Full text of H.16 Capital Market Developments : October 15, 1973
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H . W October 1 5 , 1 9 7 3 P r e p a r e d by t h e C A P I T A L MARKETS SECTION in c o n j u n c t i o n with t h e MORTGAGE, A G R I C U L T U R A L , and CONSUMER F I N A N C E SECTION CAPITAL MARKET DEVELOPMENTS DIVISION O F R E S E A R C H AND STATISTICS BOARD O F GOVERNORS F E D E R A L R E S E R V E SYSTEM Washington, D C . 20551 INDEX D E V E L O P M E N T S IN T H E C O R P O R A T E AND M U N I C I P A L 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 M A R K E T SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT AVAILABLE — — DATA DO NOT E X I S T 3 Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET YIELDS WEEK ENDING NEW ISSUE 1 1973 - S e p t . VOLUME RECENTLY OFFERED A a a UTILITY A a a UTILITY 2! GROSS 3 OFFERINGS ($ MILLIONS) PER CENT S O L D BY END OF WEEK NEW ISSUES IN S Y N D I C A T E ($ MILLIONS) 7 . 9 4 8.02 70 79 7 . 7 4 8 . 0 6 150 100 0 21 8.03 8 . 0 3 236 96 10 28 7 . 8 1 7 . 8 4 170 100 ^ 7.75r 7. 90r 350 7.96p Oct. 7 14 7.86 350 83r 15 0 60r 0 100 MUNICIPAL BOND MARKET VOLUME YIELDS WEEK ENDING 1973 - S e p t . 7 5 . 0 0 BOND BUYER 2Q-BOND GROSS OFFERINGS INDEX MOODY'S NEW ISSUE 3 PER CENT S O L D BY END ($ MILLIONS) OF WEEK NEW ISSUES 4 IN S Y N D I C A T E ($ MILLIONS) 134 91 5 . 0 0 5 . 1 8 341 81 89 4 . 9 0 5.05 285 88 58 28 Oct. 5 . 1 8 14 21 4 . 7 0 5 . 0 0 673 82 136 5 12 36 4 . 7 0 5 . 0 4 461 78 177 4 . 7 0 4 . 9 9 302 74 155 - NOTES: 1 Federal Reserve series of implied yield o n newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary t o make coverage of this series consistent with the gross offerings series. H.16 4 Table 2 HIGH GRADE BOND YIELDS 2 1 NEW ISSUE A a a UTILITY DATE RECENTLY OFFERED A a a UTILITY 3 MOODY'S SEASONED U.S. GOVT. 20-YEAR CORPORATE Aaa C O N S T A N T MATURITY - High 8 . 2 6 (7/30) 8.23 (1/1) 7 . 7 1 (8/12) 6.51 (6/18) Low 1971 7.02 (2/5) 7.17 (12/31) 7.06 (2/12) 5 . 6 9 (3/23) 4 5 BOND BUYER 2Q-BOND INDEX 6.23 , ( 6 / 2 3 ) 4.97 ( 1 0 / 2 1 ) - 7.60 (4/21) 7.46 (5/12) 7 . 3 6 ( 4 / 2 8 ) 6.19 (4/14) 5 . 5 4 ( 4 / 1 3 ) 6.99 (11/24) 7.17 (1/7) 7 . 0 5 (12/8) 5 . 7 4 (11/17) 4 . 9 6 ( 1 0 / 2 1 ) High 8.52 (8/10) 8.32 (8/10) 7.77 ( 8 / 2 4 ) 7.79 (8/10) 5 . 5 9 (8/3) Low 1973 - High Low 1972 7.29 (1/21) 7 . 2 8 (1/5) 7 . 1 1 ( 1 / 5 ) 6.42 ( 1 / 5 ) 4 . 9 9 (10/11) 8 . 0 2 7 . 6 4 7 . 2 6 5 . 1 8 7.74 8 . 0 6 7 . 6 3 7 . 3 4 5 . 1 8 8.03 8 . 0 3 7 . 6 5 7.32- 5.05 28 S e p t . 7 . 9 4 21 - 7 14 1973 7.81. 7.84 7 . 6 0 7.13 5 . 0 0 5 7. 75r 7 . 9 0 r 7 . 5 9 7.14- 5 . 0 4 12 O c t . v 7. 96p 7 . 8 6 7 . 5 7p 7.09p 4 . 9 9 $ NOTES) 1 Fedenfl Reserve 2 Fed*rel Reserve series o f implied free-merket yield o n competitively bid Aaa-rated utility b o n d with 5-year call protection released from price restrictions sometime during t h e last 4 Mries o f Implied yield o n newly issued, Aaa-rated utility bond with 5-year call protection. weeks. 