Full text of H.16 Capital Market Developments : June 18, 1973
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3 5 > 6 * / H.re U3RARV JVM 19 ^T3 June 18, 197% P r e p a r e d by t h e ~ ' C A P I T A L M A R K E T S SE C T ION in c o n j u n c t i o n w i t h t h e M O R T G A G E , A G R I C U L T U R A L , and CONSUMER F I N A N C E S E C T I O N 1 CAPITAL MARKET DEVELOPMENTS DIVISION O F R E S E A R C H AND S T A T I S T I C S BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTEM Washington, D C. 20551 INDEX DEVELOPMENTS IN T H E CORPORATE AND MUNICIPAL BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME STOCK MARKET MORTGAGE MARKET SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT A V A I L A B L E DATA DO NOT EXIST 1 Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE BOND M A R K E T YIELDS WEEK E N D I N G 1973 - Apr. May June 6 13 20 27 NEW ISSUE 1 A a a UTILITY VOLUME R E C E N T L Y <! OFFERED A a a UTILITY 7.51 — — 7.45 PER CENT S O L D BY E N D OF WEEK NEW ISSUES 4 IN S Y N D I C A T E ( $ MILLIONS) 139 83 70 492 90 100 100 98 4 0 0 45 205 39 154 139 93 97 72 96 61 0 44 6 433 260 260 64 100 73 154 0 70e 7.45 7.61 7.42 7.45 7. 50 7.55 1 8 15 7.55 7.63r 7.59p 7. 60r 7.59 7.63p -- 3 7.50 7.47 7.52 7.42 4 11 18 25 7.40 GROSS OFFERINGS ( $ MILLIONS) MUNICIPAL BOND MARKET YIELDS WEEK E N D I N G MOODY'S NEW ISSUE Aaa VOLUME BOND BUYER 20-BQND INDEX 6 13 20 27 5.05 4.85 4.90 5.00 5.22 5.07 5.17 5.14 May 4 11 18 25 4.85 4.85 4.85 4.95 5.10 5.10 5.14 5.20 June 1 8 5.00 5.00 5.05 1973 - Apr. 15 . 5. 22 5.13 5.13 ' 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT S O L D BY E N D O F WEEK NEW I S S U E S 4 IN S Y N D I C A T E ( $ MILLIONS) .304 657 286 286 90 94 67 77 55 56 105 76 354 334 540 434 88 64 83 81 72 162 126 143. 373 239 252 81 93 65 101 54 130 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS 1 NEW ISSUE Aaa UTILITY DATE 1971 1972 1973 1973 - - - - RECENTLY OFFERED Aaa UTILITY 2 3 MOODY'S SEASONED CORPORATE Aaa 4 U.S. GOVT. 20-YEAR CONSTANT MATURITY 5 BOND BUYER 20-80ND INDEX High 8 . 2 6 (7/30) 8 . 2 3 ( 1 / 1 ) 7 . 7 1 (8/12) 6 . 5 1 ( 6 / 1 8 ) 6.23 ( 6 / 2 3 ) Low 7.02 (2/5) 7.17 (12/31) 7.06 ( 2 / 1 2 ) 5.69 (3/23) 4 . 9 7 ( 1 0 / 2 1 ) High 7 . 6 0 (4/21) 7 . 4 6 (5/12) 7 . 3 6 ( 4 / 2 8 ) 6.19 (4/14) 5 . 5 4 (4/13) Low 6.99 ( 1 1 / 2 4 ) 7.17 (1/7) 7.05 (12/8) 5 . 7 4 (11/17) 4 . 9 6 ( 1 0 / 2 1 ) High 7 . 6 3 ( 6 / 8 ) 7 . 6 3 (6/15) 7.37 (6/15) 7.05 (6/8) 5.35 ( 3 / 2 2 ) Low 7.29 7.28 (1/5) 7 . 1 1 (1/5) 6.42 (1/5) 5 . 0 3 ( 1 / 1 2 ) Apr. 6 13 ( 1 / 2 1 ) 7 . 5 1 —— 20 May 7.27 6.87 5 . 2 2 7.47 7.25 6 . 8 4 5.07 7.52 7.25 6 . 8 4 5.17 27 7.45 7.42 7.27 6.88 5 . 1 4 4 7 . 4 0 7.42 7 . 2 6 6.94 5 . 1 0 7 . 4 5 7 . 2 6 6.98 5 . 1 0 7 . 5 0 7.29 6 . 9 8 5 . 1 4 7.03 5.20 11 18 June 7 . 5 0 7.45 25 7.61 7 . 5 5 7.32 1 7.55 7 . 