Full text of H.16 Capital Market Developments : October 26, 1970

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L . 5 . 8 Confidential, (F.R.)

DECONTROLLED! AFTER SIX MOHTHS
LIBRARY

-

•

.

OCT 2 9 m
FEDBRAL RESEBUS *KKK
OF RICHMOND

CAPITAL
MARKET
ELOPMENTS

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

. 6-7

Capital Market Yields

8-13

Capital Market Volume

14-17 Stock Market
18-33

Mortgage Market

SYMBOLS:
e Estimate
p Preliminary
r

Revised

n o. Not available




3
TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

WEEK ENDING:

1970 - Sept.
11
18
25
Oct.

2
9
16
23
30

WEEK ENDING:

1970 - Sept.

Oct.

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

8.40
8.52
8.50
8.35

8.13
8.13
8.09
8.06

511
372
305
812

8.37
8.35
8.53
8.64

8.05
8.02
8.01
8.03

495'
469
490
652
. 85 Oe

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

74
97e
87
80
70
81
@9
88
n.a.

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

976
1,361
1,350
1,379
1,178
1,179
1,237
1,617

BONDS SCHEDULED
WITHIN 28 DAYS

4
11
18
25

5.70
6.00
5.96
5.95

6.16
6.30
6.26
6.28

186
213
676
324

62
47
83
75

919
1,147
851
1,184

2
9
16
23
30

6.15
6.15
6.10
6.10

6.39
6.38
6.35
6.45

346
450
346
645
556e

77
. 71.
68
59

1,516
1,148
1,138
934
n,a

....

*

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
wit1, call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




TABLE 2: Details on Inventories

DATE '
OFFERED

AMOUNT
(MIL. $)
82.0
25.0
25.0
125.0
125.0
15,0
100.0
20.0
50.0
50.0
25.0
15.0
15.0

10/22
10/22
10/22
10/22
10/22
10/21
10/20
10/19
10/15
10/14
10/14
10/8
9/29

OFFERED

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

DATE
| RELEXSED

10/13
10/14
10/20

10/21
10/22
10/22

Pan Am
James Talcott
Skelly Oil
Sears Roebuck
Sears Roebuck
Wisconsin Gas
Singer
Mass Elec
Clark Equip Credit
Dresser Indus.
Morton-Norwich
Montana Dak Util
Elizabethtown Gas

\

11-1/4
9-3/4
8.15
8.13
8.63
10.75
8.25
8.50

11.25
9.75
8.15
8.15
8.67

9-3/4
8-7/8
9-1/4
9-1/4

9.38

8.80

10.60
8.25
8.25

8.80
8.88
9.15
9.32

Baa

16 yrs

Aa
Aa
A
Ba
A
A
A
Baa
A
A
A

5
6
5
5
5
5
5
10
10
5
5

ESTIMATED PROPORTION SOLD
807=
70%

80%

yrs
yrs
yrs
yrs
yrs
yrs
yrs
yrs
yrs
yrs
yrs

98%
85%
70%
90%
40%

60%
98%
95%

60%
50%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING A N D ESTIMATED PROCOUPON
ISSUER
IN YIELD CALL PROT. PORTION RELEASED
YIELD

AMOUNT
25.0
175.0
70.0

DATE
1970 - Sept. 18
25
Oct.
2
9
16
23P

Texas Elec.
Pacific Tel & Tel
Appalachian Pwr

8-7/8
8-3/4
8-5/8

INVENTORIES 1 «
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
571
618
607
645
635r
787

201
197
151
202
177
372

8.73
8.76
8.35

+14
+10
+20

Aaa
Aaa
A

5 yrs
5 yrs
5 yrs

35%

10%
20%

CORPORATES
IN SYNDICATE

:

41
153
179
95
93
112

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
of three days ended Wednesday. All other figures are as of Friday.


which is daily average


*

BONDS IN SYNDICATE
Friday figures

Millions of dollars

I

I

I

I

I

I

I

200
100
LilMlLtlMllIm

i

i

i

i •i

n

r~i—i—r

MUNICIPAL BONDS IN SYNDICATE

1,1111 III
I

1

0
I

I

I
300

200
100

SEPT.

DEC.

'68




JUN.

1969

SEPT.

DEC.

_J
JUN.

1970

SEPT.

DEC.

0

TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aai 1

MOODY'S SEASONED\
CORPORATE
X
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1968 - High
Low

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

6.55 (1/27)
5.95 (9/13)

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

4.85 (1/26)
4.07 (8.8)

1969 - High
Low

8.83 (12/5)
6.90(2/21)

7.84 (12/26)
6.55 (1/13)

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

6.90 (12/18)
4,82 (1/28)

1970 - High
Low

9.30 (6/19)
8.20 (2/27)

8.60 (7/3)
7.79 (3/6)

7.55 (5/29)
6.60 (3/6)

7.12 (5/29)
5.95 (3/12)

25

8.35

8.06

6.77

6.28

2
9
16
23

8.37
8.35
8.53
8.64

8.05
8.02
8.01
8.03

6.81
6.79
6.85
6.94

6.39
6.38
6.35
6.45

1970 - Sept.
Oct.

