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DECONTROLLED AFTER SIX M O M S

I

CONTSOEIIAL

'

L.5.8 Confidential (F.R.)

March 1 2 ,

1

|
%'S

rr

".7^

CAPITAL
MARKET
DEVELOPMENTS

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




1973

*_

/
W

L / C

"

\

INDEX

Developments in the 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:

je
ip
r
n.a.

Estimate
Preliminary
Revised
Not a v a i l a b l e




3

TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1973 - Feb.

2
9
16
23

Mar.

2
9
16

WEEK ENDING:

1973 - Feb.

Mar.

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa
7.38
7.20
7.22
7.46
7.23
7.34
7.22
—
——

7.25
7.27

YIELDS
BOND BUYER
MOODY'S
SEASONED 20
SEASONED
BOND INDEX

CORPORATE BOND MARKET
VOLUME;2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
99
n.a.
179
245
99
n. a.
234
75
n.a.
n.a.
70
99
20
234
275e

100
88

n.a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

2
9
16
23

5.00
5.05
4.85
4.90

5.16
5.16
5.06
5.13

451
493
307
277

83
83
85
60

2
9
16

5.00
5.05

5.22
5.27

366
483
620

77
78

BONDS SCHEDULED
WITHIN 28 DAYS
575
586
712
882
1,552
1*419
n. a.

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




TABLE 2: Details on Inventories
/ DATE
OFFERED

AMOUNT *
(MIL. $)

50.0
20.0
30.0
40.0

3/8
3/8
3/8
3/6

OFFERED

DATE
| RELEXSED

ISSUER

COUPON

Harris Bankcorp
Greater Jersey Bancorp
Jersey Central Pwr & Lt.
First City Bancorp of Texas

ORIGINAL
RATING AND
YIELD CALL PROTECTION

7.20
7.75
8 3/8
7 5/8

AMOUNT

ISSUER

COUPON

7.20
7.84
8.23
7.65

Ba

ORIGINAL
YIELD

7
10
5
10

yrs
yrs
yrs
yrs

ESTIMATED PROPORTION SOLD
98%
70%
75%
70%

INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED

NONE

INVENTORIES '
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE

CORPORATES
IN SYNDICATE

1973 - Feb.
q

9
16
23

780
838
814

120
112
155

1
175
128

Mar.

2
9

789
741

104
126

0
27

N.C. - No call protection.
1
All figures in millions of dollars. B1 t e List is daily average for week ended Friday, except for latest week
i
vhich i f daily average of three days ended Wednesday. All other figures arc as of Friday.




TABLE 3: High Grade Bond Yields

NEW
CORPORATE
Aaa1

DATE

MOODY'S SEASONED
CORPORATE

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS A

1970 - High
Low

9.43 (6/19)

7.72 (12/11)

8.60 (7/3)
7.48 (12/21)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 -„High
Low

8.26 (7/30)
7.02 (2/5)

7.71 (8/12)
7.06 (2/12)

6.51 (6/18)
5.69 (3/23)

6.23 (6/23)
4.97 (10/21)

1972 - High
Low

7.60 (4/21)
6.99 (11/24)

7.36 (4/28)
7.05 (12/8)

6.19 (4/14)
5.74 (11/17)

5.54 (4/13)
4.96 (10/21)

7.46
7.34

7.22

Ms

Feb.

9

16
23
Mar.

1

7.23
7.22

2
9

7.25
7.27

6.88
6.90
6.91

5.16
5.06
5.13

5.22
5.27

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
1
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series. ,




'

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

PERIOD
1973

STATE AND LOCAL 2

1

1972

1971

3,205
3,369
3,229

3,115
3,000
6,075

April
May
June

3,275
3,598
4,341

4,042
3,300
4,375

July
August
September

3,582
2,893
2,720

4,147
2,532
3,768

October
November
December

3,791
3,377
3,396

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1
2

2,475e
2,175e

1973

.1972

1971

l,810e
l,410e

1,776
2,005
2,239

' 2,732
1,851
2,258

1,989
2,017
2,270

1,891
2,167
2,013

1,805
1,966
1,726

1,989
1,903
2,098

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

!
|

|
i

1

j
|

1
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.