3 Weekly average of daily closing figures. 4 Weekly average of dally figures. U.S. Treasury data. 5 Thursday figures. The average rating of t h e 2 0 bonds uaed in this in^ex falls midway between the four t o p groups as classified by Moody's I n v o s W Service. Weekly Bond Buyer data. i H.16 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS 5 IN M I L L I O N S O F D O L L A R S GROSS PROCEEDS 1 CORPORATE PERIOD 1973 1 1972 1 2 S T A T E AND LOCAL 1971 1973 1 1972 1 1971 2,327 1,962 3,933 3,205 3,369 3,229 3,115 3,000 6,075 1,974 1,499 2,451 1,776 2,005 2,239 2,732 1,851 2,258 May June 2,497 2,543 3,558 3,275 3,598 4,341 4,042 3,300 4,375 1,818 1,921 2,072 1,989 2,017 2,270 1,891 2,167 2,013 July 2,470 3,582 2 ,8 9 3 2,720 4,147 2,532 3,768 1,958 1,805 1,966 1,726 1,989 1,903 2,098 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2,264 2,068 9,803 11,214 9,195 10,564 12,190 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 ia,902 24,962 January February March April August September October November December Q1 02 03 8,222 8,598 04 1 s t Half 3 Qtrs. Year 5,924 5,811 < NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. H.I# Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS G R O S S PROCEEDS BY TYPE OF ISSUE PERIOD - II III IV 1973 - 1972 - PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK MEMO ISSUES INCLUDED z CD 1972 G R O S S PROCEEDS BY TYPE OF ISSUER BONDS TOTAL MANUFACTURING PUBLIC UTILITY COMMUNICATIONS OTHW ISSUERS 2,781 1,867 3,147 3 , 798 3 , 136 3 , 258 245 57 245 449 836 428 2 ., 1 0 9 1 , 6 b 1, , 3 9 8 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 I II 8,222 8,598 2, 945 3 345 1,405 2,852 3, 971 2, 407 105 145 112 118 898 1 ,411 2 ,, 4 2 7 2 j, 8 8 6 1,215 964 3,683 3,340 June 4,341 1, , 3 3 6 1,218 1 ,, 7 8 6 130 131 767 1,538 800 1,235 3,582 2,893 2,720 1, , 8 0 7 1, , 5 2 3 863 657 421 789 1 ,, 1 1 8 948 1 ,, 0 7 0 3 17 37 450 183 203 574 452 603 798 635 I, , 2 4 7 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1 ,773 1 ,361 1 ;, 0 2 4 564 982 1,601 1, , 4 5 4 1 ., 0 3 4 770 28 124 93 162 171 95 383 426 589 1,, 2 8 0 794 860 371 658 50 1,757 1,499 1,895 Jan. Feb. Mar. 2,327 1,962 3,933 989 641 1,315 287 316 802 1,050 1 ,004 1 ,817 14 27 64 81 28 3 176 213 509 900 596 931 33 174 1,008 1,218 980 1,485 Apr. May June 2,497 2,543 3,558 938 1,049 1,358 801 673 1,378 758 822 822 63 44 38 25 82 11 282 399 730 519 771 1,596 258 374 332 1,439 1,000 901 July - 4 , 634 4 , 192 4 , 158 July Aug. Sept. 1973 11,214 9,195 10,564 2,470 855 869 746 77 0 523 862 296 789 NOTES: 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon available information. LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 October 1 t h r u October 12, 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD 7.75 7.74 7.80 7.67 A Aaa 8.40 5.00 8.38 8.40 5.00 8.38 A MOODY'S RATING CORPORATE C a r r i e r Corp. Southwestern B e l l T e l . Co. P h i l a d e l p h i a E l e c . Co. Puget Sound Pwr.