Full text of H.16 Capital Market Developments : October 5, 1970

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,

v

DECONTROLLED- AFTER SIX MOUTHS
L . 5 . 8 Confidential; ( F . R . )

October 5, 1970

UBRARV

OCT t*

/d/u

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.a.

Not available




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

WEEK ENDING:
1970 - Sept. 4
11
18
25
Oct.

2
9

1970 - Sept. 4
11
18
25
Oct.

8.40
8.52
8.50
8.35

8.13
8.13
8.09
8.06?

511
372
305
812

74
97e
87
80

976
1,361
1,350
1,379

8.37
n. a.

8.05
n.a.

495e
500e

70
n.a.

1,178
n.a.

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

WEEK ENDING:

2
9

CORPORATE BOND MARKET
. VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS

5.70
6.00
5.96
5.95

6.16
6.30
6.26
6.28

186
213
676
324r

62
47
83
75

919
1,147
851
1,184

6.15
n.a.

6.39
n.a.

346
460e

77
n.a.

1,516
n.a.

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

See footnotes to Table 3




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.:

v

;
TABLE 2: Details on Inventories.

DATE
OFFERED

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

AMOUNT
(MIL. $)

10/1
10/1

50.0
10.0

9/29
9/29
9/29
9/23
9/22
9/21
9/17
9/2

30.0
25.0
15.0
100.0
30.0
100.0
20 0
10.0

DATE
OFFERED 1 RELEXSED

\

Oct.

Columbia Gas
Nevada Pwr.

9 1/8
9 3/8

9.15
9.38

A
A

5 yrs
5 yrs

50%
90%

Central Tel.
Carolina Tel. & Tel.
Elizabeth Gas
Pacific N.W. Bell
Baltimore G&E
Commonwealth Ed
Kansas P&L
Atlantic City Elec.

9
9
9
8
8
7
8
8

1/4
1/8
1/2
5/8
5/8
3/4
3/4
1/2

9.35
9.10
9.32
8.55
8,55
7.70
8.65
8.10

A
A
A
Aaa
Aaa
Aaa
Aa
Aaa

5 yrs
5 yrs
5 yts
5 yrs
5 yrs
5 yrs
5 yrs
5-1/2 yrs

75%
85%
25%
307,
40%
65%
70%
80%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
YIELD IN YIELD CALL PROT. PORTION RELEASED

INVENTORIES1
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1970 - Sept.

ESTIMATED PROPORTION SOLD

4
11
18
25
2p

567
566
571
618
583

147
209
201
197
151

CORPORATES
IN SYNDICATE
147
88
41
153
199

N.C. - No call, protection.
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.




BONDS IN SYNDICATE
Millions of dollars

Friday figures

CORPORATE BONDS IN SYNDICATE
200
100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

DEC.

SEPT.

'68




MAR.

JUN.

1969

SEPT.

DEC.

MAR

JUN.

1970

SEPT.

DEC.

TABLE 3: High Grade Bond Yields
NEW \
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
\ Aaa 2

U.S. GOVERNMENT
20-YEAR v
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

8.85 (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)

1970 - Sept. 4
11
18
25

8.40
8.52
8.50
8.35

8.13
8.13
8.09
8.06

6.98
6.99
6.88
6.77

6.16
6.30
6.26
6.28

8.37

8.05

6.81

6.39

DATE

Oct.

2

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




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S V / ' CORPORATE Aaa

U S. GOVT 2 0 YR.
CONSTANT MATURITIES
BOND BUYEti MUNICIPAL

1966




1967

1968

1969

1970

8

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
1

STATE AND LOCAL2

CORPORATE
1970

1969

1968

1970

1969

1968

January
February
March

2,636
1,802
3,539

2.075
2,045
2,098

1,7:71
1,608
1,799

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

April
May
June

3,170
3,909
3,389e

2,748
2.076
2,530

1,428
1,866
2,411

1,646
995
1,070

1,801
1,110
737

1,318
1,143
1,-395

July
August
September

2,875e
2,600e
3,300e

2,478
1,427
2,427

2,143
1,432
1,557

1,306
1,342
1,600e

1,097
808
559

1,469
1,699
1,444

October
November
December

2,900e

1,933
2,375
2,532

2,129
1,767
2,054

l,800e

1,280
886
816

2,230
1,021
1,115

7,977
10,468
8,775e

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

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

4,105
3,711
4,180e
4,248e

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

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

13,572
19,904
26,744

10,882
16,015
21,965

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

18,445

7,816

8
I

6,435
7,956
8,899 12,008
11,881 16,574

Excluding finance companies *
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 PUBLICLY
OFFERED