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

TOTAL

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

GROSS PROCEEDS BY
TYPE OF ISSUE&
COMMUNICATIONS

ISSUERS 1

2,934

1,476
1,369
856
1,079

4,541
4,240
4,030
5,151

PUBLIC
UTILITY

2,261

97805
11,214
9,195
10,564

1,593
2,781
1,867
3,147

2,851
3,798
3,136
3,258

74
245
57
245

511
449
836
428

1,525
2,109
1,629
1,398

3,205
3,369
3,229

1,767
1,907
1,677

604
412
577

834
1,041
976

59
12
3

195
83
233

392
529
604

533
988
740

752
498
227

1,529
1,354
1,658

3,275
3,598
4,341

1,622

789
744

92

100

226

1,219
738
1,538

178

1,218

864
1,148
1,786

15

1,676
1,336

391

3,582
2,893
2,720

1,807
1,523
863

657
421
789

1,118

3,791
3,377
3,396
1973 - Jan.—
Feb.S.

5,361
4,634
4,192
4,158

1,773
1,361
1,024

564
982

2,475
2,175

1,000
625

2,680

130

131

581
761
767

800

1,297
1,708
1,235

948
1,070

3
17
37

450
183
203

574
452
603

798
635
1,247

586
237
33

1,624
1,568
838.

28
124
93

162
171
95

383 ,
•
426
589

1,280

1,601

1,454
1,034
770

371
658
50

1,757
1,499
1,895

700
700

775
850

75

375

1,040

30

1,030

10

250

850

100

975

n. a.

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




3,495

794

860

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
March 1 through March 9, 1973

ISSUER

Pacific Gas & Elec
Ohio Edisori Co
Greater Jersey Bancorp
First City Bancorp of Texas
Massey-Ferguson Credit Corp
Western Union Telegraph
Jersey Central Power & Light
Harris Bankcorp




TYPE2

Com stk
(rts)
Pref stk
Bonds
Bonds
Bonds
Debs
Bonds
Bonds

AMOUNT
(MILLIONS
OF
DOLLARS)

125.0
35.4
20.0
40.0
20.0
60.0
30.0
50.0

MATURITY

—
—

1998
1998
1993
1998
1998
1980

COUPON
RATE OR
NET INTEREST COST

—

7.36
7.75
7 5.8
8.00
8.10
8 3/8
7.20

OFFERING
YIELD

—

7.29
7.84
7.65
8.00
8.10
8.23
7.20

MOODY'S
RATING

---

Baa
Ba

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

1
ISSUER
University of Kentucky
Vermont
St. Paul Ind. Sch. Dist & 625,
Minn.
Hempstead, N.Y.
Huron Valley Sch Dist, Mich
Pasco Co-Wide Sch Dist, Fla
Maryland, State
Mass Home Finance Agency
Miami, Fla.
Kenton, Co. Airport Bd Ky.
San Antonio, Tex
Somerset Co., N.J.

TYPE

2

Rev-ref
G.O.

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
1
RATE OR
I OFFERNET INTER- !
INC
EST COST
YIELD

MOODY'S
RATING

31.0
30.0

1982-1999
1974-1992

5.74
4.85

4.90-5.70
3.90-5.15

A
Aa .

26.7
G.O.
G.O.
13.5
G.O.
17.0
G.O.
15.9
G.O.
100.0
Rev.
43.4
G.O.
28.4
Airport rev 22.0
Rev.
14.0
10.1
G.O.

1976-1991
1974-1999
1974 2002
1974-2002
1976-1988
1974-2013
1974-1997
1975-2002
1974-1994
1974-1993

5.00

4.00-5.20
4.00-5.50
3.90-5.60
3.85-5.90
4.35-5.00
4.00-5.70
4.00-5.70
4.30-6.00
3.80-5.15
4.00-5.20

Aa
A
Baa
Baa
Aaa
A
A-l
Baa
Aa

--

5.44
5.55
4.74
—
——
-• —

5.04

Other
Farmers Home Admin.
Farmers Home Admin.