& L t . Con Edison Co MGIC INV Corp MGIC INV Corp S.F. debs Debt Com s t k Com s t k 1 s t & r e f mtg Conv sub deb S . F . debs 50.0 300.0 96.3 15.0 150.0 100.0 100.0 2013 i — «- 2003 1993 1988 __ NOTES: * Right* offering. 1 Includes corporate and other security offerings of $15 million and over. H.16 Teble 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 October 1 t h r u October I I T 1973 AMOUNT (MILLIONS OF DOLLARS) ISSUER COUPON RATE OFFERING YIELD MOODY'S RATING STATE AND LOCAL Michigan S t a t e Housing* Dev. Auth Lucas C o . , Ohio Lucas C o . , Ohio Lucas C o . , Ohio King C o . , Wash. Richmond Metro Auth. Allegheny Co N.Y. Housing Dev. Corp. F a i r f a x C o . , Va. M i n n e s o t a , S t a t e of Colorado S p r i n g s , Colo. O r l a n d o , F l a . U t i l i t i e s Comm. Ohio A i r Qty. Dev. Auth. N o r t h e r n Ky. S t . C o l l G.O. 1 1 s t mtg t e v 1st mtg rev 1st mtg r e v Ref Rev P o l l cont rev G.O. G.O. G.O. G.O. Rev P o l l cont rev Rev 70.0 18.2 5.0 5.8 30.4 73.3 16.0 63.0 32.0 30.0 15.0 15.0 18.5 12.6 1974-2016 2004 1992 1974-1986 1974-2011 1974-2023 2003 1974-2023 1974-1993 1974-1993 1974-1993 1975-2003 1998 1975-2013 __ - — - — — 5.85 —— 5.85 4.66 4.48 4.45 4.88 6.62 5.73 : NOTES: 1 Includes state and local security offerings of $10 million and over. 2 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed i^ues by Federal Agencies. 4.60-5.75 6.00 5.90 5.00-5.40 4.50-5.50 5.00-5.90 A - ——— - - Baa-•1 —— 5.00-5.90 4.30-5.50 4.20-4.70 4.00-4.70 4.10-5.30 6.50 4.60-6.10 Baa-•1 Aa Aaa Aa Aa Baa Baa-•1 Table 6A • 9 FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY as of October 12, 1973 ISSUER TYPE 1 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE F l o r i d a Pwr. & L g t . Bunker H i l l Income S e c u r i t i e s , I n c . C e n t r a l Pwr. & L i g h t Co. Pac. Gas & E l e c t r i c F l o r i d a Pwr. & L g t . ^Commonwealth Edison M e t r o p o l i t a n Edison 3oston Edison Co. New Bedford Gas & Edison L t . Co. Mass. E l e c . Col Rochester Gas & E l e c . Co P u b l i c S e r v . E l e c . & Gas Co. ^Consumers Power Co. Northern S t a t e s Pwr. Pennsylvania Power & L g t . Co. C&P T e l e . Co. of Wash. * F i r s t Va. Mtg. & Real E s t a t e Inv. T r s t . General Motors Acceptance Corp. C a r o l i n a Telephone & T e l e . Co. Inexco Oil Investors Diversified L i o n e l Edie Cap. Fd. T o t a l Petroleum L t d . P u b l i c S e r v i c e Co. of I n d i a n a ^Wisconsin Power & L i g h t Coi * C e n t r a l I l l i n o i s P u b l i c S e r v i c e Co. Georgia Pwr. Co. Georgia Pwr. Co. C a r o l i n a Pwr. & L i g h t Co. Dayton Pwr. & L i g h t Co. J . P . Morgan & Co. Chrysler Corporation *New England E l e c t r i c System * D e t r o i t Edison CO. Pfd s t k Com s t k Bonds Pfd s t k Com s t k 1 s t mtg Pfd s t k Com s t k Notes Pr