6 0 7.35 7.05 5.22 8 7 . 6 3 r 7 . 5 9 7 . 3 6 7.05 7.37p 7.02p 5 . 1 3 5.13 15 7 . 5 9 p 7.63p NOTES: 1 Fedflull Beterve series of implied yield o n newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U S. Treasury data. 5 Thursday figures. The average rating of the 2 0 bonds used in this index falls midway between the four t o p groups as classified by Moody's Investors Service. Weekly Bond Buyer data. ^ H.16 „ Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS OF DOLLARS PERIOD GROSS PROCEEDS 1i CORPORATE 1 1972 STATE AND LOCAL 1 1972 1. . 2 1971 1971 1973 3,205 3,369 3,229 3,115 3,000 6,075 1,978 1,481 2,353 1,776 2,005 2,239 2,732 1,851 2,258 April May 3,275 3,598 4,341 4,042 3,300 4,375 1,772 1,989 2,017 2,270 1,891 2,167 2,013 July August September 3,582 2,893 2,720 4,147 2,532 3,768 1,805 1,966 1,726 1,989 1,903 2,098 October November December 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2,264 2,068 9,803 11,214 9,195 10,564 12,190. 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 18,902 24,962 1973 January February March 01 02 03 04 1st Half 3 Qtrs. Year 2,327 1,962 3,935 8,224 5,812 • NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN M I L L I O N S O F D O L L A R S G R O S S PROCEEDS BY TYPE OF I S S U E PERIOD 1972 - I I III IV G R O S S P R O C E E D S BY T Y P E O F ISSUER BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK 1 MEMO I S S U E S INCLUDED PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS F O R E I G N (CONVERTIBLE 11,214 9,195 10,564 4,634 4,192 4,158 2,781 1,867 3,147 3,798 3,136 3,258 245 57 245 449 836 428 2,109 1,629 1,398 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 1973 - I 8,224 2,944 1,407 3,970 n.a. 112 887 2,427 1,229 3,681 1972 - Mar. 3,229 1,677 577 976 3 233 604 740 227 1,658 Apr. May June 3,275 3,598 4,341 1,622 1,676 1,336 789 744 1,218 864 1,148 1,786 15 100 130 92 226 131 581, 761 767 1,219 738 1,538 178 391 800 1,297 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1,118 948 •1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1,454 1,034 770 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 1973 - J a n . Feb. Mar. 2,327 1,962 3,935 989 641 1,314 287 316 804 1,050 1,104 1,816 14 27 89 81 28 3 176 213 498 900 596 931 33 174 1,022 1,218 980 1,483 NOTES: 1 MANUFACTURING Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon available information. Table 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 June 1. 1973 through June 15 r 1973 TYPE AMOUNT (MILLIONS OF DOLLARS) COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE L o u i s i a n a Pwr. & L t . G e o r g i a Pwr. Commonwealth Edison Potomac E l e c t . Pwr. B a r n e t t Banks of F l a . , I n c . F l a . Pwr. C o n s o l i d a t e d N a t u r a l Gas I l l i n o i s Pwr. Consumers Power Co. Atlantic City Elect. Duke Pwr. Gen ' 1 . T e l . of Wise 1 s t mtge 1 s t mtge 1 s t mtge Com s t k Com s t k Com s t k 1 s t mtge 1 s t mtge Pref stk 1 s t mtge 1 s t mtge 1 s t mtge NOTES: • Rights offering. 