*
1
2

3

Notes
Notes

300.2
200.9

1978
1988

7.20
7.50

7.20
7.58

nights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million, and over.
In case of State and local government securities, G.O. denotes genera 1 obligation;
!<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds securied only by income from quasi-utilities; Rov.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




—

10
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
As of March 9 % 1973

ISSUER
Colwell Mortgage Trust
~ Lone Star Gas
B.F. Saul R.E. Investment Trust
Public Service Electric & Gas
Middle South Utilities
Trailmobile Finance Co.
General Tele Co. of Southeast
Northwest Bancorp
••Northern Indiana Public Serv.
\ Indianapolis j Power & Light
Walter Kidde & Co.
i NJB Prime Investors
Southern Bell Tele & Tele Co.
Baltimore Gas & Electric
Texas Eastern Transmission
ACF Industries, Inc.
Niagara Mohawk Power Corp
Indianapolis! P & L
American Tele & Tele Co.
•Walter E. Heiller & Co.
Texas Utilities
Portland General Electric Co.
American Electric Power Co.
Portland G & E
Portland General Elect
Great American Mortgage Invest.
Diversified Mortgage Investors
First Continental REIT
Riviana Foods Inc.
Excel Investment Corp
Texas Eastern Transmission
Petrolane Inc.
*Louisville G & E
•Investors Realty Trust
•Cabot, Cabot & Forbes Land Tr.
•Connecticut Light & Power
•Metropolitan Ed.
•Tenneco
•Wickes Corp
Continental Illinois Corp
Arrow Investment L & D




TYPE
Bonds
Bonds
Bonds
Pref stk.
Com stk
Bonds
Bonds
Bonds
Pref stk
Bonds
Debs
Bonds
Bonds
Com stk
Bonds
Bonds
Com stk
Com stk
Pref stk
Bonds
Com stk
Pref stk
Com stk
Pref stk
Bonds
Bonds
Notes
Bene Int.
Com stk
Com stk
Com stk
Com stk
Pref stk
Bonds
Bonds
1st mtge.
Pref stk
Bonds
Bonds
Bonds
Bene int.

AMOUNT
(MILLIONS
OF
DOLLARS)
25.0
45.0
30.0
60.0
90.0
30.0
25.0
75.0
30.0
30.0
65.0
25.0
350.0
45.0
60.0
15.0
52.5
20.0
500.0
20.0
87.5
20.0
184.5
20.0
35.0
25.0
50.0
15.5
15.5
20.0
84.0
35.4
21.5
15.0
25.0
50.0
25,0
100. C
50.0
100.0
20.0

APPROXIMATE DATE
OF OFFERING

Mar. 13
Mar. 13
Mar. 13
Mar. 13
Mar. 14
Mar. 15
Mar. 15
Mar. 15
Mar. 19
Mar. 19
Mar. 20
Mar. 20
Mar. 20
Mar. 21
M#r. 22
Mar. 22
Mar. 22
Mar. 22
Mar. 27
Mar. 27
Mar. 27
Mar. 28
Mar. 28
Mar. 28
Mar. 28
Mar. 29
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
3
Apr.
3
Apr.
4
Apr.
5
Apr.
Apr. 12
Apr.
Apr.
INDEF
INDEF