e f s t k Com s t k Bonds Pr e f s t k Com s t k ( r g t s ) Com s t k Bonds , Sr sub n o t e s Deb Deb Com s t k Bene i n t Com s t k Com s t k Com s t k Com s t k Pref stk Bonds Pfd Com s t k Bonds Conv debDebs Com s t k Com s t k 40.0 55.0 51.0 50.0 43.0 125.0 15.0 31.0 20.0 20.0 20.9 100.0 55.0 51.4 44.5 60.0 20.0 200.0 30.0 15.4 12.0 105.0 15.0 40.0 15.6 15.0 15.0 25.0 80.0 40.0 150.0 150.0 30.0 80.0 October October October October October October October October October October October October October October October October October October October October October October October November November November November November November November November November November November 15 16 16 17 17 18 18 23 . 24 24 24 29 30 30 30 31 1 1 1 7 7 8 8 NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.1S FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY as of October 12, 1973 ISSUER TYPE 1 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL Aurora, Colo. Romulus, M i c h . , Coram S/D Oakland U . S . D . , C a l i f . Vermont New York C i t y Los Angeles Co. Flood Cont. Dist., Califc San Antonio, Texas KnoxvilLe, Tenn 0 K n o x v i l l e , Tenn. N a s h v i l l e & Davidson Co e , Tenn. Metro. Govt. J a c k s o n C o . , Miss. C a l i f o r n i a , S t a t e of Kansas Barton Co, Dev. Auth., Ga„ B a l t i m o r e Co„, Mde *0hio L a n s i n g , Mich. E a s t Chicago, Ind„ S a c . , C a l i f . Muni. U t i l . D i s t , * D i s t c of Columbia *New England Power Co. Maryland Dept. of T r a n s . Rev G.Oo G.O. G.O. G.O. Rev G.O. Elec. rev Rev Rev Rev Bonds Rev P o l l cont r e v P o l l cont r e v Rev Rev Rev Rev G e 0. 1 s t mtg Rev 9.9 11.5 10.8 15.0 369.8 October October October October October 15 15 15 16 16 27.0 15.0 10.0 10.0 October October October October 10 18 23 23 October October October October October October October October October November December December December 23 24 30 31 26.5 17.0 100.0 40.0 41.0 42.0 18.5 14.0 12.5 50.0 65.1 40.0 47.2 14 1 11 11 NOTES: 1 Includes state and local government issues of $ 1 0 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES DATE N Y S E INDEX 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 1973 - High Low 3 DJ INDUSTRIALS 1 AMEX 4 1 2 T R A D I N G VOLUME NASDAQ NYSE 950.82(4/28) 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) | AMEX | NASDAQ 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 56.23(1/3) 889.30(1/3) 25.61(1/3) 114.88(1/7) 21/8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 53.36(7/6) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.39(7/5) 21.5(9/28) 10.2(7/6) 4.8(1/12) 1.5(8/24) 10.4(1/12) 4.0(7/6) 1051.70(1/11) 851.90(8/22) 8.9(12/30) 5.1(11/26) Sept. 7 14 21 28 56.12 55.92 57.73 58.51 898.63 886.36 927.90 947.10 101.58^ 99.77 102.75 105.41 107.02 106.07 109.46 111.20 14.9 12.4 21.2 20.4 •2.1 2.1 3.4 3.3 5.6 4.9 7.2 6.8 Oct. 5 12 59.34 971.25 978.63 106.47 109.82 112.56 114.10 19.6 19.5 3.8 3.7 7.1 6.9 \ 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays 2 514 From January 3. 