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

CONFIDENTIAL

L

"

May 11, 1970

a V

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX
Developments in the Corporate and Municipal Bond Markets

3-5
6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

„ P Preliminary
r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1970 - Apr.

May

3
10
17
24

8;55
8.30
8; 65
8.75

7; 85
7;80
7.82
7.83

725
551
373
317

95
68
87
99

1
8
15

8.91
6.98
n. a.

7.92
7.99
n. a.

195
350e
500e

99
100
n.a.

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

WEEK ENDING:

1970 - Apr.

May

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS

3
10
17
24

5;90
6; 10
6.25
6.47

6.11
6.33
6.50
6.73

1
8
15

6.50
6.55

6.79
6.89
n.a.

685
444
448
733
2,717
2,636*
n.a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS
.

264
429
473
398

63
88
78
73

196
98
300e

77
68

,

^
BONDS SCHEDULED
WITHIN 28 DAYS'
1149
931
1047
649
530
624
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.)

i

2 Millions of dollars unless otherwise indicated.

'

I

Note:

Sec footnotes to Table 3

* AT&T rights offerings included in May estimate.




}
>

,
• ;
TABLE 2: Details on Inventories
DATE
OFFERED ,

CORPORATE BQNDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
' 'v
•
V
YIELD CALL PROTECTION
COUPON
ISSUER
\

AMOUNT
(MIL. $)

ESTIMATED PROPORTION SOLD

None

5/4
5/5
5/5
5/5

4/29
4/28
4/7
4/9

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE
COUPON
• ISSUER
IN YIELD
YIELD

AMOUNT.
20:0
15.0
40.0
50.0

May

Potomac Edison
Penn Pwr.
Essex International
Jones & Laughlin

INVENTORIES 1
. MUNICIPALS..
BLUE LIST
|
IN SYNDICATE

.DATE
1970 - Apr.

.

10
17
24

—-

1
8£/

9.25
9.20
9.25
9.88

9.25
9.10
9.25
10.01

.

+31
+21
+107
+61

ESTIMATED PROPORTION RELEASED

a

DATE
| RELEXSED

Ii

OFFERED

A
5
Aa
5
Baa 5
Baa 10

yrs
yrs
yrs
yrs

4Q%
15%
10%
10%

CORPORATES
IN SYNDICATE

553
550
557

113
154
154

210
123
36

541
484

116
90

24
0

N.C. - No call protection.
1
All figures in millions of dollars. Blue'List is daily average, for week ended Friday /except for latest week

which is daily average of three days ended Wednesday. All other figures are as of Friday.



BONDS IN SYNDICATE
Friday figures

Millions of dollars
CORPORATE BONDS IN SYNDICATE

200
100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

DEC.
68




MAR.

JUN.
1969

SEPT.

DEC.

MAR.

JUN.
1970

SEPT.

DEC.

/

'

NEW
CORPORATE
Aaa 1

DATE

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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

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

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

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

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

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

8.98(5/8)
8.20(2/27)

7.99(5/8)
7.79(3/6)

7.15(5/8)
6.60(3/6)

6.89(5/8)
5.95(3/12)

17
24

8.65
8.75

7.82
7.83

6.79
7.01

6.50
6.73

1
8

8.91
8.98

7.92
7.99

7.08
7.15

6.79
6.89

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

1969 - High
Low
1970 - High
Low

May

MOODY'S SEASONED
CORPORATE
Aaa *
6.55(1/27)
5.95(9/13)

1968 - High
Low

1970 - Apr.

.