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

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

II
III
IV

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

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

I
lie

7,977
10,468

4,577
6,994

1,235
1,282

2,147
2,190

222
135

922
710

2,584
2,445

2,085
2,812

766
2,162

2,543
3,048

1.426
2.427
1,933
2,375
2,532

685
1,222
969
1,164
1,346

259
479
313
226
514

482
726
651
984
672

122
35
59
8
48

167
369
105
303
401

362
625
260
453
601

507
544
745
622
600

126
120
201
277

433
984
808
1,099
1,054

226
306
62
1,747
353
150
375
755

680
911
1,310
744
994
950
750
700

Aug.
Sept.
Oct.
Nov.
Dec.

266
468
33
1,068
249
1,802
357
540
1,154
471
128
286
1,914
3,539
1,416
906
2,022
3,170
701
447
89
398
689
1,109
3,041
399
468
3,909
230
20
817
600
82
3,389
436
1,103
1,931
1,021
26
939
650
400
1,825
n.a.
MO
800
825
JulyS./ 2,875
400
400
1,750
n. a.
60
600
Aug.e/ 2,600
875
Sept e 3.500
2,400
500
600
nu a.
100
850
1,195
Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.
Feb.
Mar.
Apr.
May
June

\




272

V

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

August 31 thru October 2, ^970

/

ISSUER

TYPE2

AMOUNT
(MILLIONS

OF

J

MATURITY

DOLLARS)

COUPON .
RATK OR
N 1:1 J.ITER1 ST COST

OFFERING
YIELD

MOODY';..
RAT INC

. Coroorates
Iowa-Illinois Gas & Elec. Co.
Illinois Central Railroad Co.
New England Tel. & Telegraph Co.
International Harvester Co.
Atlantic City Elec. Co.
Atlantic City Elec. Co.
El Paso Natural Gas Co.
John Deere Credit Co.
Central Illinois Pub. Serv. Co.
Georgia Power Co.
Northern Indiana Pub. Serv. Co.
Long Island Lighting Co.
Long Island Lighting Co.
Virginia Elec# & Pwr. Co.
Arkansas Louisiana Gas Co.
G.D* Searle & Co.
May Dept. Stores Credit Corp.
General Electric Corp.
Norton Co.
Kansas Power & Light Co.
Consolidated Edison Co. of N.Y.
Peoples Gas Light & Coke Co.
Ohio Edison Co.
Texas Pwr. & Light Co.
Monogram Industries, Inc.




20.0
1st. Mtg.
Equip. Trst
26.0
Ctfs.
debs.
175.0
debs.
100.0
20.0
1st. Mtg.
debs.
10.0
Cum.pref.
25.0
Stock
debs.
50.0
Com. Stk.
18.3
1st. Mtg.
75.0
1st. Mtg,
35.0
25.0
1st. Mtg.
25.0
1st* Mtg.
85.0
1st* Mtg.
40.0
let# Mtg.
30.0
debs.
50.0
debs.
notes |
75.0
25.0
S.F. debs
20.0
1st. Mtg
1st. & Ref.
Mtg.
150.0
1st. & Ref.
Mtg.
25.0
1st. Mtg
45.0
1st. Mtg
30.0
notes
25.0

2000

8.75

8.65

Aa

1985
2009
1995
2000
1976

9.50
8.63
8.63
8.88
8.50

9.50
8.65
8.65
8.75
8.10

A
Aaa
A
Aa
A

1975

8.75

8.72

N.R.

2000
1975
1975
2000
2000
1990
1995
1976
1976
1995
2000

i 8.88
L 8.25
8.25
9.13
8.88
9.38
8.70
8.88
8.50
9.00
8.75

8.80
8.00
8.05
8.93
8.89
9.40
8.70
8.82
8.46
9.00
8.66

Aa
Aa
Aa
Aa
Aa
A
A
N.R.
N.R.
A
Aa

2000

9.38

9.38

A

1995
1995
2000
1975

8.88
8.75
8.88
10.50

8.80
8.65
8.75
10.50

z

Aa
Aaa
Aaa
Baa

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. treasury)1
August 31 thru October 2, 1970

.

