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e m m i
DECONTROLLED' AFTER S I X MONTHS

"

L.5.8 Confidential (F.Rii

CAPITAL
MARKET
DEVELOPMENTS

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




May 1 ^ , 1 9 7 3

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:

e

Estimate

p

Preliminary

r

Revised

n o.

Not a v a i l a b l e




3
TABLE 1: Yields, Volume and Reception

MOODY'S
SEASONED
Aaa

WEEK ENDING:

6
13
20
27

1973 - Apr.

May

4
11
18

May

139
83
. 70
492

7.26
7.26

7.45
7.40

NEW a ISSUE
1973 - Apr.

7.27
7.25
7.25
7.27

7.51

WEEK ENDING:

CORPORATE BOND MARKET
VOLUME^
PER CENT
-GROSS
SOLD BY END
BONDS SCHEDfLED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

205
39
155e

BOND BUYER
SEASONED 20
BOND INDEX

90
100
100
98

„

97 .

MUNICIPAL BOND MARKET
VOLUME 2
PER CENT
!"
GROSS
SOLD BY END
i BONDS SCHEDULED
OF, WEEK
I WITHIN 28 DAYS
OFFERINGS

6
13
20
27

5.05
4.85
4.90
5.00

5.22
5.07
5.17
5.14

. 304
. 657
286
286

4
11
18

4.85
4.85

5.10
5.10
n.a.

354e
334
462

90 '
93
67
77

64

701
519
433
618
602
1,018 .

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

Sec footnotes to Table 3




•p

T A B L E 2: Details on Inventories

DAT L:
i
OFFERED

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

AMOUNT '
(MIL. S)

ESTIMATED PROPORTION SOLD

NONE

\

OFFERED
4/26
5/1
5/2

DATE
1 R'ELEXSED
5/7
5/7
5/9

DATE
1973 - April

May

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST
ORIGINAL
COUPON
ISSUER
YIELD
7.13
Ford Motor Credit
7.25
Gulf Power
7.50
7.48
Hartford Elect
7.50
7.45

AMOUNT
75.0
15.0
40.0

13
20
27
4
11

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
618
'
56
701
105
661
76
633r
608

72
162

WEEK
INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED
+23
5 yrs
25%
+4
Aa
5 yrs
25%
+5
Aa
5 yrs
20%

CORPORATES
IN SYNDICATE
0
0
45
61
0

N.C. - No call protection.
j
l
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest \.cek
 daily average of three days endt-d Wednesday. All other figures arc as of Friday.
which i<



T A B L E 3:

High Grade Bond Yields

MOODY'S SEASONED
CORPORATE
Aaa 2
7.71 (8/12)
7=06 (2/12)

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
6.51 (6/18)
5.69 (3/23)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
6.23 (6/23)
4.97 (10/21)

1971 - High
Low

NEW
CORPORATE
Aaa 1
8.26 (7/30)
7.02 (2/5)

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 (11/1-7)

5.54 (4.13)
4.96 (10/21)

1973 - High
Low

7.52 (3/16)
7.29 (1/21)

7.31 (3/30)
7.11 (1.5)

6.91 (5/11)
6.42 (1/5)

5.35 (3/22)
5.03 (1/12)

7.51

7.27
7.25
7.25
7.27

6.87
6.84
6.84
6.88

5.22
5.07
5.17
5.14

DATE

1973

Apr.

6
13
20
27

——
--

7.45

7.40
7.26
6.94
5.10
4.
5.10
7.26
6.98 .
11
1
New, issue, Aaa utility, with call protection, adjusted (as described in
1
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
falls midway between the four top groups as classified,by Moody 1 s Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.
.

May




6
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE

1

STATE AND LOCAL '

1972

1971

2,384
1,894
4,050e

3,205
3,369
3,229

3,115
3,000
6,075

2,250e

3,275
3,598
4,341

August
September
October
November
December

January
February
XarcH
April
May

|
I

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1971

1,776
2,005
2,239

2,732
1,851
2,258

4,042
3,300
- 4,375

l,525e 1,989
2,017
2,270

1,891
2,167
2,013

4,147
2,532
3,768

1,805
1,966
1,726

1.989
1,903
2,098

3,791
3,377
3,396
,328e

1972

3,582
2,893
2,720

July

1st
2nd
3rd
4th

1973

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

1,978
1,481
2,353

5,812

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




T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

CHARTER
OR
MONTH

TOTAL

1972 - II
III
IV

11,214
9,195
10,564

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PUBLICLY 7 PRIVATELY PFD.
ISSUES INCLUDED
MFG.
STOCK
FOREIGN | CONVERTIBLE
OFFERED 1 PLACED
4, 634
4, 192
4, 158

2,781
1,867
3,147

3, 798
3, 136
3, 258

245
57
245

449
836
428

CROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

2,
,109
,629
1,
,398
1.