TABLE 3: High Grade Bond Yields

1

\
\^

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




HIGH GRADE BOND YIELDS

Per cent

NEW CORPORATE

MOODY'S V /
CORPORATE Aaa

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

1966




1967

\

1968

1969

1970

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

PERIOD

STATE AND LOCAL 2

1

19 7 0

1969

196 8

January
February •
March

2,601
l,810e
3,400e

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

3,000e
4,lOOe

2,748
2,076
2,530

1,428
1,866
2,411

• July
August
September

2,478
1,427
2,427

2,143
1,432
1,557

October
November
December

1,933
2,375
2,532

2,129
1,767
2,054

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

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

13,572
19,904
26,744

10,882
16,015
21,965

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

7,811e

r
i
I

196 8

19 70

1969

1,338
1,212
1,499

1,262
987
538

1,178
1,158
1,404

1,801
1,110
737

1,318
1,143
1,395

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

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

6,435
8,899
11,881

7,956
12,008
16,574

l,650e
l,000e

j

4,049

Excluding finance companies 3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year

6,170

'5,107
5,427
4,785
5,654

!
I

20,973

1 . Securities and Exchange Commission estimates of gross proceeds.
2
Investment Bankers Association of America estimates of principal amounts.
3
Total gross proceeds excluding offerings of sales and consumer finance
companies.
Note;

AT&T rights offering included in May estimate.




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

QUARTER
' OR
MONTH

PUBLICLY
OFFERED

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
ISSUES INCLUDED
PRIVATELY PFD.
MFG.
PLACED
FOREIGN
CONVERTIBLE
STOCK

1969 - I
II
III
IV
1970 - I e/

6,218
7,354
6,332
6,840
7,811

2,657
3,411
3,186
3,479
4,554

1,540
1,673
1,347
1,053
1,185

1969 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970 - Jan.
Feb.
Mar.
Apr.

2,748
2,076
2,530
2,478
1.426
2.427
1,933
2,375
2,532
•2,601

1,268
871
1,272
1,279
685
1,222
969
1,164
1,346
1,594

649
510
514
609
259
479
313
226
514
485
300
400
400

1

1,810

1,060

3,400
3,000

1,900

2,000

2,023

2,268
1,797
2,307
2,072

830
694
744
589
482

726

651
984

672

522
450

1,100
600

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

ISSUERS 1

215
227
289
115

1,355
1,126
750
809
862

1,,407
1,,773
i;,862
i,,314
2,,787

1 ,346
=
1 ,878
=
1=,544
1,967
1 ,939

473
432
684
598
709

2,993
3,266
2,243
2,961
2,377

62

430
463
233
214
167
369
105
303
401
387
225
250
330

513
569
691
875
362
625
260
453
601
787
500
1 ,500
800

784
392
702
493
507
544
745
622
600
639

44
197
191
286
126
272
120
201
277
229

1,405
915
946
826
433
984
808
1,099
1,054
947

480
820
960

220
260
25

610
820
1,215

28

137
132
122
35
59
8
48
60
n.a.
n.a.
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.




COMMUNICATIONS

T A B L E b:

ISSUER

Large Long-term Public Security Issues for Nev, Capital
(Other than U.S. Treasury) 1

v

TYPE '

AMOUNT
(MILLIONS
OF
DOLLARS)

I

!
:
i.ulTON
oriT.R- ' :'<)o
HA, . .OR
MATURITY ' ! • i. i 1 . 11.
, K - INC
:
i 1 COST
i Y1HLU
..L

Corporate
Philadelphia Elec. Co.
Boise Cascade Credit Corp.
Carolina Pwr & Light
Hartford Elec Light Co.
Aluminum Co. of America
Southern Union Gas Co.
Jewel Cos.
General Acceptance Corp.




1st Mtg.
Debs
Pref,, stk.
1st m t g .
/
S.F. debs. S.F. debs.
Com istk.
Debs

40. 0
75.,0
30.,0
20.,0
150..0
15..0
24..7
50..0

1976
1975

8. 50
10.,00

8. 50
10.,00

2000
1995
1990

9. 25
9.,00
9.,75

9,,20
9,.10
9,,75

1990

10,,25

10,.25

Aaa
Bbb
Aa
A
A
Bbb

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

ISSUER
I

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

State & local Government
Kansas City, Kansas
Louisiana Stadium and
Exposition District
Fulton Co. Ga. Sch. Dist,
Oakland Co, Mich.