1 Include* corporate and other security offerings of $15 million and over. 45.0 115.0 100.0 60.0 29.5 48.9 50.0 50.0 75.2 30.0 100.0 - 25.0 2003 2003 2003 8.00 7 7/8 7 5/8 7.88 7.85 7.60 1998 2003 7 3/4 7 5/8 7.50 7 3/4 7 3/4 7 3.4 7.67 7.65 . 7.65 7.69 7.70 7.77 2003 2003 2003 A A Aaa Aa Aa Aa Aa A Table 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER June 1, T H A N 1973 2 ISSUER TYPE U.S. T R E A S U R Y through AMOUNT (MILLIONS OF DOLLARS) June 15, 1 1973 MATURITY COUPON RATE MOODY'S RATING OFFERING YIELD STATE AND LOCAL Washington, Georgia New State Highway York St. of Auth Hous, Fin Agcy. Aa G.O. 20.0 1974-1998 4.99 4.00-5.25 Ren-rev 19.0 1974-1998 5.13 4.10-5.50 Aa 168.8 1974-2003 5.76 4.20-5.90 A 1979-1998 — 4.35-5.20 Aa G.O. Los Angeles DWAP Rev 23.6 Los Angeles DWAP Rev 23.5 Washington Ref 41.5 1985-2009 4.70-5.60 Ad. G.O. 40.0 1974-1993 4.79 4.00-5.35 A-l G.O. 19.8 1974-2003 4.95 4.00-5.20 Aa G.O. 40.0 1974-1998 4.91 4.05-5.60 A-l S e a t t l e , L o u i s i a n a , State New County, C a s t l e West of Del. Virginia 2013 5.29 A& — NOTES: 1 Includes state and local security offerings of $10 million and over. 2 In case of State and local government securities, G O denotes general obligation; Rev. Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev. S T., revenue bonds secured by revenue from specific taxes only; Rev -Rent., revenue bonds secured solely by lease payments. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. ^ H.16 T a b l e 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of June 15, 1973 ISSUER Ohio Edison C a r o l i n a Pwr. & L t . Investors Realty Tr. R e a l t y Refund T r u s t Mountain S t a t e s T e l . P a c i f i c Pwr. & L t . Arkansas Pwr. & L t . Appalachian Pwr. P a c i f i c Gas & E l e c t . I n s t r u m e n t Systems Corp. Delmarva Pwr. & L t . Duquesne L i g h t Michigan G e n e r a l Alabama F i n a n c i a l Group, I n c . P u b l i c Svc. E l e c t . & Gas Michigan C o n s o l i d a t e d Gas A t l a n t a Gas L i g h t N o r t h e r n I l l i n o i s Gas N or t h er n I l l i n o i s Gas Brooklyn Union Gas Penn. E l e c t . ^ P o r t l a n d Gas & E l e c t . *Wisc. P u b l i c S e r v i c e *West Texas U t i l i t i e s TYPE Com s t k . Pr e f s t k Bonds Conv debs Bonds Com s t k 1 s t mtge 1 s t mtge Bonds Sub debs 1 s t mtge 1 s t mtge Bonds Debs Com s t k Bonds Bonds Bonds Com s t k Com s t k ( r t s ) Bonds Pr e f s t k Com s t k 1 s t mtge AMOUNT (IN MILLIONS OF DOLLARS) 64.5 50.0 15.0 20.0 250.0 43.8 40.0 50.0 150.0 25.0 25.0 35.0 25.0 30.0 92.0 35.0 15.0 35.0 26.0 15.0 30.0 20.0 15.4 23.0 APPROXIMATE DATE OF OFFERING June June June June June