1

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




HIGH GRADE BOND YIELDS




NEW CORPORATE Aaa

MOODY'S V X
CORPORATE Aaa
US. GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

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

1

STATE AND LOCAL 2

1970

1969

1968

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

April
May

3,170
3,909
3,389e

2,748
2,076
2,530

1,428
1,866
2,411

July
August
September

2,648
2,550e
3,600e

2,478
1,427
2,427

October
November
December

4,000e

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Tht -e quarters
Year

1970

1969

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

1,646
995
1,070

1,801
1,110
737

1,318
1,143
1,395

2,143
1,432
1,557

1,306
1,342
l,650e

1,097
808
559

1,469
1,699
1,444

1,933
2,375
2,532

2,129
1,767
2,054

1,800e

1,280
886
816

2,230
1,021
1,115

7,977
10,468
8,798e

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

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

4,105
3,711
4,298e

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

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

18,445
27,243e

13,572
19,904
26,744

10,882
16,015
21,965

6,435
8,899
11,881

7,956
12,008
16,574

1

7,816
12,114e

1968

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

Quarter
Quarter
Quarter
Quarter

Year

6,170
7,037

5,107
5,427
4,785
5,654
20,973

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




-

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

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

'.U '
1,126
750
809

1,773
1,862
1,314

1,878
1,544
1,967

432
684
598

3,266
2,243
2,961

922
710
267

2,584
2,445
2,327

2,085
2,812
2,637

1
766
2,162
1,274

2,543
3,048
2,560

369
105
303
401

625
260
453
601

544
7,45
622
600

272
120
201
277

984
808
1,099
1,054

1,595
516
525
61
387
811
639
1
1,068
266
468
33 .
249
,357
540
1,914
471
1,154
128
286
1,416
906
2,022
447
701
89
398
689 1,109
3,041
399
468
20
230
600
817
1
1,931
436
1,021
26
82
1,103
1,831
842
577
580
68 ;
10,7:
1,150
400
850i > 600
400
69
Se
/
2,400
500
pt-- 3,600
700
n.a.
100
900 > 4 9 5
: '.-/«? v.
"'v
I
•'
Other issuers are extractive, Railroad and other transportation, real estate
and finance, and commercial and other;
\ . • >•! v
c
^
i •
Source: Securities and Exchange Commission. Quarterly supplements are available.

234
226
306
, 62
1,747
353
144
375
755

1969 - II
III
IV
1970 - I
116
Ille
1969 - Sept.
Oct.
Nov.
Dec.

7,354
6,332
6,840

3,411
3,186
3,479

1,673
1,347
1,053

2,268
1,797
2,307

277
289
115

7,977
10,468
8,798

4,577
6,994
5,981

1,235
1,282
1,136

2,147
2,190
1,680

222
135
n.a.

2,427
1,933
2,375
2,532

1,222
969
1,164
1,346

479
313
226
514

726
651
984
672

2,636
1,802
3,539
3,170
3,909
3,389
July e/ 2*648
2,550

1970 - Jan.
Feb.
Mar.
Apr.
May,

1

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


i
.


m

35
59
8
48

'

m

....

N

952
680
' 911
1,310
744
/ 994
1,085
725
750

.

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

'

Oct.
AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE 2

ISSUER

MATURITY

COUPON
KATE OR
NEl INTEREST COST

1 thru O c t . 2 3 . 1970
•
OFFERING
YIELD

r

Corporates

American Elec. Power
First Denver Mtg. Investors
Jersey Central Pwr. & Lt. Co.

x

United Utilities, Inc.
Mass. Mutual Mtg. & Realty
Investors

com. stk
benf. int.
cum. pref.
stk.
cum. stk

99.5
30.0
25.0
33.8

conv. sub.
debs.
50.0
Otis Elevator Co.
debs.
50.0
1st. Mtg
Montana-Dakota Utilities Co.
15.0
Southern Calif. Gas. Co.
1st. Mtg
55.0
Wisconsin Pwr. & Lt. Co.
25.0
1st. Mtg
Weyerhaeuser Co.
debs.
150.0
Weyerhaeuser Co.
notes
50.0
*Public Service Elec. & Gas Co. com. stk.
67.9
Connecticut Lt. & Pwr. Co.
1st. Mtg
40.0
Connecticut Lt. & Pwr.
pref. stk. 20.0

.
.
.