3,495
2,680
2,934

,369
1,
856
1,
,079

4,240
4,030
5,151

1973 - I

8,328

2 730

1,626

3 971

n. a.

113

612

2,443

,158
1.

4,115

1972 - Jan.
Feb.
Mar.

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

Apr.
May
June

3,275
3,598
4,341

,622
1,
1,
,676
1,
,336

789
744
1,218

864
,148
1,
,786
1,

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

,118
1,
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
,361
1,
=
1 ,024

564
982
1,601

,454
1,
,034
1,
770

28
124
93

162
171
95

383
426
589

1,280
794
860

371
658
50

1,757
1,499
1,895

33
140
985
200

1,280
955
1,880
1^150

989
1 ,050
2,384
344
14
81
173
1973 - Jan.
641
282
971
1,894
204
Feb. .
27
27
1
1,000
1 ,100
Mar. e( 4,050
n. a.
1 ,950 |
5
235
2,250
800
Apr .5(
650
800 1
n. a. |
0
225
extractive , railroad and other transportation, real estate
i Otiu r issuers are <
and finance, and commercial and other.
Source: Securities and Exchange Commission.. Quarterly supplements are avail-




897
596
950
.425.,

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

!

ISSUER

Gulf Power
Toledo Edison
Hartford Elect Co.
Jones & Laughlin Steel Corp
Seaboard Coastline RR Co.
Excelsior Income Shares, Inc.
Great American Mortgage Invest.
Alison Mtge Investors
Pennzoil Co.
Baltimore Gas & Elec
CNA Income Shares
Dayton Power & Light
Federal Home Loan Mtge Corp

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

25.0
22.3
40.0
40.0
75.0
55.0
25.0
25.0
Debs
Pref s tk 65.0
49.4
Com stk
69.0
Com stk
Pref s tk 25.0
mtge backed
bond s 400.0

Bonds
Com stk
Bonds
1st mtge
1st mtge
Com stk

MATURITY

2003
--

2003
1998
1998
, -"

Mav 1. 19 .72 through May 1;i
COUPON
1
RATE OR
OFFER - MOODY ?
RATING
NET INTERIM:
EST COST
| YIELD
7 1/2
——

7 1/2
8.00
7 3/4
--

7.48
--

7.45
8.07
7.78
8.75
8.75
8.00

7.38

7.38

1976

. 7.05

7.05

1976

7.05

7.05

—
—
—
--

Other
Federal Home Loan Mtge Corp.




Mtge backed
bonds 400.0

--

Aa
Baa
A

--

8 3/4
8.75
8.00

1983
1983

Aa

--

TABLE B: Lartje LOIUI term Public Security Issues for New Capital (continued)
(Otliei than U.S. Treasury) 1

ISSULK

California
New Jersey Turnpike Authority
Pinellas Co., Fla
Detroit, Mich.
Massachusetts
Hawaii, State of
Clacasieu Parish Ind. Dev.
Bd., La. Pol.
Clacasieu Parish Ind. Dev.
Bd., La. Pol.
Tucson Ariz.
Tucson, Ariz.

*
1
2

3

TYPE

2

AMUL'NT
(MILLIONS
OF
DOLLARS)

G.O.
G.O.
G.O.

25.0
210.0
13.0
17.5
10.4
75.0

Rev.

2.4

Rev.
Rev.
G.O.

18.6
2.6
14.1

MATURITY

G.O.
Rev.

1974-1993
2013
1974-2003
1974-1988
1974-2003
1976-1993

May 1 through Mav 4, 1973
COUPON
1
RATE OR
<>ITI:RMOODY'S
NET INTERI;.(
RATING
EST COST
VILLI)

!