June June June June June June June June June July July July July July July July July July July 19 19 19 19 20 20 21 25 26 26 27 28 28 10 10 10 11 11 12 12 17 18 18 NOTES: • Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.16 8 Table 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of June 15, 1973 TYPE ISSUER AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL H u n t s v i l l e , Ala. P o r t of New York and New J e r s e y Auth Delaware S a l t River P r o j e c t Agr. Imp. & Pwr Dist Washington Sub S a n i t a r y D i s t , H y a t t s v i l l e , Md. N.Y. C i t y Housing Dev. Corp. *Muscogee Co. S/D Ga. G r e a t e r Anchorage Area Bor, Alaska ' Md. Dept. of T r a n s . Dekalb Co. Sch. D i s t . Ga. ^Washington Pub Pwr Supply Sys. Culver C i t y Dev. Agy., C a l i f HUD Fremont, Neb *Rosebud C o . , Mont. *Allegheny C o . , Pa. San J o s e U n i f i e d S/D, C a l i f . Wash. Metro *New York C i t y «Iowa S t . Bd. of Regents H a r r i s C o . , Tex "Los Angeles DWAP C h a r l o t t e , N.C. G.O. Rev. G.O. Rev. Rev. Gen. Hous. Bonds G.O. G.O. G.O. G.O. Rev. Bonds Hous. Bond Rev. P o l l . Cont. Rev. G.O. G.O. Rev. G.O. Rev. G.O. Rev. G.O. 12 .3 100 . 0 40 . 0 75 . 0 June June June June 19 20 20 20 27.6 62..8 12,.5 10,.0 50,.0 53..7 150..0 16..6 264.,6 21. 0 20. 0 32. 4 13. 0 150. 0 325. 0 10. 0 16. 0 18. 0 22. 0 June June June June June June June June June June June June July July July July July Aug. Aug. 20 20 21 23 26 26 27 27 27 28 3 11 11 26 15 21 NOTES: 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 . STOCK PRICES AND VOLUME 1 STOCK PRICES DATE 3 NYSE INDEX 197 i - High Low * 57.76(4/18) 48.73(1/4) 1972 - High Low 1973 - High Low DJ INDUSTRIALS! 4 AMEX | 950.82(4/28) 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) 2 TRADING VOLUME NYSE NASDAQ | AMEX | NASDAQ 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 56.23(1/3) 889.30(1/3) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 54.22(5/21) 10:4(1/12) 5.1(6/8) 1051.70(1/11) 886.51(5/21) 26.70(1/8) 22.37(6/4) 136.18(1/12) 100.76(5/21) 20.4(1/12) 11.4(6/1) 4.8(1/12) 2.4(6/1) 8.9(12/30) 5.1(11/26) 6 13 20 27 58.23 59.65 59.59 56.86 931.07 959.36 963.20 922.17 24.06 24.18 24.07 23.57 113.27 115.22 114.15 108.40 12.4 15.2 13.2 14.5 2.9 3.1 2.7 3.2 6.5 6.4 5.8 6.2 May 4 11 18 25 58.77 57.43 54.96 56.96 953.87 927.98 895.17 930.84 23.67 23.53 22.81 22.76 110.89 109.10 102.89 105.17 14.5 13.7 15.1 18.0 3.0 2.5 3.0 4.0 6.2 5.5 6.4 6.8 June 1 8 15 54.86 56.29 55.36 893.96 920.00 888.55 22.49 22.57 22.56 102.30 103.72 102.26 11.4 13.3 12.9 2.4 2.5 2.3 5.2 5.2 5.1 1973 - A p r i l . NOTES: 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 2714 hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: January 3, 1969 July 7, 1969 January 2, 1970 3 12/31/65 = 50 4 Average dollar value of shares listed. Through