Pacific Tel. & Tel. Co.
.Morton-Norwich
1
Cummins Engine Co.
Texas Electric Ser. Co.
Dresser Industries Inc.
Rex Chainbelt Inc.
Carolina Pwr. & Lt. Co.
Clark Equipment Co.
General Mills Inc.
Pan American World Airways
Massachusetts Elec Co
Pitney - Bowes Inc.
Sears, Roebuck & Co
Sears, Roebuck & Co




debs.
175.0
debs.
25.0
debs.
30.0
bds.
25.0
S.F. debs. 50.0
S.F. debs. 30.0
*6um. stk
28.8
debs.
50.0
S.F. debs. 100.0
Gtd Loan
81.5
ctfs
20.0
1st mtg
debs
50.0
S.F. debs 125.0
125.0
notes

__
--

M—

-*•

--

-» —

--

—* .

1990
1995
1990
1995
2000
2000
1976
—

2000
• —

2006
1995
1995
2000
1995
1995

6.75
6.50
9.25
8.85
8.88
8.63
8.13

6.75
6.50
9.15
8.85
8.85
8.63
8.13

Baa
A
Aa
Aai
A 1
A

8.88

8.75

Aa

--

—W

8.75
8.88
8.88
8.88
9.38
8.95

8.76
8.88
9.00
8.73
9.38
8.95

Aaa
A
A
Aaa
Baa
A

A
Baa

__

——

—

1976
1995
1986

8.80
8.88
11.25

8.80
8.87
11.25

1975
1995
1995
1975

8.50
9,00
8.63
8.13

8.25
9.05
8.67
8.15

/

MOODY '
RAT 1N (.

A
A
Aa
Aa

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)1
Oct 1. thru (3et 234 1970
TYPE 2

IIP

ISSUER

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

OFFERING
YIELD

MOODY':.
RATINC

Corporates (cont'd)
Skelly Oil
James Talcott Inc.
*Xerox Corp .
Singer Co
Appalachian Power Co
New Jersey Natural Gas
Wisconsin Gas Co




debs
notes
conv debs
debs
1st mtg
1st mtg
debs

25.0
25.0
155.6
100.0
70.0
15.0
15.0

1976
1976
1995
1976
1976
1995
1990

8.15
9.75
6.00
8.25
8.63
9.25
10.75

8.15
9.75
6.00
8.25
8.35
9.30
10.60

Aa

A
A
A
Ba

X

• " • • •

\

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

§
,
Oct. 1, thru Oct. 23, 1970

.
TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

Hudson County, N.J.
Alaska State Housing Auth.
Maryland, State of
Coastal Industrial Wtr. Auth.
Texas
University of Houston, Texas
Minneapolis, Minn.
Shelby County, Tenn.
Alexandria, Va.
Anne Arundel Co., Md.
Atlanta, Ga.
Tacoma, Wash.
Alabama Highway, Auth.
California, State of

G.O.
Rev. ,
G.O. \

11.1 .
29.0
42.1

St. Louis, Mo.
Los Angeles Co. Flood Control
District Calif.
Genesee Co. Comm. Coll. Mich.
Hawaii Co., Hawaii
Fort Worth, Tex.
Jacksonville, Fla.
Penna State of
Snohomish, Co. PuD#l, Wash.
Seattle Dept. Light & Power
El Paso, Texas
Chicago Pub Bldg Comm, 111.
Cleveland, Ohio
Texas, State of

1
ISSUER

MATURITY

COUPON
!
RATE OR
' «M-TKR NET INTER-i:,(:
EST COST
j YIELD

MOODY'S
RATING

State and Local

New york City
Oklahoma, State of
St. Paul ISD #625, Minn.




1971-1988
1972-85
1973-85

7.28
6.77
5.29

4.75-7. 40
4.75-7. 25
4.00-5. 90

S.F. Rev. 17.0
Rev.
10.0
G.O.
10.6
G.O.
12.5
G.O.
13.1
G.O.
14.0
Rev.
20.0
Rev.
25.0
Rev.
25.0
G.O.
100.0

2007
,
1973-2000
1971-90
1971-95
1971-87
1971-2000 X
1972-2000'
1973-2007
1971-87
1971-90

7.06
7.11
4.79-5.64
5.82
5.65
6.14
7.43
7.20
6.35
5.57

7.08
4.70-7.25

Rev.

1972-05

7.66

Baa
Aaa

'

G.O.
G.O.
G.O.
G.O.
,
Rev.
G.O.
G.O.
Rev.
G.O.
Rev.
. G.O.
G.O.
G.O.
Bonds
G.O.