ISSUER

TYPE

2

AMOUNT
(MILLIONS

OF

MATURITY

DOLLARS)

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

10.88
9.99
8.38
8.15
8.70
8.60
8.55
7.70
9.80
8.55
7.25
9.05
9.15
6.00

Baa
Ba
Aa
A
A
A
Aaa
Aaa
Baa
Aaa

Corporates (Cont'd)
American Airlines
Iowa Beef Processors Inc.
Federated Department Stores, Inc
Armco Steel
Armco Steel
Goo4year Tire & Rubber Co.
Baltimore Gas & Elec. Co.
Commonwealth Edison
Texas Gas Transmission Corp.
Pacific Northwest Bell Tele! Co.
Western Union Corp.
Hawaiian Electric
Columbia Gas
Xerox Corp.
Southern Calif. Edison
* Penna Power & Light Co.
Western Electric Co.
Citizen & Southern Realty Inva.
! Central Tel. Co.
Carolina Tel. & Tele. Co.
Elizabethtown Gas Co.
ITT
; ITT
Indianapolis Pwr. & Lt. Co.
General Tel. Co. Penna
Pub. Service Co. of Col.
Inter-American Dev. BK




Gtd. Loan
Ctf.
Bonds
S.F. debs.
Notes
S.F. debs.
S.F. debs.
Bonds
1st Mtg
Debs.
Debs.
Conv. debs
1st. Mtg
Debs.
Conv. deb.
Pref. Stk.
Com. Stk
S.F. debs.
Benf. Int.
S.T. debs.
S.F. debs.
S.F. debs.
S.F. debs.
Notes
1st. Mtg
1st. Mtg
Com. Stk
Bds.

31.8
1988
15.0
1995
50.0
1995
50.0
1975
100.0
1995
150.0
1995
30.0
2000
100.0
1976
50.0
1990
100.0
2010
85.0
1995
23.0
2000
50.0 X 1995
155.7
1995
50.0
28.1
150.0
50.0
30.0
1995
25.0
2000
15.0
1995
100.0
1995
50.0
1975
30.0
1975
15.0
2000
20.3
100.0
1995

10.88
9.99
8.38
8.25
8.70
8.60
8.63
7.75
9.75
8.63
7.25
9.00
9.13
6.00
-

-

-

-

8.38

A
-

8.40

Aaa

9.35
9.10
9.32
8.90
8.30)
7.9%
9.20

A A
A
A
A
Aa
i
A

8.70

Aaa

-

9.25
9.13
9.50
8.90
8.30
8.00
9.25
8.63

v

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

AMOUNT
flTLLIOIiS
OF
DOLLARS)

X

T

COUPON
RATE OR
NET INTEREST COST

OFFF.Ri;.(:
YIELD

MOODY'S
RATING

State and Local
l\)S Angeles DWAP
Los Angeles Dept. of Wtr.
arid Power
Middlesex Co., Mass.
Baltimore Co., Md.
Madison, Wisconsin
Charter Valley Jt. S/D
Auth., Pa.
Minnesota, State of
Minnesota
Greater Chicago Metro, Sand.
Dist. 111.
Alaska, State of
Tulsa, Okla.
San Jose, Cal.
Qhartiers Valley Joint Sch.
Auth., Pa.
University of California
Columbus, Ohio
Washington, State of
Hawaii, State of
Illinois Bldg. Auth.
lichland Co. S.C.
Lake Orion Comm. S/D, Mich.
Broward Co. STSD #1 Flaj,
Hew York State Housing Fin*
Agency
'
Jersey
Allegheny Co. Pa.




Rev.

19.5

1976-95

6.24

4.70-6.15

Aa

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

19.5
10.0
20.0
12.9

2010
1971-90
1972-2000
1971-90

6.24
5.40
5.84
5.42

6.40
3.90-6.00
4.20-6.50
3.90-6.00

Aa
Aa
A
Aa

Rev.
G.O.
G. 0.