11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER
New York State
Wisconsin
Chicago Park Dist., Ill
Washington
Washoe Co. S/D, Nev.
Pittsburgh, Pa.
Henderson, Ky.,
Dallas, Texas
King Co, Wash
Montgomery Co, Md.
Tucson, Ariz
Baltimore, Md.
California
HUD
Santa Clara Co. Fac. Corp, Cal.
Washington
Penna, State of
Jordan S/D Utah
Los Angeles Dept. of Airport
Lacygne, Kan
Ohio
New York, New York
Los Angeles Co, Calif Flood
Control Dist.
Sacramento Muni Ut. Dist, Cal.
New Mexico

*
l
2

TYPE
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
Rev.
Rev.
G.O.
G.O.
Rev.
G.O.
Rev.
Bonds
G.O.
G.O.
G.O.
G.O.
Rev.
Rev.
G.O.
G.O.
G.O.
Elec Rev.
G.O. & Rev.

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

139.5
72.2
30.0
72.2
10.0
14.0
76.0
28.0
27.9
25.0
10.0
30.4
10.0
319.5
23.0
10.0
140.0
20.0
20.0
30.0
40.0
300.0

Mar.
Mar.
• Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Apr.
Apr.

5
11

22.0
50.0
12.0

Apr.
Apr.
Apr.

17
18
20

12
13
13
13
13
13
14
14
14
15
20
20
20
21
21
26
27
27
28

Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




12>
Table 8

STOCK PRICES AND VOLUME
TRADING VOLUME 2 -

STOCK PRICES 1 '
DATE
NYSE INDEX 3 :

D J . INDUSTRIALS

AMEX 4 -

AMEX

NYSE

1970 - H i g h
Low

52.36
37.69

(1/5)
(5/26)

8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (1/8)
6 3 1 . 1 6 (5/26) 19.36 (5/27)

18.5
7.8

(12/4)
(8/14)

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

1971 - H i g h
Low

57.76
48.73

(4/28)
(1/4)

9 5 0 . 8 2 (4/28) 2 6 . 6 8 (4/28)
7 9 7 . 9 7 ( 1 1 / 2 3 ) 2 2 . 7 2 (1/4)

22.1
11.0

(2/12)
(9/17)

6 . 7 (2/5)
2.7 (8/13)

1972 - H i g h
Low

65.14
56.23

(12/11) 1 0 3 6 . 2 7 ( 1 2 / 1 1 ) 28.53
25.61
(1/3)
8 8 9 . 3 0 (1/3)

21.8
11.2

(11/10)
(9/8)

7.4
2.6

(4/14)
(1/3)

1973 - F e b .

2
9
16
23

61.79
61.90
61.93
60.82

980.81
979.46
979.23
959.89

25.60
25.50
25.40
25.07

16.6
17.2
17.1
14.7

3.7
3.8
3.5
3.5

Mar.

2
9

60.17
61.02

961.32
972.23

24.68
24.88

17.2
16.0

4.0
2.9

'

1.

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

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures arti daily averaged for the entire week,
(millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, However abbreviated trading to the extent, and over the time
|
Hours/
Days/
j From
Through:
Day
Week
January 3, 1969;
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 = 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week

(3/10)
(9/8)

IY
TABLE 9: Security Credit

END OF PERIOD
Outstanding:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.
Outstanding
Changes:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.

1

2
3

4

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

CUSTOMERS'
NET DEBIT
BALANCES

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

5,700
6,180
6,620
7,010
7,200
7,510
7,600
7,780
7,800
7,800
7,890
7,900

2,490
2,510
2,520
2,530
2,560
2,650
2,690
2,780
2,830
2,860
2,860
2,440

8,190
8,690
9,140
9,540
9,760
10,160
10,350
10,560
10,630
10,660
10,750
10,340

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

2,488
2,542
2,512
2,459
2,300
2,231
2,245
2,117
2,056
2,097
2,218
2,317

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

7,700

2,910

10,610

--

2,296

--

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
30

---

90
10

-420

350
500
450
400
220
400
200
210
70
20
90
410

-200

470

270

--

—
-—
—
-—
—
—
—

•

268
54
-30
-53
-129
-99
14
-128
-61
41
121
99

—
---—
—
--

—
—
--

21

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans - for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
Series discontinued




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

DATE

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

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
"MONEY 2

-1,003
5,285
20,653
23,911

6,617
15,482
37,851
42,456

-1,766
6,231
26,331
29,289

1,484
1,168
3,117

2,193
4,323
4,121

1,737
1,152
n.a.