4 . 64
5 . 76
5 . 30
5 . 31
4. 75
4. 81

4. 00-5.04
4. 10-5.40
4., 0 0 - 5 . 2 5
4., 1 5 - 5 . 0 5

—

4,. 2 5 - 4 . 9 0

1993

--

--

4..56
5,,15

5.70
4,. 1 0 - 4 . 5 0 I
4 . 0 0 - 5 . 1 0I

1974-1992

3. 9 0 - 4 . 8 5
--

Aaa
A
A
Baa
Aa
A-l

—

A
A

K i ghts o1Ier ing.
Includes corporate and other security offerings of $15 million and over;
State and 1 oval security offerings of $ 1 0 million and over.
'
In case of State and local government securities,! G.O. denotes general obligation;
'<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev . -Q. - lit. , revenue bonds secured only by income from quas i-ut i 1 i t i es ; Kev.-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 Reconstruc t i on and
Development issues and non-quaranteed issues by Federal Agencies.




T A B L E 7:

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

ISSUER
Beneficial Fin.
Mississippi Pwr.
Columbus & Southern Ohio Elec
Columbia Gas
Orange & Rockland
General Public Utilities
Carolina Pwr & Lt.
Con Edison
^Wisconsin Power & Lt.
GTE of Kentucky
^Pacific Tele & Tele
First Penn Corp
Instruments Systems Corp
Pacific Tele & Tele
Pacific Tele & Tele
Potomac Elect Pwr
Louisiana Pwr & Lt.
Georgia Pwr
Fla. Pwr
Fla. Pwr.
Consolidated Natural Gas.
*Consumer Pwr Co.
*Illinois Pwr
*Gen'l Tele of Wise. —
*Duke Pwr.
*American Express Income Shares
*Circle Income Shares Inc.
^Meridian'Income Sec.
*S-G Securities Inc.
*Public Service E&G




AMOUNT
(MILLIONS
TYPE
OF
DOLLARS)
Bonds
75.0
Bonds
15.0
Conv debs
25.0
Bonds
50.0
1st mtge
25.0
Com stk (rts)
83.0
Bonds
100.0
Com stk.
120.0
Pref stk
15.0
Bonds
14.0
Com stk (rts)
30.0
Bonds
60.0
Bonds
25.0
Bonds
200.0
Bonds
100.0
Com stk
65.0
Bonds
45.0
Bonds
115.0
Bonds
60.0
Com stk
50:0 v
Bonds
50.0
Pref stk
75.0
Bonds
50.0
Bonds
25.0
Bonds
100.0
100.0
Com stk
Com stk.
37.5
Com stk.
25.0
Pref stk
60.0
Com stk
108.0

APPROXIMATE DATE
OF OFFERING
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June

15
15
16
16
21
22
22
23
23
24
25
29
30
31
31
5
5
6
7
7
11
12
12
14
14

r
11
T A B L E 7:

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

<c°ntin°ed)

ISSUER

TYPE

State and Local
New York State Dormitory
Auth
Alaska
Philadelphia, Pa.
Massachusetts Health & Ed.
Fac. Auth
? New Orleans, La.
*Dallas, Tex
*New York St. Urban Dev. Corp
*Puerto Rico Industrial Dev.
Co.
San Jose USD, Cal.
, Ohio Pub. Fac. Comm
^Indiana University of Akron,
Ohio
\ Monroe Co, Mich
*Waterbury,,Conn
*Penn State Public Sch. Bldg.
Auth
Austin, Texas
Los Angeles Reg Arpts Corp.,
Cal
Prince Georges Co, Md.Poll
Cont.
Gulf Coast Waste Disposal
Auth, Tex.
Pensacola, Fla.
Lacygne, Kan.
Los Angeles, Calif Dept of
.
Wtr & Pwr.

AMOUNT
(MILLIONS
OF.
. DOLLARS)

May

u >

1973

APPROXIMATE DATE
OF OFFERING

Rev.
G.O.
G.O.

11.5
27.0
53.2

May
May
May

9
15
15

G.O.
G.O.
G.O.
G.O.

10.4
18.0
21.0
200.0

May
May
May
May

16
16
16
16

Rev.
G.O.
Rev.

35.0
13.0
40.0

May
May
May

16
16
22

Rev.
Rev.
G.O.

10.0
51.0
10.0

May
May
May

22
22
23

G.O.
Rev.

18.6
17,. 5

May
May

24
31 .

Rev.

25.5

Rev.

25.0

May

Rev.
Rev.
Rev.

25.0
12.5
30.0

May
May
May

Rev.