Hours/Day Days/Week flours/Week July 3, 1969 December 31, 1969 May 1, 1970 4 4!6 5 5 5 5 20 22% 25 H.16 10 Table 8 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD B R O K E R S ON MARGIN STOCK 1 B R O K E R S ON 2 CONVERTIBLE BONDS 31 BANKS UNREGULATED NONMARGIN STOCK C R E D I T AT BANKS OTHER SECURITY CREDIT AT BANKS OUTSTANDING 1972 - Apr. 7,010 240 967 1,150 1,278 May 7,200 241 994 1,141 1,296 June 1973 244 7,510 955 1,644 1,274 July 7,660 248 979 1,772 1,285 Aug. 7,780 246 1,032 1,800 1,298 Sept. 7,800 248 1,008 1,871 1,255 Oct. 7,800 250. 943 1,875 1,351 Nov. 7,890 249 902 1,871 1,296 Dec. 7,900 254 865 1,896 1,528 - Jan. 7,700 249 865 1,940 1,484 Feb. 7,500 248 867 1,954 1,508 Mar. 7,200 244 879 1,917 1,566 Apr. 7,040 232 872 1,969 1,482 C H A N G E IN O U T S T A N D I N G 1972 - Apr. 390 18 39 503 -22 July 150 4 24 128 11 Aug. 120 -2 53 28 13 20 2 -24 71 -43 2 -65 4 90 -1 -41 -4 45 25 132 Oct. Nov. Dec. 1973 -16 -9 3 Sept. 10 , -8 27 310 May 190 16 1 ""J une 5 -37 96 - Jan. -200 -5 —— 44 -44 Feb. -200 -1 2 14 24 Mar. -300 -4 12 -37 58 Apr. -160 -12 -7 52 32 NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loans to purchase or carry margin stock Digitized5 forIncludes FRASER if these are unsecured or secured entirely by unrestricted collateral. H.16 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN M I L L I O N S OF D O L L A R S M U T U A L S A V I N G S BANKS REGULAR D E P O S I T S DATE NET FLOW ANNUAL GROWTH RATE 1 3 S A V I N G S & LOAN A S S O C I A T I O N S NET NEW 2 MONEY SHARE CAPITAL ANNUAL 3 GROWTH RATE NET FLOW NET NEW MONEY TOTAL 2 DEPOSITS NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY N O T SEASONALLY A D J U S T E D 1970 4,517 6.8 936 10,965 8.1 5,285 15,482 7.7 6,221 1971 9,621 13.5 5,678 28,230 19.3 20,653 37,851 17.5 26,331 9,788 12.0 5,397 32,902 19.5 23,884 42,690 17.0 29,281 1972 1972 1973 - - Feb. 931 — 809 2,818 Mar. 1,507 -- 773 4,287 Apr. 464 — 280 1,744 Feb. 551 — Mar. 1,102 Apr. 2/ 100 | —— 2,700 3,749 -- 2,532 5,794 — 1,668 2,208 — —— 402 1,904 —— 1,795 2,455 280 3,702 -- 1,628 4,804 866 — 756 966 n. a. •»— 3,509 X 3,305 1,948 2,197 1,908 — SEASONALLY ADJUSTED 1972 1973 - - Nov. 761 10.2 2,246 13.3 Dec." 902 12.0 — 2,164 12.7 Jan. 808 10.6 __ 4,026 23.3 Feb. . 465 6.1 10.4 7.5 5.0 - - - 1,834 579 391 2,430 13.7 1,294 7.2 Mar. Apr.&/ — -—— 3,007 12.3 3,066 12.5 4,834 19.4 2,299 9.1 3,009 11.8 1,685 6. 6 NOTES: 1 Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. • — «- — . 2 12 T a b l e 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS O F 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 OUTSTANDING COMMITMENTS PERIOD TOTAL ALL S A V I N G S MUTUAL S A V I N G S BKE> & LOAN ASSOCIATIONS (N Y. S T A T E ) NET CHANGE TOTAL ALL S A V I N G S MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N Y. S T A T E ) ( B i l l i o n s of D o l l a r s i, S e a s o n a l l y Adjusted)^£/ 1971 - Dec. 16.6 13.1 3.6 .09 - .06 .15 1972 - J a n . Feb. 