Rev.
Rev.
G.O.
Bond

22.0

1971-90

6.71

16.5

1971-91
1971-95
1971-99

6.00
Not reoffered
6.71
4.60-7.00
7.55-7.57
5.00-7.80

12.0

20.9

4.75-7.10

Rights 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 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.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




N. A.
n .R.

A-l
A-l

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

ISSUER

TYPE

Corporate
Chase Manhattan Mtg. Trust Debs.
Chase Manhattan MtR. Trust Benf. Int.
Canadian Pacific Railway Co Equip. Trust
Debs.
Raytiestos-Manhattan, Inc.
Debs.
National Cash Register
Central Hudson Gas & Elec-to 1st mtg.
First National Holding Corp .Debs.
1st Mtg.
Monongahela Power Co.
Bds.
Burroughs Corp.
Notes
American Brands
Columbus & Southern Ohio Co Bds.
1st Mtg.
Southern Counties Gas Go.
Debs.
Bunker-Ramo Corp.
Debs w/w
AT&T
Debs.
Mapco Inc.
1st Mtg.
Northern States Power Co.
Florida Power and Light Co. 1st Mtg.
Bds.
New York Telephone Co.
Bds.
Ohio Edison Co.
Dallas Power and Light Co. 1st Mtg.
Bds.
Cleveland Elec/111.Co.
Texas Eastern Transmission 1st Mtg.
1st Mtg.
Dayton Power & Light Co.
Conv. debs.
Avco Corp.
General Tele, of California Debs.
1st Mtg.
Western Mass. Elec. Co.
Kansas City Power & Lgt. Co 1st Mtg.
Com. stk.
Consumer Power Co.
Debs.
New Jersey Bell Tel. Co.
Bds.
West Penn.Power
Debs.
Lone Star Gas Co.
Bds.
Appalachian Power Co.
1st Mtg.
Consurtier Power Co.
1st Mtg.
Boston-Edison
Louisville Gas & Elec. Co. 1st Mtg.




AMOUNT
(MILLIONS
OF
DOLLARS)
60.0
60.0
30.0
25.0
150.0
" 25.0
25.0
15.0
75.0
100.0
30.0
32.0
20.0
1569.0
20.0
45.0
60.0
150.0
45.0
30.0
. 75.0
50.0
35.0
' 50.0
70.0
30.0
35.0
40.0
100.0
25.0
30.0
70.0
60.0
j60.0
20.0

APPROXIMATE DATE
'OF OFFERING

!

.

May 11
May 11 .
May 12
May 12
May 12
May 12
May 13
May 13
May 13
May 14
May 14
May 14
May 18
May 18 (rts. exp.)
May 18
May 19
May 20
May 20
May 21
May 25
May 26
May 26
May 26
May
June 2
June 3
June 4
June 5
June 8
June 9
June 10
June 15
June 17
June 22
June 23

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local Government
Utica Mich. Com. S/D
Puerto Rico Wtr Res. Auth.
Detroit, Mich.
Mississippi
Metro. Wtr. Dist. of So. Cal.
Montana, State of
Delaware, State of
Miami Beach, Florida
Los. Ang. Calif. Parking Auth.
Monroe Co. Comm. Sch. Bldg.
Corp., Indiana
Connecticut, State of
Austin, Texas
^Massachusetts, State of
Richmond, Virginia
Massachusetts Bay Transp.
Auth. System
Delaware River Port Auth, N.J.

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

15.5
70.0
24.0.
20.9
100,0
17.4
20.0
12.0
25.0

May
May
May
May
May
May
May
May
May

11
11
.12
12
12
12
13
13
15

1st Mtg. Rev.
G.O.
Rev. & GeOe
G.O.
G.O.

10.5
75.0
11.3
47.4
27.0

May 19
May 19
May 21
May 21
June 17

Rev.
Rev.

65.0
75.0

June 24
June 17

Other
Federal Home Loan Bank

*
1

Bonds

200.0

May 20

Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
1
Government issues of $10 million and over.
2
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
x.
Postponements:
Signal Companies
75.0
market conditions
Appalachian Power Co.
70.0
market conditions
Pennsylvania St. Pub. Sch.
21.4
,
no bids received
Bethlehem Steel Corp.
150.0
market conditions
Long Beach California
30.0
market conditions
1
Public Service Co. of Colorado
22.8
market conditions
Arkansas Power and Light Company
25.0
market conditions




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
S&P
5003

DATE

TRADING; VOLUME 2
AMEX 4

D.J. - IND.