10.0
10.0
11.5
10.0
10.3
52.0
50.0
24.0
20.0
10.0
52.0
39.5
20.0
233.8
26.1
10.3

1972-95
5.69
1972-1995
6.29
1973-90
5.88
1971-95
5.57
1972-02
7.17
1973-00
6.33
1977-2004
6.88
1973-2005
7.18
1972-1990
5.58
1973-90
6.42
1972-96
6.64
1979-95
5.82
1972-2001
7.15
5.68
1973-92
1971-90 4 .71+5.72+5,,66

3.95-6.25
3.90-6. 70
4.00-6. 65
4.75-7. 70
4.80-7. 35
4.10-7. 00
3.85-6. 30

4.50-7.60

A-l
A
Aaa
Aa
A
A
Baa
Baa-1
A
Aa

Baa

——
3.80-6.20
4.00-7.00 — m.
5.20-6.65 A
3.70-6.40 Aa
4.40-7.35 A
4.15-6.60 A-l
5.00-7.20 Aa
4.50-7.25 A
4.00-6.25 A-l
4.20-7. 00 A-l
4.|10-7. 00 A
4.60-6. 20 A a a
4.85-7. 40 Baa-1
3.80-6. 35 Aa
3.75-6. 20 Aa

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

ISSUER

!

TYPE 2

Oct. 1, thru Oct. 23, 1970
AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

|
! OFFERi
INC
j YIELD

MOODY'S
RATING

State and Local (cont'd)
Grays Harbor Co. Wash, Pub
Utility District #1
Dover, Delaware
Houston, Tex.
North Broward Hosp. Dist. Fla.
North Texas State Univ.
Miami, Fla.
Puerto Rico Highway Auth.

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

10.0
12.1
10.0
10.0
10.0
12.5
50.0

1972-2005
1988-2000
1972-2010
1975-1990
1971-2000
1972-1990
1972-99+99

6.93
7.56
7.23
7.17
5.59
6.26+7.16

4*25-7.34
6.90-7.25
4.40-7.70
5.50-7.60
4.00-7.60
4.00-7.10
—

Baa
A
A-l
A

Other
Inter-American Development BK
Federal Home Loan Banks

*
1
2

3

Bonds
Con bds

100.0
450.0

1995
1973

8.63
7.20

8.70
7.20

Aaa

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.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
As of Oct, 23

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Continental Investment Corp
/Ford Motor Credit Co.
Ford Motor Credit Co.
Beneficial Corp.
Genesco Inc.
Great American Mtg Investors
Mississippi River Trans Corp.
Mountain States Tel & Tel Co.
Portland General Elec Co.
Southwestern Pub. Service Co.
Illinois Pwr Co.
Northern Natural Gas Co.
Dow Chemical Co.
GAC preperties Credit Inc.
Michigan Wis. Pipe Co.
Equitable Life Trust
Equitable Lift Trust
*Belden Corp
Toledo, Edison Co.
First Mtg Investors
Gulf Oil
Louisiana Power
Vermont Yankee Nuclear Pwr Co
General Tel. Co. of the N.W.
Florida Pwr Corp
Portland General Elec Co.
Cleveland Elec Illuminating Co
American Tel & Tel
American Tel & Tel
Consumers B»r Co.
Republic Steel Corp
Public Serv. Co. of N. H.
Pacific G & E^Co
*Alabama P w r C o
*General Tel & Tel Co. Indiana
Houston Natural Gas Corp
Citizens Util Co.
Cincinnati Gas & Elec Co
Public Service Elec & Gas
*Columbus & Southern Ohio Elec
Co.
South Central Bell Tel. Co
General Pub Util.
General Pub Util.
*Delmarva Pwr Register




Debs
Notes
Debs
Debs
Notes
Debs
Debs
Debs
1st mtg
1st mtg
1st mtg
Debs
Debs
Debs
Bonds
Conv debs
Conv debs
Debs
1st mtg
Debs
Bonds
1st mtg
1st mtg
Bonds
1st mtg
1st mtg
1st mtg
Debs
Notes
1st mtg
S.F. debs
1st mtg
1st & ref mtg
1st mtg
Bonds
Debs
1st mtg
1st mtg
Debs

30.0
125.0
75.0
75.0
50.0
26.0
35.0
150.0
20.0
15.0
35.0
60.0
150.0
50.0
40.0
50.0
50.0
16.0
35.0
30.0
200.0
20.0
80.0
15.0 /
40.0
20.0
75.0
350.0
150.0
55.0
100.0
200.0
100.0
60.0
25.0
20.0
23.0
60.0
75.0

26
October
26
October
26
October
October
27
October
27
October
27
October
27
October
27
27
October
October
27
October
28
October
28
October
28
October
29
October
29
October
29
October
29
October
29
October
29
October
November
2
November
4
November
5
November
5
November
5
November
5
November
9
November 10
November 10
November 10
November 10
November 12
November 16
November 17
November 17
November 17
November 18
November 18
November 18

1st mtg
Debs
Debs
Debs
1st mtg coll
i?rst bonds

25.0
150.0
20.4
58.0

November
November
November
November

30.0

November

19
23

—

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of Oct 23
(continued)

ISSUER

__

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate (cont'd)
*Houston Natural Gas Corp.
*NCNB
*Tenneco
Southern Californai Edison Co
New York Tel. Co.