2,502
4,625
3,785

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
NET
GROWTH
1
FLOW
RATE
Not Seasonally Adjusted

1969
1970
1971
1972e/

2,549
4,517
9,621
9,764

4.0
6,8
13.5
12.0

1971 - November
December
1972 - January

631
1,209
855

——

1972

625
1,224
785

November
Decemberp/'
1973 - January e/

-——
--

-763
936
5,678
5,378

4,068
10,965
28,230
32,692

512
325
716

1,562
3,114
3,266

514
294
n.a.

1,877
3,401
3,000

——

16.7
17.8
16.2
13,3
12.6

--

—

2,706
2,930
2,796
2,246
2,149

- -

3,748

21.3

3.1
8.1
19.3
18.7

-—
---

3.4
7.7
17.5
16.6

-- .

1,996
1,493
3,833
2,251
1,446
. n.a.

Seasonally Adjusted •
1972 " August
September
October
November
December E/

792
939
779
720
793,

10.9
12.8
10.5
9.7
10.5

1973 - January e/

827

10.9

1
2
3

—
--

14.9
16.3
14.5
12.2
12.0

—

--

3,498
3,869i
3,485
2,966
2,942

--

4,575

18.4

- -

—
-—

--

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




4.

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
|
ALL
MUTUAL
|
SAVINGS
TOTAL
SAVINGS &
BANKS
LOAN
(N.Y. STATE) ,
ASSOCIATIONS

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollar 3, Seasonally Adjusted) r/
Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
- .06

.12
.15

•Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov
Dec.

17.2
18.5
19.6
20.5
21.6
21.3
22.7
22.3
23 .4 ,,
i
23.2
23.5
23.3

13.4
14.4
15.3
16.0
17.0
16.8
17.1
17.8
18.7
18.5
18.8
18.6

3.8
4.1
4.3
4.5
4.6
4.5
4.6
4.5
4.7
4.7
4.7
4.7

.23
1.36
1.13
.89
1.04
-.26
.38
.71
1.06
-.36
.38
-.19

.12
1.01
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20

.11
.35
.20
.20
.08
-.08
.08
-.05
.17
-.11
.04
.01

l

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




16-

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS
MUTUAL
LIFE
SAVINGS &|
TOTAL 1 COMMERCIAL
INSURANCE
SAVINGS
LOAN
BANKS
COMPANIES
BANKS
ASSOC.
• 1

FKMA-GNMA

Not Seasonally Adjusted
1968
1969
1970
1971

23,781
24,074
21,736
41,647

21,273
19,699
16,827
39,259

6,677
5,404
2,462
9,940

2,787
2,682
1,845
3,938

9,350
9,561
10,172
24,160

2,459
2,052
2,348
1,221

2,508
4,375
4,909
2,388

4,958
5,724
4,872
5,931
5,286
4,779
5,114
5,943

4,674
5,692
4,717
5,563
4,918
4,684
4,984
5,811

1,500
1,600
1,500
1,600
1,400
1,400
1,500
1,000

454
585
438
553
502
472
517
598

2,720
3,453
2,758
3,313
2,926
2,673
2,712
3,101

24
54
79
97
90
139
255
1,112

284
37
164
368
137
95
130
132

n.a.
n.a.
Seasonally Adjusted

n.a.

1971 - Dec.

4,371

4,118

862

524

2,367

365

253

1972 - Jan.
Feb. .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3,456
3,828
4,464
4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
5,697

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
4,738
5,212
5,601

1,112
1,178
! 1,264
1,361
1,434
1,489
1,451
1,477
1,155
1,393
1,524
1,164

290
315
464
400
453
516
472
515
537
484
513
525

1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
2,726
2,876
3,130

-23
-18
5
85
67
96
101
79
111
135
299
782

206
278
135
36
387
116
147
292
34
- 24
70
96

n. a.

n. a.