AMEX

NYSE

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
825.13(3/21) 22.00(3/22)

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

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

1969 - High
Low

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

968.85(5/14) 32.91(1/3)
769.93(12/17)25.02(7/29

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

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

1970 - High
Low

93.46(1/5)
78.60(5/5)

811.31(1/5)
709.81(5/5)

27.02(1/8)
21.42(5/5)

60.1(2/6)
44.6(3/20)

28.4(1/2)
12.1(4/24)

1970 - Apr. 17
24

85.67
82.77

775.94
747.28

23.35
22.40

50,3
50.0

14.4
12.1

81.44
79.44

733.63
717.73

21.99
21.69

56.8
52.9

20.3
17.0

May

1
8

i

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

2

1941-43 = 10.

3

Average dollar value of shares listed.

4

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.Total
number of shares traded per week (millions of shares). Trading is normally
conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2 hours per
week. In recent years, however, abbreviated trading to the extent, and over
the time periods, shown below:
Hours/
Days/
Hours/
From:
Through:
Day
Week
Week
August 8, 1967
January 22, 1968
June 30, 1968
January 3, 1969
July 7, 1969
^
January 2, 1970




August 20, 1957
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1, 1970

4
4
5-1/2
4
4-1/2
5

Highs and lows are

5
5
4
5
5
5

20
20
22
20
22-1/2
25

15

STOCK PRICES AND TRADING VOLUME
AM EX
36

STOCK PRICES

32

-

28

-

24

Weekly
i

'

•

I i I i i I I I I i I

i

AMEX PRICE LEVEL INDEX Z V l

J

SAP's 5 0 0

V

D.J.

SAP

(Ind.)

(500)

1 2 8 0 128

-

1200 120

-

1 1 2 0 112

-

1040 104

-

20

16

/V W

12 -

v

V

1

D J . IND.

1

M

\

U y W

8

-

960

96

880

88

800

80

720

72

Millions of shares
AMEX TRADING VOLUME (TOTAL FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




1968

1969

1970

TABLE 9: Security Credit

END OF PERIOD

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

2
3

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

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

5,570
5,670
5,340
5,170
5,000
4,940
5,040
' 5,070
4,970

2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,580

8,330
8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,550

8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,445

3,077
3,084
3,085
2,783
2,577
2,579
2,753
2,613
2,803

4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

1970 - Jan.x/
Feb.r/
Mar.]>/

4,680
4,570
4,510

2,430
2,390
2,370

7,110
6,960
6,880

6,683
6,562
6,353

2,626
2,463
2,441

4,057
4,099
3,912

-190
-40
110
-360
-210
-200
-110
50
-20
-40

-830
-274
430
-260
-699
-496
20
204
-132
334

-351
-271
7
1
-302
-206
2
174
-140
190

-477
-57
423
-261
-397
-290
18
30
8
144

-440
-150
-80

-762
-121
-209

-177
-163
^22

-585
42
-187

Change in
Outstanding:

1

CUSTOMERS1
NET DEBIT
BALANCES

-

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-160
-20
100
-330
-170
-170
-60
100
30
-100

1970 - Jan.r/
Feb.r/ ~
Mar. jg/

-290
-110
-60

-30
-20
10
-30 ..
-40
-30
-50
-50
-50
60
-150
-40
-20

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.