20.0
Debs
S.F. debs
40.0
Com stk
110.0
1st & ref mtg 100.0
1st Mtg
200.0

November
November
November
December
December

3
3

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of Oct 23

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
Louisiana
Memphis, Term.,
*New York State Job Develop Ar th
Seattle
Maine
Houston, Tex
New York State Dormitory Authority
Fairfax, Va
*Pittsburgh, Pa.
Dallas-Ft. Worth Reg. Arpt, Tex.
Mercer Co. N.J.
*Philadelphia S/D Pa.
Detroit Mich
^Massachusetts, State of
*Dade Co. Fla
Detroit City S/D, Mich.
*South Carolina
Pennsylvailia St Pub Sch Bldg Auth
Springfield, 111
*Mass Health & Ed Fac Auth "
Ohio, State of
Illinois State Toll Bgy Auth
^Los Angeles Dept of Airports
Los Angeles Dept. of Wtr & pwr
*Los Angeles Coram Re Dev Agcy
Oakland Co., Mich.
*Dekalb Co, Ga.
Nassau, Co. N.Y.
San Francisco, Calif
Los Angeles Harbor Dept. Calif

G.O.
G.O.
bds
G.O.
G.O.
Rev
G.O.
G.O.
G.O.
Rev
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
Rev
Rev
Rev
G.O*
G.O.
Rev
Rev
G.O.
G.O.
G.O.
Rev
G.O.
Rev

^

25.0
34.0
25.0
23.2
14.6
35.0
14.2
40.0
10.5
50.0
12.5
45.4
18.0
63.0
40.0
30.0
36.7
29.4
14.0
10.5
75.0
135.0
60.0
39.0
10.0
35.9
15.2
16.0
52.9
16.0

October
October
October
October
October
October
October
October
October
October
November
November
November
November
November
November
November
November
November
November
November
November
November
November
November
November
November
December
December
December

27
27
27
27
27
28
28
28
29
28
4
4
4
4
5
9
10
10
10
12
17
17
18
18
18
23
24
9
14
16

Sacramento Municipal Util Dist,
50.0
January
20
Rev
Calif.
1
Included in table for first time.
.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

S&P
5003

L08.37(11/29) 9 85.21(12/13)
87.72(3/5)
825.13 (3/21)

1969 - High
Low
1970 - High
Low

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

106.16(5/14) 968.85 ( 5/14)
32.91(1/3)
89.20 ( 7/17) 769 . 93(12/17) 25.02(7/29)

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

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

93.46(1/5) 811.31(1/5)
69.29(5/26) 631.16(5/26)

80.7(5/26)
35.1(7/3)

28.4(1/2)
8.3(7/3)

85.16
85.08
84.28
83.77

33.24(12/20)
21.97(3/25)

NYSE
82.61(6/7)
34.0(2/23)

1970 - Sept. 25 83; 9 7
2
9
16
23

AMEX 4

D.J. - IND.

1968 - High
Low

Oct.

TRADING; VOLUME 2

27.02(1/8)
19.36(5/27)

76}.. 77

22.34

83.4

26.4

766.16
768.69
763.35
759.38

22.79
22.63
22.39

72.2
84.1
50.5
51.1

23.5
22.7
13.7

22.11

13.7

1.

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

2.

1941-43 = 1 0 .

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:

From:

Through:

August 8, 1967
January 22, 1968
June 30, 1968
January 3, 1969
July 7, 1969
January 2, 1970

August 20, 1967
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1, 1970




Hours/
Dav
4
4
5-1/2
4
4-1/2
5

Highs and lows are

Days/
Week
5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

L

STOCK PRICES AND TRADING VOLUME
AM EX

(Ind.

Weekly

(500)

1280 128

STOCK PRICES
AMEX PRICE LEVEL INDEX

S&P's 500

1200 120

1120 112

1040 104

960

Millions of shares

AMEX TRADING VOLUME (TOTAL FOR WEEK)

N Y S E T R A D I N G V O L U M E (TOTAL f o r WEEK)




60

96 i

TABLE 9: Security Credit

I
1

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:
5,000
4,940
5,040
5,070
4,970

2,670
2,620
2,570
2,520
2,580

7,670
7,560
7,610
7,590
7,550

7,019
7,039
7,243
7,111
7,445

2,577
2,579
2,753
2,613
2,803

4,442
4,460
4,490
4,498
4,642

4,680
4,570
4,520
4,360
4,160
3,860
3,790
3,780

2,430
2,370
2,370
2,330
2^290
2,290
2,290
2,300

7,110
6,940
6,890
6,690
6,450
6,150
6,080
6,080

6,683
6,562
6,353
5,985
5,433
5,281
(4)
(4)

2,626
2,563
2,441
2,248
2,222
2,009
(5) 2,180
2,077

4,057
4,099
3,912
3,724
3,211
3,272
(4)
(4)

1969—June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-330
-170
-170
-60
100
30
-100

-30
-40
-30
-50
-50
-50
60

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

-260
-699
-496
20
204
-132
334

1
-302
-206
2
174
-140
190

-261
-397
-290
18
30
8
144

1970—Jan.
Feb;
Mar.
Apr.
May
June
July
Aug.