1969 July 7, 1969 January 2, 1970 Through July 3, 1989 December 31, 1969 May 1, 1970 Hours/Day 4 4% 5 3 12/31/65 = 50 4 Average dollar value of shares listed. 5 AMEX Market Value I n d e x r e p l a c e s AMEX P r i c e Level I n d e x . - » - *V - 5 d , „ p., or 27'A „ o u r . Days/Week Hours/Week 5 5 5 20 22% 25 Table 8 SECURITY CREDIT 19 R E G U L A T E D M A R G I N C R E D I T E X T E N D E D BY END OF PERIOD B R O K E R S ON MARGIN STOCK 1 BROKERS ON 2 CONVERTIBLE BONDS BANKS OTHER SECURITY CREDIT AT BANKS . UNREGULATED 31 NONMARGIN STOCK CREDIT AT BANKS OUTSTANDING July 7,660 248 979 1,772 1,285 Aug. 1972- 7,780 246 1,032 1,800 1,298 Sept. 248 1,008 1,871 1,255 7,800 250 943 1,875 1,351 Nov. 7,890 249 902 1,871 1,296 Dec. 7,900 254 865 1,896 1,528 Jan. 7,700 249 865 1,940 1,484 Feb. 1973- 7,800 Oct. 7,500 248 867 1,954 1,508 7,200 Mar. Apr. 1 May 244 879 1,566 1,917 7,040 232 872 1,969 1,482 6,540 224 866 2,010 1,502 June 6,180 215 871 1,964 6/ July Aug. 6,010 216 n. a. n, a. 6/ 5,830 210 n . a . n.a. 6/ 150 4 24 128 C H A N G E IN O U T S T A N D I N G 1972 - July Aug. 1 1 f N 120 -2 53 28 20 — 2 -24 71 Oct. 2 -65 4 Nov. 90 -1 -41 -4 45 Dec. 10 5 -37 25 132 44 -44 Sept. 1973 - 13 - 43 96 Jan. -200 -5 Feb. -200 -1 2 14 Mar. -300 -4 12 -37 58 Apr. -160 -12 -7 52 32 ' 24 May -500 -8 -6 41 20 June -360 -9 -5 46 6/ July Aug. -180 -70 1 -6 n.a. n.a. 6/ n.a. n.a. 6/ NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 6 0 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or carry margin stock if these are unsecured or secured^entirely by unrestricted collateral. 6 Discontinued. H.16 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN M I L L I O N S O F D O L L A R S MUTUAL SAVINGS BANKS REGULAR D E P O S I T S DATE NET FLOW ANNUAL GROWTH RATE S A V I N G S & LOAN A S S O C I A T I O N S 1 NET 3 2 NEW MONEY SHARE CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY TOTAL 2 DEPOSITS ANNUAL 3 GROWTH RATE NET FLOW NET NEW MONEY 2 NOT SEASONALLY ADJUSTED 1970 4,517 6.8 936 10,965 8.1 5,285 15,482 7.7 6,221 1971 9,621 13.5 5,678 28,230 19.3 20,653 37,851 17,5 26,331 1972 9,788 12.0 5,397 32,902 19.5 23,884 42,690 17.0 29,281 868 3,738 1,626 4,874 414 293 2,290 2,159 2,872 1,801 1,708 1972 - - June 1,136 July 582 419 — - June 823 -- -35 July -412 — — -603 Aug. 1973 Aug. p -425 -575 3,277 -225 __ 890 . 2,494 2,573 855 4,100 -291 -633 -915 -1,186 -1.209 SEASONALLY ADJUSTED -1,611 -1,784 465 6.1 __ 1,834 10.4 __ 2,299 9.1 579 7.5 —— 2,401 13.5 - - 2,980 11.7 Apr. 387 5.0 —— 1,259 7.0 - - 1,646 6.4 - - May - Feb. Mar. 1973 450 5.8 - — 1,929 10.7 — 2,379 9,2 -- w 2,395 13.2 —— 3,085 11.8 -- 535 2.9 336 1.3 -242 -1.3 -279 -1.1 690 July Aug. p 8.8 -200 -2.5 -37 - 0 . 