47.0

June

1

May

-

6

Included in table frr first time.
Includes corporate and ether issues of 515 million and over; State and local
Government issues of 510 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




12Table 8

STOCK PRICES AND VOLUME
STOCK PRICES1-

TRADING VOLUME2'

DATE
NYSE INDEX 3 -

D J . INDUSTRIALS

65.14(12/11) 1036.27(12/11) 28.53(4/14)
25.61(1/3)
56.23(1/3)
889.30(1/3X

21.8(11/10)
11.2(9.8)

7.4(3/10)
2.6(9/8)

65.48(1/11)
56. 73(4/30)

20.4(1.12)
12.4(4/6),

4.8(1/12)
2.5(5/11)

1973 - High
Low

May

AMEX
6.7(2/5)
2.7(8/13)

57.76(4/18)
48.73(1/4)

1972 - High
Low

950.82(4/28) 26.68(4/28)
797.97(11/23] 222.72(1/4)

NYSE
22.1(2/12)
11.0(9/17)

1971 - High
Low -

1973 - Apr.

AMEX 4 -

1051.70(1/11) , 26.70(1/8)
921.21(4/30) 23.42(5/1)

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

12.4
15.2
13.2
14.5

2.9
3.1
2.7
3.2

4
11

58.77
57.43

953.87
927.98

23.67
23.53

14.5
13.7

3.0
2.5

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.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are 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/
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
20
22-1/2
25

13
TABLE 9: Security Credit

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

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 ' BANKS ? F TOTAL
[
5,700
6,180
6,620
7,010
7,200
7,510
7,600
7,780
7,800
7,800
7,890
7,900

1973 - Jan.

2,910

10,610

300
480
440
390
190
310
150
120
20

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

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

7,700

1973 - Jan.

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

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

--

^

--

:>:ET U RED IT
.
!
CUSTOMERS' ' CUSTOMERS*' NET 'EXTENDED BY
!BROKERS AND
| NET DEBIT ! FREE CREDIT
| DEALERS 3
BALANCES |
i
BALANCES

1

(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

--

2,296

-—

----

--

---

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

;

-

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 dealer's for purchasing or carrying -...verities other than U.S. governments."
The difference between customers' net debit balances and customers' net fivu rvdit 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 bv the New 1'or,
Stock Exchange and are end of month data. Bank loans are for Vvvekly n. porting
large commercial banks. Broker data includes loans for regulated securities; hank
data includes loans for the purpose of purchasing or carrying any security, xvhethrr
regulated or not.
Series discontinued




>

T A B L E 10:

Savings Flows at Nonbank Depositary Intermediaries

($ millions)
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY:
GROWTH
NET
1
FLOW
RATE

SAVINGS & LOAN ASSOCIATIONS
SHARE CAPITAL
NET
ANNUAL
NEW
NET
GROWTH
MONEY'
FLOW
RATE '

1969
1970
1971
1972

2 549
4 517
9 ,621
9 ,788

4. 0
6 8
13 5
12 0

N o t Seasonally Adjusted
4,068
3.1
-1,|003
10,965
8.1
5^285
28,230
19.3
20,653
32,902
19.5
23,884

1972 - January
February
March

855
931
1 ,507

-•

1973 - January
February^/
March£/

766
551
1:
,070

-763
936
5,67-8
5,397

TOTAL

NET
FLOW

ANNUAL
GROWTH
RATE '

6.
,617
15,
,482
37,
,851
42:,690

3. 4
7. 7
17. 5
17. 0

925
780
761
902

.6
12,
10,
.5
10.
,2
. 12.
,0

1973 - January?/
February®/
March®/

808
465
550

10 .6
6,
.1
7 .0

3,266
2,818
4,287

3,117
2,700
2,533

4 :,121
3.
,749
5*
,794

595
402
n.a.

1972 - September
October
November
December

716
809
773

-y
3,278
3,117
-1,905
1,796
n.a.
3,731
Seasonally Adjusted
-2,930
17.8
——
2,706
16.2
——
2,246
13.3
2,164
12.7
--

,044
4,
2 ,456
,801
4;
,855
3,
3,
,486
3,
,007
3,
,066

16.
.2
.5
14,
.3
12.
12,
.5

4,026
1,835
2,430

4,
,834
2 ,300
j
2,
,980

19,
.4
9 .1
11,
.7

—
——
--

_
_
—

---

23.3
10.4
13.7

--

-•

,766
-1,
6,
,231
,331
26,
,281
29.