-290
-110
-50
-160
200
-300
-70
-10

-150
-40

-440
-170
-50
-200
240
-300
-70

-762
-121
-209
-368
-552'
-152

-177
-163
-22
-193
-26
-213
171
103

-585
42
-187
-188
-513
-61

1969--Aug.
Sept.
;
Oct,
Nov.
1
Dec:
;

1970—Jan.
Feb;
Mar.
Apr'.
May;
:
June
July
Aug.
Change in
Outstanding:

—

-40
-40
-—

10

--

—

.
1

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.
2
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
3
The difference between customers' net debit balances and customers' net free eredit. 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
Digitized forregulated
FRASERor not.



/.

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

DATE

1967
1968
1969
1969 -

1970 -

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY 2
NET
GROWTH
1
FLOW
RATE
5,082
4,208
2,551

July
Aug.
Sept.
July
Aug. jeZ
Sept. &/

-164
95
303
297
176
500

9.3
7.1
4.0
--

-—
—
—

2,376
1,143
-747
-266
24
-269
174
81
n.a.

SAVINGS & LOAN ASSOCIATIONS
SHARE CAPITAL
NET
ANNUAL
NEW
NET
GROWTH
MONEY 2
1
FLOW
RATE

\ TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
FLOW
RATE 1

Not Seasonally Adjusted
10,649
9.4
6,129
7,399
. 6.0
2,738
4,020
3.1
-1,003

15,371
11,607
6,571

9.4
6.3
3.4

-1,110
-8
879

__

-1,122
-25
-104

-1,274
87
1,192

__

543
550
1,831

——

485
517
n.a. /

840
726
2,331

--

—
—

——
—

—

NET
NEW
MONEY 2

8,505
3,881
-1,750
1,388
-1
-373
659
598
n*a.

Seasonally adjusted
1970 -

1
2
3

Apr.
May
June
July
Aug. jc/
Sept.2/

371
360
373
441
279
343

6.6
6.4
6.6
7.8
4.9
6.0

——
—
—
—
—

973
637
891
1,680
785
1,393

8.6
5.6
. 7.8
14.6
6.8
11.0

__
-——
-—

1,344
997
1,264
2,121
1,064
1,736

8.0
5.9
7.4
12.4
6.1
10.0

——
w *» .
w—

1 ——

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




19

SAVINGS FLOWS (seasonally adjusted)

[Millions of dollars

Monthly

2000
1600
TOTAL

1200
800
400

400

1200
SAVINGS & LOANS

800
400

400

MUTUAL SAVINGS BANKS

1966




1967

1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1

DATE

TOTAL

NET CHANGE
" ALL
SAVINGS &
LOAN
ASSOCIATIONS

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

(Billions of Dollars, Seasonally Adjusted)
1969 - July
Aug.
Sept.
Oct.
Nov.
Dec.

9.9
9.5
9.2
8.9

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July

8.2

8.6
8.4

7.9
7.6
7.8

8.0
8.2
8.6

6.8
6.5
6.4

6.1
5.9
5.8
5.6
5.4
5.2
5.4
5.8

6.1
6.5

3.1
3.0

2.8

2.7
2.7

2.6

2.6
2.5
2.5
2.4

2.2
2.1

2.0

.32
.36
.31
.33
.24
.25
.17
.30

.26
.13
.24

.22
.35

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

1/

-.22

-.12

-.23

-.13
-.09

-.18

-.18
-.12
-.22
-.23

-.21

.26
.38
.30
.40

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. 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. Mutual Savings Banks and total data
include building loans beginning August 1967.




-.10

-.24

-.06
-.13
.04
-.07
-.05
-.13
-.14
-.09
-.05

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y.-MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adiusted
18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

1969 - May
June
July
Aug.

2,161
2,385
1,688
2,124

1970 - M a y
June
July
Aug.

1,634
2,32 9
2,089
1,967

1,976
2,163
1,395
, 1,596
1,256
1,932
1,626
1,568

1969 - July
Aug.
Sept.
Oct.
Nov.
Dec.