12.0
18.0
40.0

1971-1995
1975-80
1971-90

4.99
4.99

4.66-5.10
4.00-6.00

Aa
Aa

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

20.0
11.3
10.0
19.0

1972-1987
1971-85
1972-90
1972-91

6.00
5.88
5.61
5.58

4.40-6.50

A-l
N.R.
A
A-l

Rev.
Rev.
G.O.

12.2
15.3

1971-1995
2010

. ——

4.25-7*00
4.30-7.00

N.R,

10.2

1973-97

6.16
6.70
6.10
6.30
5.58
7.05

4.50-6.50
4.40r7-.0a
4.50-6.70
4.30-6.70

6.09

4,te-6.70

Aa
AA
Aa
Aa
Baa
A

4,10-6.90
4.60-6.25

A
Aaa

&%*_

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

1^4
55.0
65.0
10.0

11.0

1Q71 -9S
1973-90
1971-90
1972-86
1973-2000

——

6.98

25.0

1971-88

76.3
75.0
30.0

1971-2013

6.83

1976-2000

6.00
6.12

--

——

—

4.15-6.50
4.25-6.40

4.30-5.90
4.75-7.10

--

--

—

•

11

T A B L E 6:

.

ISSUER

.

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

!

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

August 31 to October 2, 1970
COUPON
|
RATE OR
j OFFERMOODY 1 S
MATURITY NET INTER- 1
INC
RATING
EST COST
j YIELD

State and Local (Cont'd)
Central Oklahoma Transp. and
Parking Authority, Okla.
Cleveland City Sch. Dist. Ohio
Georgia Ed Auth. Sch.
Los Angeles Parking Auth. Col.
Arlington Co., Va.
Mass. Bay Transp. Auth.
Puerto Rico
Prairieview Agriculture and
Mechanical Coll. of Texas
New York State Dormitory Auth.
Chicago, 111.
Dade Co. Fla, Port Auth.
New York State
Ohio, State of

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

10.8
15.0
24.7
31.9
20.2
66.9
40.0

1972-1991
1972-1993
1974-1995
1971-1990
1971-2010
1972-1995

7.46
6.09
5.95
6.56
5.56
6.39
6.32

7.54
4.25-6.70
4.15-6.40
4.60-6.85
4.00-6.75
4.00-6.30
4.25r6.70
n

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

11.0
13.0
25.0
38.0
70.0
75.0

1975-2010
1972-2001
1971-1990
~ 1975-1998
1971-2000
1972-1991

8.14
6.93
6.12
8.71
5.51
5.83

5.85
4.25-7.00
4.10-6.90
6.75-8. 70
3.85-6.15
4.0-6.70

Debs
Debs

100.0
350.0

7.30
7.50

7.30
7.50

«• —

A
Aa
A
A-l
Aa
A-l
__
——

A
Aa
Aaa

Other
Bank for Cooperatives
FMA

1973
1975

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;
Kev.-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
<C ntinUe(

°

ISSUER

TYPE

"
AS of October 2. 1970
AMOUNT
APPROXIMATE DATE
(MILLIONS
OF OFFERING
OF
DOLLARS)

Corporate
Wisconsin Pwr. & Light Co.
*Otis Elevator Co.
Connecticut Light & Pwr. Co.
Weyerhaeuser Co.
Weyerhaeuser Co
Montana-Dakota Util. Co.
Southern California Gas Co.
Continental Investment Corp
Texas Electric Service Co.
Cummins Engine Co.
*Dresser Industries Inc.
Pacific Telep. & Telegraph Co.
Morton=Norwick
Vermont Yankee Nudear Pwr. Co.
Massachusetts Elec. Co.
*New Jersey Natural Gas
Appalachian Pwr. Co.
Wisconsin Gas Co.
GAC preperties Credit Inc.
Mountain States Telephone &
Telegraph Co.
Southwestern Public Serv^Co.
Mississippi River Transmission
Corp
Illinois Pwr. Co.
Northern Natural Gas Co.
Michigan Wise. Pipe Line Co.
Pan Am. Airways
*Sears, Roebuck & Co.
^Sesrs, Roebuck & Co.
Equitable Life Trust
Equitable Life-Trust
Pacific G & E Co.
General Pub. Utilities
General PuL Utilities
*General Mills Inc.
Clark Equipment Co.
Pitney-Bower Inc.
Louisiana Pwr.