X

TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ m i l l i o n s )

DATE

1967 N
1968
1969

1969 - Feb.
Mar.
Apr.
1970 - Feb. >
Mar. 2./

1969 - Nov.
Dec.
1970 - Jan.
Feb.
Mar. 2/
Apr. £/
1
2
3

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

5,082
4,208
2,551

331
642
-197
246

9.3
7.1
4.0

2,376
1,143
-747

264
81
-325

- - .•

——

/

510
-100

272
229

4.9
4.1

-117
298
304
265

-2.1
5.4
5.5
4.7

150
-88
-230

-, ---

SAVINGS .
& LOAN ASSOCIATIONS
NET
SHARE CAPITAL
ANNUAL
NEW
NET
GROWTH
MONEY 2
1
FLOW
RATE
Not Seasonally Adjusted
10,649
9.4
6,129
6.0
7,399
2,738
4,020
3.1
-1,003

605
1,370
-516

—

-754
247
1,027
1,049

2.4
0.4
-6. 7
2.2
9.2
9.3

15,731
11,607
6,371

8,505
3,882
-1,749

936
2,012
-713

177
554
253

2,161
183

-'

NET
NEW
MONEY 2

569
479
-543

——
205
-1,661
283
Seasonally Ad lusted

265
47

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
FLOW
RATE 1

__
——
—

9.4
6.3
3.4
__

;

451

327
466
23

537
276

3.2
1.3

-871
545
1,331
1,314

-5.2
3.3
7.9
7.8

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.
SOURCES National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




833
56p
868

--

__
--

--

.

19

SAVINGS FLOWS (seasonally adjusted)

Millions of dollars

Monthly

2000

I\^

—

-

-

/V

V

r

TOTAL

- \ T\ I

\ M

1

1

1111M

K

-

1

-

I.I l l-l.l.

SAVINGS t LOANS

^

MUTUAL SAVINGS BANKS
-

1
1966

"
1967




1
1968

1 1 1 1 1 1 1 1 1 1 1 1 1 M l 1 1 1 1 1 1 II
1969
1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1

DATE

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970 - Jan.
Feb.
Mar.

1

. OUTSTANDING COMMITMENTS
1
NET CHANGE
ALL
ALL
MUTUAL
|
. SAVINGS.
TOTAL
SAVINGS &
SAVINGS &
TOTAL
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, S easonally Adjusted) If

10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4

7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5,8

3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6

8.2
7.9

5.6
5.4
5.2

2.6
2.5 ,

,

.18
.15
-.11
-.18
k32
-.36
-.31
-.33
-.24
-.25
-.17
-.31

.

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

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

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

-.22
-.23
-.17

.04
-.07

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.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars
TIT

TOTAL

N Y MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

SATE

1966
1967
1968
1969

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.
Not Seasonally Adjusted

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

18,197
19,988
23,827
23,485

15,874
18,191
21,319
19,110

4,705
4,639
6,677
5,152

2,760
3,118
2,796
2,495

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

4,648
2,914
2,496
2,056

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

1969 - Jan.
Feb.
Mar,

1,701
1,750
1,964

1,500
1,529
1,759

451
480
519

293
228
198

622
671
917

134
150
125

201
221
205

1970 - Jan..Feb.

1,091
1,149
n.a.

• 487
616
n.a.

100
100
0

38
106
153

136
223

213
187
n.a.

604
533
529

Mar.

317

Seasonally Adlusted
1969 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. j
Dec.

2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,1661,069
1,292

668
632
567
534
440
151
310
383
244
237
347

266
230.
246
251
230
181
157
137
124
146
235

884
875
899
854
1,022
859
720
654
627
547
576

207
159
194
169
183
173
193
191
171
139
134

1970 - Jan.
Feb.
Mar.

1,493
1,604

937
1,105
n;a.

288
285
114

24
143
197

400
436
276

225
241

l

177
193
207
224
278
334
530
511
568
583
614
556
499
516

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.




"

23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5
TOTAL, ING|_. FNMA - GNMA

2:0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

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

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

1

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1966

- If/
II
III
IV

28.5
24.3
18.7
15.2

19.2
15.6
11.0
9.2

14.8
12.1
8.4
7.0

4.4
3.6
2.6
2.1

6.9
6.5
5.5
4.2

11.6
10.1
8.2
6.2

2.4
2.2
2.2
1.8

1967

, - If/
IIP
nil >
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9 ^

6.8
10,5
15.7
16..0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

1968

r 11/
Hp
III]>
IVp

27.1
25.9
26.5
30.1

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

>3.0
3.2
3.5
4.0

6.3
5.7
6.5
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8

30.4
!£/
Hp
28.5
III]> 26.4
IVp 24.0

22.1
21.2
19.8
16.9

17.9
16.5
15.1
13.0

4.2
4.7
4.6
3.9

6.1
5.0
4.6
5.1

10.3
9.6
9.1
9.0

2.2
. 2.3
2.0
1.9

•

x

1969

1

2

-

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 non-farm mortgage debt by type of property, where not available*
and interpolations and extrapolations, where required, estimated by Federal
Home Loan Bank Board and the Federal Reserve.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.