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 14.1 15.0 15.4 15 .7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 25.9 26.5 26.0 25.2 20.8 21.5 21.2 20.6 5.1 5.0 4.8 M . .98 .59 -.59 -.68 .81 .69 -.38. -.51 .17 -.10 -.21 -.17 March April May- June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. ' NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end of period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 13 T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN M I L L I O N S O F DOLLARS PERIOD 1971 TOTAL FHLB FHLMC FNMA . SHORT-TERM DISCOUNT NOTES -439 -100 -450 —— +350 -339 Apr. -696 -451 -651 — +200 -245 -1 -453 -452 -- June -483 -136 -337 — +201 -347 July +604 +411 -39 — +450 +193 +300 — r-13 +554 +135 -388 +65 Aug. +335 +200 -87 Sept. +453 +526 -28 Oct. +942 +849 +200 — +649 +93 -396 -73 Nov. -96 +300 -250 — +550 Dec. +563 +500 — — +500 +63 - Jan. -259 —* —— -259 —— Feb. +169 +399 -403 Mar. +176 +248 -2 Apr. +138 -1 -1 May +129 +299 -200 June +599 +813 -1 July 1973 INTERMEDIATE..AND L O N G - T E R M I S S U E S - Mar. May 1972 TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES -367 -1 Aug. +120 -1 Sept. +624 +100 +200 +602 — — +250 +500 -72 +139 -1 -170 -- +814 -214 -366 — — — +121 — +100 +524 -1 -1 — -230 Oct. -112 -47 +103 - - -150 -65 Nov. +628 +311 +337 -25 -1 +317 Dec. +273 +475 -1 76 +400 -202 +116 +6 +9 +51 +10 +140 +379 , +204 - Jan. +131 +122 Feb. +452 +312 +251 Mar. +582 +378 -1 NOTES: Based on data from Federal Home Loan Bank Board (FHLBB), Federal National Mortgage Assoc. (FNMA) and Federal Home Loan Mortgage Corp. (FHLMC). Intermediate and long-term issues are those with an original maturity of one year or more, including Government National Mortgage Association mortgage backed bonds. H.16 T a b l e 12 NET CHANGE IN MORTGAGE HOLDINGS IN M I L L I O N S OF DOLLARS FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNMA TOTAL 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 5,404 2,462 9,940 15,999 2,682 1,845 3,938 5,377 9,561 10,172 24,160 31,982 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 1972 - J u l y Aug Sept Oct Nov Dec 4,872 5,931 5,286 4,779 5,114 5,943 4,717 5,563 4,918 4,684 4,984 5,811 1,500 1,600 1,400 1,400 1,500 1,000 438 553 502 472 517 598 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 1973 - J a n Feb Mar Apr May 3,760 3,754 5,217 n. a. 3,565 3,688 5,148 n. a . 900 900 1,200 1,200 458 331 568 506 2,045 2,428 3,303 3,291 162 29 77 n. a. 195 66 69 PERIOD COMMERCIAL BANKS MSB's S & L's INSURANCE FNMA-GNMA COMPANIES Not S e a s o n a l l y Ad l u s t e d 1969 1970 1971 1972 X July Aug Seasonally Adjusted 1972 - J u l y Aug Sept Oct Nov Dec 1973 - J a n ' Feb Mar Apr Miy 4,849 5,471 4,748 4,714 . 