1,698
1,910
1,876
1,734
1,652
1,906

1966
1967
1968
1969

1,364
1,380
1,365
1,166
1,069
1,292

4,705
4,639
6,677
5,535

2,720
3,153
2,787
2,682

600
575
200
400
200
400
200
200
Seasonally

233
230
215
181
144
221
160
182
Adiusted

151
310
383
244
237
347

181
157 137
124
146
235

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

4,596
2,907
2,459
2,052

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

988
1,216
865
844
723
1,128
1,079
1,111

155
142
115
171
189
183
187
75

185
222
293
528
378
397
463
399

859
720
654
627
547
576

173
193
191
171
139
134

334
530
511
568
583
614

225
556
400
24
288
1,493
937
1970 - J a n f
241
499
436
143
285
1,105
1,604
Feb.
125
516
276
197
1,228
712
144
Mar.
494
189
357
205
892
141
1,386
Apr.
418
196
588
160
133
1,066
1,484
May
220
225
454
1,649
935
269
^ June - 2,103
245
128
506
1,075
2,105
1,599
151
July
54
• 398
985
158
110
1,307
Aug.
1,705
1
Monthly data for commercial banks based~oh 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.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Billions of dollars

Monthly

riii I

3.0

2.5
TOTAL, IMCL. FNKA -

2.0

FINANCIAL INSTITUTIONS

1967




1966

1969

1.5

1970

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

TOTAL

IXIp
IVp

18.7
15.2

1967 - Ip
lip
IIIp
IVp

15.6
20.5
27.0
27.5

1968 - Ip
IIP
IIIp

27.1
25.9
26.5

1969

IP
lip
IIIp
IVp

30.4
28.5
27.0
25.6

IP
IIP

20.3
23.8

1966

1
1970

RESIDENTIAL3

1- to 4FAMILY

11.0

8.4

2.6
2.1
.;/•T~v

5.5
4.2

8.2
6.2

2.2
1.8

6.&V

3.8
4,9
4.9
4.9

7.2
8.2
. 8.7
'
S.8

1.8
1.8
2.5
2.7

9-2

10.0

M ,

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

19.9 •

16.0

3.2
3.4
3.9
3.9

18.4

15.4
14.8
14; 6

3.0
3.2
3.5

6.3
5.7
6.5

9.4
8.9
10.1

2.3
2.2
1.8

18.6

17.9
16.5
15.2
13.1

4.2
4.7
4.7
5.5

6.1
5.0
5.3
5.8

10.3
9.6
10.0
11.3

2.2
2.3
1.8
1.3

14.0
17.5

9.3
11.9

4.8
5.5

4.9
4.7

9.6
10.2

1.5
1.6

13.8

19.6

18.0
18.2

22.1

21.2
19.9

'10,.'5 .
15.7

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Boerd, 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.
May differ somewhat from related flow of funds series mainly because of more .
aggregative type of seasonal adjustment.
Residential .mortgage debt indues nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING

TOTAL

24
TOTAL
RESIDENTIAL

4 FAMILY \

966




1970

TABLE 14: F i M A Weekly " A u c t i o n " Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
1
ACCEPTED
1-YEAR"
901 1-YEAR 1
906TOTAL
6TOTAL
DAY
OFFERED
MONTH & OVER
M0NTH | & OVER
DAY

June

1
15
29

224.2
249.7
156.3

113.8
127.9
98.9

31.1
34.2
30.6

71. 4
86.7
56.,5

11.3
7.0
11.8

9.20
9.27
9.32

9.24
9.30
9.33

9.27
9.31
9.34

July

13
27

286.2
323.8

113.3
150.4

25.0
37.0

73.,0
91,,1

15.3
22.3

9.20
9.10

9.21
9.12

9.22
9.12

Aug.

10
24

441.3
575.0

180.2
215.1

41.4
48.8

91.,0
124.,4

47.8
41.9

9.03
9.^)3

9.03
9.03

9.04
9.03

Sept.

8
21

384.2
207.8

200.1
195.3

45.6
40.1

117,.0
121,.5

37.5
33.7

9.06
9.01

9.04
9.01

9.04
9.02

Oct.

5
19

267.5
352.5

149.8
14.9,7

62.2
53.2

73, 1
88 .1

14.5
8.4

8.90
8.89

8.92
8.90

8.97
8.95

Nov.

2

(150 f J

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 38 basis points fee paid by investors
to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points.

3

FNMA announced limit of accepted bids for next week's auction.




27

FNMA "AUCTION" RESULTS
$ Millions

200

A M O U N T OF ACCEPTED BIDS
BY C O M M I T M E N T P E R I O D

150

6 MONTHS
100

1 YEAR
AND OVER

50

| 3 MONTHS
Per cent
IMPLICIT YIELD
6-MONTH COMMITMENTS

=

™ r

i

i

i

—

i

i

i

1

1

1

1

1

1

1

1

1

1

1

~
$ Millions

-

800

__

600

-

y\

TOTAL BIDS RECEIVED

400

200
|

|
JUNE

| TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




DEC.

1
FEB.

1

1
APR.

I

I

1
JUNE

1970

I

I
AUG.

1
OCT.

1

1
DEC.

0

TABLE 15: Private Housing Starts and Permits
STARTS
DATE

UNADJUSTED
TYPE OF FINANCING
FHA VA I OTHER

SEASONALLY ADJUSTED
ANNUAL RATE .
TOTAL 1-FAMILY 2 OR MORE

1969 - Sept.
Oct.
Nov.
Dec.