1,212

n. a.

n. a.

n. a.

n. a.

1972 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.

1973 - Jan.
1

2

1,000

n.a.

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.




17

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

RESIDENTIAL 3

1- to 4FAMILY

I
II
III
IV

16.0
20.8
26.3
27.2

10.3
14.0
18.9
19.7

7.0
10.6
15.1
15.9

3.3
3.4
3.8
3.8

I
II
III
IV

28.1
26.4
25.8
29.4

19.4
18.2
17.4
20.2

16.2
15.0
13.9
16.3

3.2
3.2
3.5
3.9

• I
II
III
IV

31.8
29.1
26.2
24.9

23.6
21.5
19.0
18.2

19.2
16.8
14.4
13.0

• I
II
III
IV

20.6
22.9
29.1
31.3

14.2
16.9
21.8
22.5

I
II
III
IV

37.1
47.8
53.6
53.4

I
II
Ille
IV

61.8
64.1
64.3
67.2

QUARTER

MULTIFAMILY

COMMERCIAL

FARM

3.9
5.0
4.9
4.7

7.2
8.4
8.8
8.5

1.8
1.8
2.5
2.8

6.4
6.0
6.6
7.3

9.5
9.2
10.1
11.2

2.3
2.2
1 8
1.9

4.4
4.7
4.7
5. 3

6.1
5.4
5.4
5.2

10.5
10.1
10.0
10.5.

2.2
2.2
1.7
1.4

9.1
11.5
15.5
16.0

5.1
5.4
6.3
6.5

4.8
4.6
5.2
6.7

9.9
9.9
11.5
13.2

1.5
1.5
2.1
2.2

26.6
36.1
40.1
40.1

18.5
26.4
31.4
31.4

• 8.1
9.7
8.7
8.7

8.3
9.4
11.2
10.8

16.3
19.1
19.9
19.5

2.2
2.3
2.3
2.5

45.4
47.1
46.4
49.1

35.9
37.5
36.2
39.4

9.5
9.6
10.2
9.8

14.5
15.2
14.9
14.6

23.9
24.6
25.3
24.3

2.6
2.6
2.9
2.6

'

PHI
and m o l ^ ' L l L ' ^ o r t g a g e ' d e b t ' c o m b i n e d ' 3 ™




. MULTI-AND
COMMERCIAL

^

S

™

°£

4

"

fami1

^

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2(per cent)
ACCEPTED
TOTAL
90TOTAL
61-YEAR"
9061-YEAR 1
OFFERED
MONTH & OVER
DAY
DAY
& OVER
MONTH
__
352.8
211.5 211.5
7.70
-271.2
224.9 224.9
7.73
186.4
162.7 162.7
7. 74
---

1972 - Oct.

2
16
30

Nov.

13
27

78.7
60.8

49.2
36.2

49.2
36.2

11
26

82.2
108.7

42.4
66.3

42.4
66.3

--

8
22

74.2
107.0

61.3
92.1

61.3
92.1

--

--

7.69
7.70

5
20

128.7
110.3

65.4
71.6

65.4
71.6

--

—

7.71
7.73

5

170.8

107. 7

107.7

Dec.

1973 - Jan.

Feb.

Mar.

__
--

-__
""

7.72
7.70
7.68
7.69

7.75

--

—

Note: Average secondary market yields are gross—before deduction of
38 basis-point fee 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 FNMA commitment fees and FNMA stock purchase and holding requirements.