5,282 5,697 4,593 5,179 4,714 4,738 5,212 5,601 1,451 1,477 1,155 1,393 1,524 1,164 472 515 537 484 513 525 2,678 3,108 2,911 2,726 2,876 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 4,501 4,381 5,472 4,273 4,269 5,348 1,112 1,079 1,262 1,162 475 388 601 554 2,467 2,730 3,371 3,206 219 72 114 n. a. 228 112 124 n. a . July Aug NOTES: 1 Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance andTthrough August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 89per cent of the net increase estimated for all holders in 1 9 7 2 . 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING' IN BILLIONS OF DOLLARS, S E A S O N A L L Y ADJUSTED ANNUAL RATES RESIDENTIAL QUARTER TOTAL TOTAL 1- t o 4 FAMILY MULTIFAMILY COMMERCIAL MULTIFAMILY & COMMERCIAL FARM 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 6.4 6.0 6.5 7.4 9.5 9.2 10.1 11.3 2.3 2.2^ 1.8 1.9 1969 - I II III IV 32.0 29.1 25.8 25.2 23.8 21.5 18.7 18.5 19.4 16.8 14 ;0 13.1 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 9.4 11.6 15.0 16.2 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1.5 1.5 2.1 2.2 1971 - I II III IV 37.5 47.8 52.2 54.2 27.3 36.0 38.9 40.7 19.2 26.5 30.1 31.9 8.0 9.4 8.8 8.9 8.1 9.5 11.1 11.0 16.1 18.9 19.8 19.9 2.2 2.3 2.3 2.5 1972 - I II III IV 62.4 64.9 65.2 68.4 45.4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9.6 8.8 10.4 14.5 15.2 15.2 15 .4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 1973 - I - / 80.9 59.7 48.5 11.2 18.1 29.2 3.1 NOTES: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. H 16 PRIVATE HOUSING! PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S OF U N I T S , SEASONALLY A D J U S T E D A N N U A L RATES PERMITS PERIOD 1972 1973 - - TOTAL 1 —FAMILY COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY 2 - O R MORE FAMILY TOTAL 1 —FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS January 2,204 1,098 1,106 2,439 1,395 1,044 1,968 1,154 814 554 February 2,056 959 1,097 2,540 1,281 1,260 2,088 1,141 947 552 March 2,007 954 1,053 2,313 1,310 1,003 1,983 1,137 846 595 April 1,991 963 1,028 2,204 1,215 989 1,954 1,154 799 634 May 1,955 923 1,032 2,318 1,308 1,011 1,891 1,121 770 572 1,283 583 2,121 989 1,132 2,315 1,032 1,904 1,125 779 July 2,108 1,01-3 1,095 2,244 1,319 925 1,891 1,095 799 556 August 2,237 1,031 1,206 2,424 1,373 1,051 1,973 1,210 763 534 September 2,265 975 1,290 2,426 1,382 1,045 1,972 1,118 853 494 October 2,216 1,086 1,130 2,446 1,315 1,131 1,945 1,156 789 548 November 2,139 961 1,178 2,395 1,324 1,071 1,980 1,153 828 666 December 2,377 947 1,430 2,369 1,207 1,162 2,147 1,168 980 606 January 2,218 1,057 1,161 2,497 1,450 1,047 2,147 1,324 823 648 February 2,191 1,068 1,123 2,456 1,372 1,084 2,038 1,258 780 642 March 2,071 989 1,082 2,248 1,247 1,001 2,122 1,276 846 737 April 1,793 