5 - - - —— NOTES: 1 • Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 9 6 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.1S I Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED NET CHANGE OUTSTANDING COMMITMENTS PERIOD TOTAL ALL SAVINGS MUTUAL SAVINGS BK!3 & LOAN ASSOCIATIONS (N Y. STATE ) TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N Y. STATE) ( B i l l i o n s of D o l l a r ; 3, S e a s o n a l l y A d j u s t e d ) .r / 1971 - Dec. 1972 - J a n . Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar . Apr. May July Aug 17.7 14.0 3.7 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 25.9 26.6 26.1 25.3 24.6 24.2 22.9 21.9 20.8 21.6 21 .3 20. 7 20.1 19.8 18.6 17.8 5.1 5.0 4.8 4,6 4.5 4.4 4.3 4.1 .38 .21 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 - .07 .10 .07 .22 .10 .04 .03 .98 -62 - .54 -.68 -.84 -.38 -1.25 -.94 .81 .74 -.32 -.53 -.67 -.29 .17 -.12 -.22 -.15 -.17 -.09 -1.15 - .79 -.10 -.15 .59 NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded endof period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES 1971 - Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -439 -696 -388 -483 +604 +335 +453 +942 -96 +563 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 1973 - J a n . Feb. Mar. Apr. May June +131 +452 +582 +1,267 +1,769 +740 INTERMEDIATE AND LONG-TERM I S S U E S TOTAL -100 -451 -453 -136 +411 +200 +526 +849 .+300 +500 FHLB -450 -651 -452 -337 -39 -87 -28 +200 -250 — +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 -403 -2 -1 -200 -1 -1 -1 - - +103 +337 -1 +251 -1 +1,195 +1,200 +600 NOTES: Based on d a t a from t h e T r e a s u r y Survey of Ownership. - - — +300 —- —— — — +122 +312 +378 +1,303 +1,600 +961 FHLMC —— +200 — +500 - - FNMA +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 __ +602 +250 —— -1 +814 — —— — —— — +100 -150 -1 +400 — -25 + 76 +116 +51 — +1 +400 +6 +10 +379 +107 +361 SHORT-TERM DISCOUNT NOTES -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +9 +140 +204 -36 +169 -221 T a b l e 12 NET CHANGE IN MORTGAGE HOLDINGS IN M I L L I O N S O F D O L L A R S TOTAL INCLUDING FNMA-GNM/ PERIOD FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS Not MSB's S & L's Seasonally INSURANCE FNMA-GNMA COMPANIES Adjusted 1969 24,074 19,699 5,404 2,682 9,561 2,052 4,375 1970 21,736 16,827 2,462 1,845 10,172 2,348 4,909 1971 41,647 39,259 9,940 3,938 24,160 1,221 2,388 1972 57,107 55,081 15,999 5,377 31,982 1,723 2,026 1972 - Aug 553 3,313 97 168 4,918 1,400 502 2,926 90 137 4,684 1,400 472 2,673 139 95 5,114 4,984 1,500 517 2,712 255 130 Dec - 1,600 5,286 4,779 Nov 1973 5,563 Sept Oct 5,931 5,964 5,831 1,000 598 3,121 1,112 133 Jan 3,760 3,565 900 458 2,045 162 195 Feb 3,454 3,388 900 331 Mar 4,913 4,844 1,200 4,364 4,368 1,200 506 2,128 May- ' 29 66 2,999 568 Apr 77 69 2,991 -329 4 5,390 1,600 562 3,250 142 -164 6,164 1,700 649 3,301 514 255 5,482 J u l y Aug 5,554 6,419 4,875 1,300 557 2,689 329 -- 2,505 -- -- -- -Seasonally 1972 - A u g Adlusted 5,368 5,142 1,444 516 3,097 85 4,907 Sept 607 ^.845 4,651 