%
%
%
%

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

32
TOTAL

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FN MA ''Auction" Results
COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEARll
TOTAL
TOTAL
9069061-YEAR 1
OFFERED
DAY
MONTH & OVER
DAY
MONTH
& OVER
581.4
297.8
37.7
187.3 72.8
9.37
9.29
9.26
'

WEEK
ENDED
Jan.

26

Feb.

9
24

497.0
438.1

295.3
279.9

41.2
52.7

188.0
150.4

66.1
76.8

9.23
9.20

9.28
9.25

9.15
9.13

Mar.

9
23

354.6
395.4

276.4
239.0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19
9.14

9.13
9.12

Apr.

6
20

268.4
315.7

190.2
185.2

41.0
54.0

121.4
98.2

27.8
33.1

9.05
9.02

9.07
9.04

9.10
9.10

May

. 5
11

443.3

195.5 ,.,43.5
(100.0)2/

121.1

38.9

9.01

?.04

9.10

Note: Under the FNMA auction.system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
1

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year. Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.•

3 FNMA announced


limit of accepted bids for next week's auction.

27

FNMA "AUCTION" RESULTS

$ Millions
"200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

6 MONTHS
100

1 YEAR
AND OVER

50

3 MONTHS

IMPLICIT YIELD
6-MONTH COMMITMENTS
•

'

1

• 1

1

1

'

—

1

1

1

1

1

1

1

80^

600
TOTAL BIDS RECEIVED
400

200
TOTAL BIDS ACCEPTED
JUNE

AUG.
1969

OCT




DEC.

0
FEB.

APR.

JUNE
1970

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

UNADJUSTED
TYPE OF FINANCING

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1 -FAMILY 2 OR MORE

,402

824
797
877
826
803
752
828
766
762
776

764
708
656
681
626
624
653
624
518
626

131.9
159.0
155.5
147.3
125.2
124.9
129.3
123.4
94. 6
84.1

18.9
23.0
21.1
21.5
20.8
22.4
18.3
25.1
18.8
23.2

1,059
1,301
1,383

577
722
690

482
579
693

66.4
74.0
113.8

16.5
17.5
25.2

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,588
1,505
,533
,507
,429
,376
,481
,390

1970 - Jan.
Feb.
Mar.

,280

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
.ANNUAL
RATE) 2

4.2

109.1
131.6
130.1
121.2
99.7
98.3
106.2
93.3
74.7
57.9

1,421
1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,239

3.4
3.9
4.8

46.5
52.6
83.8

1,013
1,137
1,117

3.9
4.4
4.3
4.6
4.7
4.2
4.8
5.0

3.9

Total starts _axe Census estimates including farm "for both permit-issuing and
non-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 before January 1963 are Census estimates for about_10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




A

29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2
/

PER CENT OF UNADJUSTED TOTAL STARTS

rSUILDING PERMITS
(in issuing areas)

MULTI-FAMILY
• (2 or more)

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
.

2

DATE
25-YEAR 30-YEAR

CONVENTIONAL
MORTGAGES
3 '

SPREAD BETWEEN YIELDS
ON C0NV f &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
' AND
FHA MORTGAGES

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low
1969
High
Low

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

5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40 .
6.75
8.35
7.55

.23
.25
.30
.U
-.12
.12
-.27
.40
.13

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91 .

1.69
. 77
1.16
1.28
.27
1.20
.26
1.08
-.13

1969 - D e c .

n. a.