895 898 2,103 1,191 912 . NOTES: Private building permits (for 13,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. - H.16 T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES NEW H O M E S EXISTING HOMES 1 1 PERIOD RATE (IN PER C E N T ) SPREAD (BASIS POINTS) SPREAD BETWEEN RETURNS ON NEW A a a NEW HOMES CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND , YIELD NEW H O M E DISCOUNT SPREAD (IN PER CENT) M O R T G A G E S (PERCENTAGE (BASIS (BASIS POINTS) POINTS) POINTS) HUD(FHA) INSURED LOANS SECONDARY MARKET CONVENTIONAL LOANS PRIMARY MARKET RATE (IN PER C E N T ) SPREAD (BASIS POINTS) YIELD (IN PER C E N T ) 1971 - High Low 7.95 7.55 .52 .01 8.05 7.65 .62 .06 7.97 7.32 .31 •07 7.8 2.7 .28 .01 8.04 7.28 1972 - High Low 7.70 7.55 .61 .15 7.75 7.60 .66 •20 7.57 7.45 .48 .05 4.7 3.7 .14 .06 7.45 7.09 1972 - J a n Feb Mar Apr May June July Aug Sept 7 .60 7 .60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.70 .39 .26 .31 .15 .22 .28 .27 :28 .30 .32 .61 .55 7.70 7.65 7.60 7.65 7.70 7.70 7.70 7.70 7.75 7.75 7.75 7.75 .49 .31 .36 .20 .32 .38 .32 .33 .35 .37 .66 .60 7.49 7.46 7.45 7.50 7.53 7.54 7.54 . 7.55 7.56 7.57 7.57 7.56 .28 .12 .21 .05 .15 .22 .16 .18 .16 .19 .48 .41 4.0 3.8 . 3.7 4.1 ' 4.3 4.4 4.4 4,5 4.6 4.7 4.7 4.6 .11 .14 . .10 .10 .07 .06 .11 .10 .14 .13 .13 .14 7.21 7.34 7.24 7.45 7,38 7.32 7.38 7.37 7.40 7.38 7.09 7.15 7.70 7.75 7.80 7.90 7.95 .32 .35 .31 .44 .44 7.75 7.80 7.85 7.90 8.00 .17 4.5 4.6 5.2 5.9 6.4 Oct Nov Dec 1973 - J a n Feb Mar Apr May . • .17 .40 .36 .44 .49 . 7.55 7 .56 7 .63 7.73 . 7.79 .ll .14 .27 .28 .15 .19 .17 .17 .16 7.38 7.40 7.49 7.46 7.51 £ / NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. ^ Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. H.16 18 Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN AMOUNT (IN MILLIONS O F D O L L A R S ) DATE OF AUCTION 1972 - Oct Nov Dec 1973 - J a n . Feb. Mar . Apr . OFFERED | ACCEPTED 10 16 30 271.2 186.4 224.9 162.7 6 13 27 78.7 60.8 49.2 36.6 -- -- -- 4 11 26 82.2 108.7 2 8 22 5 6 19 21 5 S 19 21 i " AVERAGE YIELD 7.73 7.74 7.72 7.70 ^ 7.68 7.69 74.2 107.0 61.3 92.1 7.69 7 .70 128.7 65 .4 7.71 -- -- -- 110.3 71.6 7.73 -- — -- 170.8 107.7 -- -- OFFERED | ACCEPTED 42.2 37.2 AVERAGE YIELD 7.90 -- —— -- -- 68.0 7.90 -- -- -- 36.4 30.9 7.87 -- -- —— 75 .0 —— 42.4 66.3 AMOUNT (IN MILLIONS O F D O L L A R S ) -- -- -- 39.3 25.5 7.84 -- -- -- 100.9 62.9 7.89 -- -- -- 66.0 49.6 7 .92 __ __ 60.3 44.3 7.95 7.75 297 .3 168.7 7.81 - - -- -- -- -- -- 86.8 56.4 8.02 7.86 -7.89 111.9 81.6 8.11 -- -- -- 2 3 16 17 30 261.2 185.9 7 .92 128.9 88.4 88.2 8.17 8.23 14 29 258.3 212.4 187.7 140.0 7.96 8.00 117.6 113.3 84.4 74.0 8.31 8.39 J u n e 11 184.5 142.2 8.04 110.1 74.1 8.44 May 234.6 145.9 -- 216.6 - - 190.7 -- 111.0 NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received. H.16
@FedFRASER