3 ,833
;
3 ,509
;
3 ,306
3,
,712
2 ,198

Annual growth rate for monthly data is the annualized monthly percentage increase in depus i
Net New Money is new deposits net of both withdrawals and interest. Data for SM.s rf^e lor
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 Hanks and Federal Home Loan Hank Hoard.




N IT
;
NEW
MONEY 5

---—

---

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

1

OUTSTANDING COMMITMENTS
|
NET CHANGE
ALL
ALL
MUTUAL
|
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollar:i, Seasonally Adjusted)r/

DATE

TOTAL

1971-Dec.

16.6

13.1

3.6

.09

1972-Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
j

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
.67
.49
.42
.60
.53
.36
.83
.99
.73
.73
.68

1973-Jan.
Feb.
Mar .

25.9
26.5
26.2

20.8
21.5
21.2

5.1
5.0
5 .0

.98
.59
.57

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)
.15

-.06

^

. 13
.28
.11
. 13
.05
-.07
. 10
:o7,
.22
. 10
.04
.03

.11
.39
.38
.29
.55
.60
.26
.76
.77
.63
.69
. 65

.17
10
- .21

.81
.69
-.36

,

Rased 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
T A B L E 12: Net Change in Mortgage Holdings

TOTAL
INCLUDING
FNMA-GNMA

DATE

FINANCIAL INSTITUTIONS
LIFE
1
MUTUAL
SAVINGS &|
INSURANCE
SAVINGS
LOAN
TOTAL 1 COMMERCIAL
BANKS
BANKS
ASSOC.
, COMPANIES
1
2,052
2,348
1,221

4,375
4,909
2,388

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

3,565
3,678
n.a.

900
900
1,200

458
331
n.a.

2,045
2,428
3,303

162
19

195
66
69

36
387
116
147 292
34
-24
70
96

19,699
16,827
39,259

Dec

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

1973 - Jan
Feb
Mar

3,760
3,744
n.a.

1972 - July
Aug
Sept
Oct

2/
FXMA-CXMA

Not Seasonally Ad lusted
2,682
9,561
5,404
10,172
2,462
1,845
3,938
24,160
9,940

24,074
21,736
41,647

1969
1970
1971

1

Seasonally Ad lusted
1972 - Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
5,697

4,327
4,521
5,060
4,593
5,179
4,714
4,738
5,212
5,601

1,361
1,434
1,489
1,451
1,477
1,155
1,393
1,524
1,164

400
453
516
472
515
537
484
513
525

2,481
2,567
2,959
2,678
3,108
2,911
2,726
2,876
3,130

85
67
96
101
79
111
135
299
782

1973 - Jan
Feb
Mar

4,501
4,371

4,273
4,259
n.a

1,112
1,079
1,262

475
388

2,467
2,730
3,371

219
62
n.a.

1

2

228
112
124

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

T A B L E 13: Net Increases in Mortgage Debt Outstanding '

Billions of dollars, SAAR TOTAL

RESIDENTIAL 3

1- to 4FAMILY

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

1969 - I

32.0
29.1
25.8
25.2

23.8
21.5
18.7
18.5

19.4
16.8
14.0
13.1

1970 - I
II
IIL
IV

20.7
22.9
?8.5
31.8

14.4
16.8
21.3
22.8

1971 - I
II
III
IV

37.5
47.8
52.2
54.2

1972 - I
II
III
IV
1973 - 1-

QUARTER

I I
I I I

IV

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

6.4
6.0
. 6.5
7.4

9.5
9.2
10.1
11.3

2.3
2.2
1.8
1.9

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

9.4
11.6 15 .0
16.2

5.0
5.2
A 1
6.6

4,8
4.6
9 1
6.8

9.8
9.8
11^5
13.4

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

I6'1
18.9
19.8
19.9

2.2
2.3
2.3
2.5

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

80.9

59.7

48.5

1L2

18.1

29.2

3.1

'

1.5
1.5
_2 1
2.2

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 interpolation*
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.




18

TABLE 14:

FNMA BIWEEKLY AUCTION RESULTS (FHA/VA LOANS)

TOTAL OFFERS (MILLIONS $)

YIELD TO FNMA. (PER CENT)

RECEIVED

ACCEPTED

1972 - Oct. 16
30

271.2
186.4

224.9
162.7

7.73
7.74

Nov. 13
27

78.7
60.8

49.2
36.6

7.72
7.70

Dec. 11
26

82.2
108.7

42.4
66.3

7.68
7.69

1973 - Jan.