19.
TABLE 15: Private Housing Starts and Permits
STARTS

. DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

2 - January
February
March
April
May

2,439
2,540
2,313
2,204
2,318
2,315
July
2,244
August
2,424
September 2,426
October
j2,446
November
2,395
December
2,344

3
1973 - January

2,468

TOTAL

1,395
1,281
1,310
1,215
1,308
1,283
1,319
1,373
1,382
1,315
1,324
1,196

1,044
. 1,260
1,003
989
1,011
1,032
925
1,051
1,045
1,131
1,071
1,148

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.9

1,423

1,045

155.3

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

37.4 7.5
27.8 8.0
37.7 10.5
29.1 8.5
32.4 9.4
31.9 9.6
26.2 9.4
30.3 9.9
28.2 8.9
25.4 8.5
21.3 8.0
42.3 5.8

106v0
117.8
155.7
172.9
186.1
184.8
171.9
190.8
167.3
184.3
157.8
102.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237
2,265
2,216
2,139
2,377
2,185

Total starts are Census estimates including farm for both permit-issuing and
noi.-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first'compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits are Census estimates based on 13,000 or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect
direct adjustment for differences in the number of days per month, as well as
other differences in timing and coverage.
The 1972 'SAAB. Starts figures have been revised.




20
TABLE 16: Mortgage and Bond Yields

DATE

1
I
1

FHA
MORTGAGES
30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
ISSUE
UTILITY
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1971 - High
Low

7.97
7.32

7.95
7.55

.28
-.19

8.26
7.02

.52
-.36

1972 -.High

LDW

7.57
7.45

7.70
7.55

.14
.06

7.40
7.09

.61
.05

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Augus t
September
October
November
December

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56
7.57
7.57
7.56

7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70
7.70
7.70
7.70

.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

.28
.12
.21
.05
.15
.22
.16
.18
.16
.19
.61
.55

1973 - Jan.

7.55

7.70

.15

7.38

.32

1

2

3

4
5
6

1

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
See note for Table 1.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




21
T A B L E 17: Conventional Mortgage Terms

DATE

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

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

1

EXISTING H O M E S .
FEES &
CONLOAN/
TRACT CHARGES EFFEC- MATU- PR1CF.
(PER
RATE
RITY
TIVE
RATIO
CENT) RATE
(YEARS) (PER
(PER
CENT)
CENT)
2
3

LOAN
AMT.
($000)

1972
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept,
Oct.
Nov.
Dec. £ /

7.62
7.45
7.38
7.38
7.40
7.41
7.43
7.45
7.43
7.48
7.50
7.51

0. 95
1.02
0.84
0.83
0.84
0.85
0.83
0.86
0.86
0.88
0.91
0.92

7.78
7.61
7.52
7.51
7.53
7.55
7.56
7.59
7.57
7.62
7.65
7.66

26.5
27,.0
27,.2
27,.2
27..2
27.,2
27.,2
27.,5
27.,3
27. 2
27. 5
27. 5

75.0
76.5
76.2
76.0
76.2
76.5
77.0
77.5
77.5
77.3
77.3
78.0

27.6
27.8
28.2
28.5
28.5
27.8
28.2
27.9
27.9
27.4
28.0
29.1

7.45
7.35
7.31
7.30
7.33
7.36
7.37
7.39
7.42
7.43
7.44
7.45

0. 82
0. 79
0. 77
0. 78
0. 77
0. 78
0. 83
0. 81
0. 83
0. 84
0. 84
0. 86

7.58
7.48
7.44
7.42
7.46
7.49
7.50
7.52
7.55
7.57
7.58
7.59

24.7
25.4
25.1
25.2
25.2
25.5
25.6
26.3
26.2
26.1
26.3
26.4

74. 7
75,.8
75.
,6
75,
.3
75,.4
76,,1
,2
76.
76.
,5
76.
,5
76.
,3
,8
76.
76. 8

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4
25.7

1973
Jan.

7.53

0.92

7.68

27. 4

78.4

29.1

7.46

0. 82

7.60

26.2

77. 2

25.7

£/

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.
Fees and c.harges--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 sdlely to
transfer of property ownership.
3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




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