8.62

8.35

-.27

8.75

-.13

8.46
8.55
n. a.
1970 - Jan.
.99
.
8.30
9.29
8.55
n. a.
-.74
Feb. •
.60
-.65
8.60
9.20
8.55
n. a.
Mar.
.50
8.60
9.10
8.55
-.55
n.
a.
Apr.i
l Neither mortgage nor bond yields include allowance fon_servicing costs which aremuch, 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.
,
-2 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. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4
See note for Table 1.




MORTGAGE AND BOND YIELDS

Monthly

HOME MORTGAGES
CONVENTIONAL

Aaa CORPORATE BONDS
NEW ISSUES

H 111 11 11111 11 l-H I li I I 11
YIELD SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

i 1111 u 11111 111111111111 100
1962




1964

1966

1968

1970

T A B L E 17: Conventional Mortgage Terms

DATE

NEW HOMES
CONFEES &
C
H
A
R
G
E
S
EFFECTRACT
MATURITY
RATE
(PER
(YEARS)
TIVE
(PERCENT) RATE
CENT)
2
3

1

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

EXISTING H O M E S
FEES &
CONLOAN/
T R A C T CHARGES E F F E C - M A T U - PRICE
(PER
RATE
TIVE
RITY
RATIO
CENT) RATE
(PER
(YEARS) (PER
CENT)
CENT)
2
: 3

73 .8
72 .6
73,. 2
73..0

7.35
7.46
7.54
7.64

0.84
0.85
0.83
0.86

7.79
7.90
7.92

0.91
0.93
0.92

7.79
7.94
8.05
8.08

23.0
23.0
22.7
22.8
22.8
22.6
22.2

7.98
8.00
8.08

0.91
0.90
0.93

8.13
8.15
8.24

22.2
22.6
22.9

8.13

0.94
1.02

8.29
8.41

22.4
22.4

1.27

8^48

22.7

LOAN
AMT.
($000)
4

1969
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

7.32

7.47
7.62
7.65
7.76

25.4
25.8
25.6

7.76
7.86
7.89

0.93
0.96
0.88
0.84
0.92
0.86
0.92

7.91
8.00
8.05

25.5
25.2
25.3

7.98
7.97
8.07

0.89
0.96
1.06

8.13
8.13
8.25

25.3
25.3
25.4

8.34
8.41
8.51

7.47
7.50
7.62

25.8

24.0

72.,0
72.,3
72.,4
72. 9
72. 8
71. 9

24.8
25.0
24.9
24.5
24.3
24.7
25.0
24.6
25.0

25.0
25.2

69. 3
71,.8

25.1
24.9

25.2

71. 6

25.4

7.49
7.60
7.68

72.7
71.8
71.9
71.4
71.7
71.2
70.7
70.2
70.4
70.6

20.2
19.9
19.7
20.1
20.1
19.8
19.2
19.5
20.1
20.8

m O
Jan.
Feb.

8.16

1.08

8.23

"1.09

Mar.

8.28

1.36'

8.23
8.26

70.3
20.5
70.2 . 2 0 . 4
20.6

70.7

1

Compiled by Federal H o m e L o a n B a n k Board in cooperation with Federal Deposit Insurance
Corporation.
Data are weighted averages based on probability sample survey of characteristics of conventional first m o r t g a g e s originated by major institutional lender
groups (including mortgage c o m p a n i e s ) 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 m o r t g a g e rates only, based on unweighted
opinions of field-office directors of the Federal H o u s i n g Administration, are available
somewhat sooner than the results of the FHLBBrFDIC survey, and are included-in the case
-of'new home m o r t g a g e rates--in Table 16.
q

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.
4

Derived by FRB.




.

CONVENTIONAL MORTGAGE TERMS
Monthly

30
MATURITY
NEW
25

EXISTING
20

I

ii

i i i i i i i i i i I i i i i i i i i i i i l

15

80

LOAN/PRICE RATIO

NEW

75

EXISTING
70

I i i i i i I i i i i i 1 i65
i i i i i i i i
Thousands of dolliars

LOAN AMOUNT
30
NEW

20
EXISTING

10
1

I

1964




J—!
1966

1
196#

I ii i i i i i i i i i I i i i i i M i, i i i
1970
* CHANGE IN SERIES