1,154 503 2,874 120 226 256 Oct - 4, 785 1,393 501 2,769 122 5,260 5,186 1,535 510 2,876 265 74 Dec 1973 4,746 Nov 5,590 5,481 1,244 517 2,950 770 109 220 Jan - 39 4,730 4,510 1,159 501 2,620 230 Feb 4,442 4,306 1,116 437 2,650 103 Mar 4,999 4,865 1,254 556 2,947 108 134 4,492 4,355 1,201 555 2,870 -271 137 Apr . May 5,301 5,326 1,490 562 3,089 185 June 5,713 5,381 1,485 572 2,770 554 J u l y 5,266 4,706 1,209 542 2,604 351 Aug 2,283 136 - 25 332 560 699 NOTES: 1 Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance 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 f o r 8 9 p e r cent of the net increase estimated for all holders in 1 9 7 . 2 . 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 NET INCREASE IN MORTGAGE DEBT OUTSTANDING 1 IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES RESIDENTIAL QUARTER MULTFAMUr TOTAL TOTAL 1- t o 4 FAMILY MULTIFAMILY 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4. 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 6.4 6.0 6.5 7.4 9.5 9.2 10.1 11.3 2.3 2.2 1.8 1.9 1969 - I II III IV 32.0 29.1 25.8 25.2 23.8 21.5 18.7 18.5 19.4 16.8 14.0 13.1 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 9.4 11.6 15.0 16.2 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1.5 1.5 2.1 2.2 1971 - I II III IV 37.5 47.8 52.2 54.2 27.3 36.0 38.9 40.7 19.2 26.5 30.1 31.9 8.0 9.4 8.8 8.9 8.1 9.5 11.1 11.0 16.1 18.9 19.8 . 19.9 . 2.2 2.3 2.3 2.5 1972 - I II III IV 62.4 64.9 65.2 68.4 45.4 47.1 47.3 50.6 35.9 37.5 38.5 40,2 9.5 9.6 8.8 10.4 14.5 15.2 15.2 15.4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 1973 - I II 77.9 76.7 58.1 55.6 45.7 43.3 12.4 12.3 15.8 17.3 28.2 29.6 4.0 3.9 COMMERCIAIL & COMMERCIAIL FARM NOTES: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, ' Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. H.I6 T a b l e 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S O F U N I T S , S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S PERMITS!/ PERIOD TOTAL 1—FAMILY I \ COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY 2 - O R MORE FAMILY TOTAL 1 —FAMILY MOBILE HOITu 2 - O R MORE SHIPMENTS FAMILY 1969 1,322 626 696 1,500 811 656 1,399 808 592 413 ; 1970 1,352 647 705 1,467 813 898 1,452 802 617 1,740 1,014 692 401 497 ' 1 2,002 1,145 829 576 1 1971 1,952 928 1,025 2,085 1,151 901 1972 2,219 1,033 1,186 2,379 1,309 1,048 1972 - August . 2,281 1,065 1,216 2,424 1,373 1,051 1,973 1,210 763 534 September 2,366 1,029 1,337 2,426 1,382 1,045 1,972 1,118 853 494 October 2,318 1,138 1,180 2,446 1,315 1,131 1,945 1,156 789 548 November 2,226 1,013 1,213 2,395 1,324 1,071 1,980 1,153 828 666 1,207 1,162 2,147 1,168 980 606 December 1973 - January 2,399 1,001 1,398 2,369 2,233 1,062 1,171 2,497 1,450 1,047 2,147 1,324 823 648 February 2,209 1,079 1,130 2,456 1,372 1,084 2,033 1,259 774 642 March 2,129 1,022 1,107 2,260 1,245 1,015 2,162 1,310 851 737 April 994 2,123 1,202 921 2,067 1,168 899 680 1,939 945 May 1,838 954 884 2,413 1,271 1,142 2,168 1,285 883 661 June 2,030 934 1,096 2,128 1,124 1,004 2,159 1,279 879 616 July 1,780 876 2,176 1,238 938 1,977 1,036 941 569 August 1,706 904 805 901 2,045 1,126 919 . NOTES: Private building permits (for 14,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit i$ started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. 