8
22

74.2
107.0

61.3
92.1

7.69
7.70

Feb.

5
19

128.7
110.3

65.4
71.6

7.71
7.73

Mar.

5
19

170.8
297 .3

107.7
168.7

7.75 •
7.81

Apr.

2
16
30

234.6
216.6
261.2

145.9
190.7
185.9

7.86
7.89
7.92

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 FNM& stock purchase and holding
requirements. Data are for short-term (4 month) commitments.




19

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

$ - January
February
March

j2 ,497
,457
j 2,
2: ,259

UNADJUSTED
^ TYPE OF FINANCING
FHA VA 1
OTHER

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.5

36.1 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

107.3
117.8
155.7
172.9
186.1
184.8
171.9 |
190.8 !
167.3 !
184 . 3
157.8
102.4

2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237
2,265
2,216
2,139
2,377

147.4
139.5

12.0
14.3

6.8
6.8

128.6
118.4

8.3

--

2,218
2,191
2,093

|-

!

2 ,439
2.,540
I 2 ,313
2 ,204
2 ,318
2.
,315
2.,244
July
August
! 2,,424
September i2 ,426
October
,446
(|2,
November
2,
,395
December
2.
,369

I - January
February
March
April
May

|
|
'

x

1,395
1,281
1,310
1,215
1,308
1,283
1,319
1,373
1,382
1,315
1,324
1,207

1,044
1,260
1,003
989
1,011
1,032
925
1,051
1,045
1,131
1,071
1,162

1,450
1,377
1,239

1,047
1,080
1,020

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

TOTAL

SEASONALLY ADJUSTED
ANNUAL RATE
TOTALIi -FAMILY 12 OR MORE

I

!
!

201.2

.

1

Total starts are Census estimates including farm for both permit-issuing and
now-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.

2

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.




20

TABLE 16: Mortgage and Bond Yields

,
DATE

FHA
MORTGAGES
30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
ISSUE
Aaa
UTILITY
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6
.
.

-52
-.36

1971 - High
Low

7.97
7.32

7.95
7.55

.28
-.19

8.26
7.02

1972 - High
Low

7.57
7.45

7.70
7.55

.14
.06

7.40
7.09

.61
.05

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
August
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.
Feb.
Mar.

7.55
7.56
7.63

7.70
7.75

.15
.19
.17

7.38
7.40

.32
.35
.31

1

2

3

4
5
6

7.CO

7.49

Neither mortgage nor bond yields include allowance for servicing costs which arc
much higher for mortgages than for bonds. Generally, bonds pay interest semi
annually; 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.




T A B L E 17: Conventional Mortgage Terms

DATE

1972
Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 4/
Jan.
Feb.
Mar.
Apr.
1

2

3

JNEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
TIVE I (YlARS)
CENT) RATE !
(PER
CENT)
2
1

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

1

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

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
,52
7.
,51
7.
7. 53
7. 55
7. 56
7. 59
7. 57
7. 62
7. 65
7. 66

26 5
27 0
.2
27.
27,
.2
.2
27.
.2
27.
.2
27.
27.
,5
27.
,3
27. 2
27.5
27. 5

75 0
76 5
.2
76.
76.
.0
76.
,2
76.
,5
,0
77.
77. 5
77. 5
77. 3
77. 3
78.0

27. 6
27. 8
28.2
28. 5
2.8.5
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
,2
25.
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
76.2
76.5
76.5
76.3
76.8
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

7.52
7.52
7.51
7.53

1.03
1.15
1.09
1.09

•7. 68
7. 70
7. 68
,70
7.

25.
,7
26. 8
,6
26.
26 .7

76. 6
78. 6
78.4
78.0

27. 0
27. 6
28. 3
27. 7

7.53
7.55

0.94
1.03

7.68
7.72

23 .2
23.6

75.2
77.5

22.6
22.0

7.54
7.54

.95
.97

7.69
7.70

23. 3
.2
24,

76.9
77.5

22.0
23.0

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

4

LOAN
AMT.
($000,

Beginning January 1973, series revised.
to data on or after that data.




Data before January 1973 not comparable

^

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