1,481
1,390
1,280
1,402

828

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. p
Sept.p

1,059
1,306
1.392
1,224
1,242
1.393
1,603
1,412
1,504

577
725
708
697
728
835
827
830
884

766
762
776

653
624
518
626

129.3
123.4
94.6
84.1

482
581
684
527
514
558
776
582

66.4
74.3
114.7
128.4
125.0
135.2
140.8
127.4
130.8

620

18.3

23.2
16.5
17.5

25.2
32.4
37.1
40.7
43.4
34.1
n.a.

4.8
5.0
3.9
4.2
3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.7

106.2

BUILDING
PERMITS .
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1,201

93.3
74.7
57.9

1,183
1,191
1,239

46.5
52.9
84.7
90.6

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,368

80.8
89.4
92.1
87.7

&

Total starts are Census estimates including farm for both permit-issuing and
nou-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 residualj although total and FHA and
j
VA starts are not strictly comparable in concept or timing; other starts ini
elude 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 j
all known permit-issuing places. Unlike starts, seasonally adjusted building per4
mits reflect direct adjustment for differences in the number of working days per 5
month, as well as other differences in timing and coverage.
\




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED
2.0

HOUSING STARTS

1.6

1.2
BUILDING PERMITS

(in issuing areas)

'CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
40

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

DATE

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - High
Low
1969 - High
Low
1970 - Apr.
May
June
July
Aug.
Sept.
1

2

3

4

CONVENTIONAL
MORT25-YEAR 30-YEAR
GAGES
3
6.26
5.43
6.73
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

n.a.
n.a.

1

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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
.11
-.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
-a 13

9.10
9.11
9.16
9.11
9.07
9.01

8.55
8.55
8.55
8.60
8.60
8.50

-.55
-.56
-.61
-.51
-.47
-.49

8.60
9.10
9.11
8.63
8.48
8.42

.50
.01
.05
.48
.59
.59

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




AND BOND YIELDS
12

11

10

9

8

7

HOME MORTGAGES:

6

CONVENTIONAL
FHA

5

Aaa CORPORATE BONDS:
NEW ISSUES

.

— ^

^

4
SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200
100
+
0

100
1962




1964

1966

1968

1970

32 V
TABLE 17: Conventional Mortgage Terms

DATE

NEW HOMES
CON- FEES &
CHARGES
EFFECTRACT
MATURITY
RATE
(PER
TIVE
(YEARS)
(PER
CENT) RATE
CENT) . • 2
3

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

1

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

LOAN
AMT.
($000:
4

1969
Aug.
Sept.
Oct.
Nov.
Dec.

7.86
7.89
7.99
7.97
8.07

0.86
0.92
0.89
0.96
1.06

8.00 ^
8.05
8.13
8.13
8.25
.

25.2
25.3
25.3
25.3
25.4

72.3
72.9
72.8
72.8
71.9

24.3
25.0
24.6
24.6
25.0

7.90
7.98
8.00
8.00
8.08

0.93
0.91
0.90
0.90
0.93

8.05
8.13
8.15
8.15
8.24

22.6
22.2
22.6
22.6
22.9

71.2
70.7
70.4
70.4
70.6

19.8
19.2
19.5
20.1 .
20.8

8.16
8.23
8.29
8.23
8.28
8.31
8.32
8.35

1.08
1.09
1.11
1.02
0.98
0.99
1.01
0.99

8.34
8.41
8.47
8.40
8.45
8.48
8.49
8.51

25.0
24.2
25.0
24.8
25.3
25.1
25.1
24.9

69.3
71.8
71.1
71.1
71.7
71.3
71.5
71.8

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5

8.13
0.94
8.23
1.02
8.26
0.98
8.20
0.90
8.18
0.94
8.19
0.98
8.21
0.95
8.25 . 0,89

8.29
8.41
8.43
8.35
8.34
8.36
8.37
8.40

22.4
22.4
22.6
22.8
22.8
23.0
23.1
23.1

70.3
70.2
70.4
70.4
70.3
71.5
71.5
71.7

20.5
20.4
20.6
20.4
21.1
21.5
21.7
21.4

1970
Jan..
Feb.
Mar.
Apr.
May
June
JulyZ/
Aug.

1

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 Che case
of new home mortgage rates—in Table 16.

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
Years

Monthly

30
MATURITY
NEW

EXISTING

I i i i i i i i i ' i i J iii i i i i i i i i

15
80

LOAN/PRICE RATIO

NEW

EXISTING

I i M I I 1 i i I I i I I I I i I i i M 1 i 1 65
Thousands of dollars

LOAN AMOUNT
30

20

10
I ii iI i
m i i ii I M i i i i i i i i i
1964




1966

1968

1970
* CHANGE IN SERIES

I