1/ Data f o r 1 9 6 9 a n d 1970 based on 13,000 permit-issuing places. ! Table 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL LOANS PRIMARY MARKET EXISTING HOMES 1 NEW HOMES PERIOD RATE (IN PER CENT) 1 SPREAD BETWEEN NEW Aaa RETURNS ON UTILITY CONVENTIONAL BOND AND HUD(FHA) YIELD NEW HOME DISCOUNT (PERCENTAGE MORTGAGES (IN PER CENT) (BASIS POINTS) POINTS) HUD(FHA) INSURED LOANS SECONDARY MARKET NEW HOMES 1 SPREAD (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) 28 01 8.04 7.28 14 06 7.45 7.09 4.4 4.5 4.6 4.7 4.7 4.6 11 10 14 13 13 14 7.38 7.37 7.40 7.38 7.09 7.15 4.5 4.6 5.2 5.9 6.4 7.2 9.4 15 19 17 17 16 16 21 7.38 7.40 7.49 7.46 7.51 7.64 8.01 1971 - High Low 7.95 7.55 52 01 8.05 7.65 62 06 7.97 7.32 31 07 7.8 2.7 1972 - High Low 7.70 7.55 61 15 7.75 7.60 66 20 7.57 7.45 48 05 4.7 3.7 1972 - J u l y Aug Sept Oct Nov Dec 7.65 7.65 7.70 7.70 7.70 7.70 27 28 30 32 61 55 7.70 7.70 7.75 7.75 7.75 7.75 32 33 35 37 66 60 7.54 7.55 7.56 7.57 7.57 7.56 16 18 16 19 48 41 1973 - J a n Feb Mar Apr MayJune July Aug 7.70 7.75 7. 80 7.90 7.95 8.05 8.40 8.85 32 35 31 44 44 41 39 49 7.75 7.80 7.85 7.90 8.00 8.10 8.40 8.85 37 40 36 44 49 46 39 49 7.55 7.56 7.63 7.73 7.79 7.89 8.19 17 16 14 27 28 25 18 . 8.36 NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. H H.ie Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN DATE O F AUCTION AMOUNT (IN M I L L I O N S O F D O L L A R S ) OFFERED 1973 - J a n Feb Mar Apr-. 2 8 22 5 6 19 21 5 6 19 21 | AVERAGE YIELD ACCEPTED AMOUNT (IN M I L L I O N S O F D O L L A R S ) OFFERED 39.4 74.2 107.0 61.3 92.1 7.69 7.70 128.6 65.4 | AVERAGE YIELD ACCEPTED 25.5 7.84 7.71 —— -- -- -- -- 62.9 7.89 100.9 -- -- 110.3 71.6 7.73 -- -- -- 170.8 107.7 „„ -- -- 66.0 49.6 7.92 7.95 7.75 - - 297 .3 168.7 60.3 7.81 44.3 - — -- -- -- — -- 86.8 56.4 8.02 111.9 81.6 8.11 -- 2 3 16 17 30 261.2 185.9 14 29 258.3 212.4 June 11 25 July 234.6 -- 145.9 - - 7.86 —— 216.6 190.7 7.89 -- -- -- -- -- 7.92 111.0 128.9 88.4 88.2 8.17 8.23 187.7 140.0 7.96 8.00 117.6 113.3 84.4 74.0 8.31 8.39 184.5 199.3 142.2 118.7 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 9 23 539.0 351.4 244.8 181.4 8.38 8.54 108.4 119.0 72,5 61.7 8.67 8.79 Aug. 6 20 458.5 525.0 201.9 223.8 8.71 8.95 154.3 171.3 77.4 77.2 8.98 9.27 Sept. 4 17 551.0 138.1 288.9 107.9 9.27 9.37 118.6 48.6 61.5 46.8 9.53 9.68 Oct. 1 32.5 24.1 9.11 9.1 7.1 9.43 May- - - NOTES: Average secondary market yields are gross before deduction of the fee of 3 8 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total b i d s r e c e i v e d . H.16