June
"July
Aug.
Sept.
Oct;
Nov.
Dec.
1969
Jan.
Feb.
Mar..
Apr.
May £ /

l Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
.
Corporation. Data are weighted averages based on. probability sample survey of charac^^teri sties of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exelude-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.
- .




|
|
|
|
i
i
f

CONVENTIONAL MORTGAGE TERMS
Monthly

'

Years

MATURITY
NEW

25
EXISTING

20

80

LOAN/PRICE RATIO

NEW

EXISTING

70

65
1963




1965

1967

1969
* CHANGE IN SERIES

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