1st mtg
Debs
1st mtg
Notes
Debs
Bonds
Bonds
Debs
Bonds
Debs
S.F. debs
Debs
Debs
Bonds
1st mtg
1st mtg
1st mtg
Debs
Debs

25.0
50.0
40.0
50.0
150.0
15.0
55.0
30.0
25.0
30.0
50.0
175.0
25.0
80.0
20.0
15.0
70.0
15.0
50.0

October
October
October
October
October
October
October
October
October
October
October
October
October
October
October
October
October
October
October

6
6
.7
7
7
8
8
12
13
14
14
14
14
15
19
19
20
21
26

Debs
1st mtg

150.0
15.0

October
October

27
27

Debs
1st mtg
Debs
Bonds
Gtd Loan Ctfs
S.F. debs
Notes
Conv. debs
Conv. debs
1st & ref mtg
Debs
Debs
S.F. debs
Debs /
Debs
1st mtg

35.0
35.0
60.0
40.0
81.0
125.0
125.0
50.0
50.0
100.0
20.4
58.0
100.0
50.0
50.0
20.0

October
October
October
October
October
October
October
October
October
October
October
October
October
October
October
November

27
28
28
29

4

TABLE 7: Forthcoming Large Long-term-Public Security Offerings for New Capital
(Other than U.S. Treasury)^ of 0etober

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

14.0
25.0
12.5
13.1
119.0
45.4
100.0
42.1
17.0
29.0
11.1
75.0
10.0

October
October
October
October
October
October
October
October
October
October
October
October
October

6
6
6
6
6
6
6
7
7
7
8
8
13

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

10.0
12.(f
10.3
52.0
10.0
20.0
11.5
39.5
26.1
233.8
10.0
70.0
12.5
40.0
35.0
135.0
39.0
16.0

October
October
• October
October
October
October
October
October
October
October
October
October
October
October
October
November
November
December

13
14
14
14
19
19
19
20
20
21
21
22
28
28
17
18
16

Bonds
Bonds

200.0
130.0

October
October

5
28

*

j

'

TYPE

ISSUER

it

%

197Q

State and"Local

Anne Arundel Co., Md
Alabama Highway, Auth.
Shelby County, Tenn.
JLexandria, Va.
lichigan
Philadelphia, Pa.
California, State of
laryland, State of
Coastal Indus. Wtr Auth, Tex.
.laska State Housing Auth.
iudson County, N.J..
'enn. State School Bd. Auth.
3t. Louis, Mo.
JOS Angeles Co. Flood Control
Dist. Calif.
iawaii Co., Hawaii
?ort Worth, Tex.
Jacksonville, Fla
21 Paso, Texas
Texas, State of
3enesee Co. Comm. Coll. Mich.
Cleveland, Ohio
Oklahoma, State of
2w York City
orth Texas State University
.Ibany Co., N.Y.
.liami, Fla.
.airfax, Va.
Houston, Tex.
Illinois State Toll Hwy. Auth
Los Angeles Dept. of Wtt & Pwr.
Los Angeles Harbor Dept. Calif.

6.0.

Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
S.F. Rev
G.O.
G.O.
G.O.
Rev.

15

Other
Federal Home Loan Mtg. Corp.
H.A.A.
*
1
2

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

S&P
500 3

DATE

D.J.

TRADING

i

|

STOCK PRICES1
AMEX4

- IND.

AMEX

NYSE

33.24(12/20) 82.61(6/7)
21.97(3/25) 34.0(2/23)

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

1968

- High
Low

108.37(11/29) 985.21(12/13)
87.72(3/5) 825.13 (3/21)

1969

- High
Low

32.91(1/3)
106.16(5/14) 968.85(5/14)
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)

1970

- High
Low

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)

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

1970 -Aug. 28

81.86

765.81

21.00

78.6

21.8

Sept., 4
11
18
25

82.83
82.52
82.62
83.97

771.15
761.84
757.67.
761.77

21.35
21.58
21.85
22.34

60.4
57.4
65.3
83.4

17.1
17.4
18.7
26.4

Oct.

85.16

766.16

22.79

75.1

2

_

23.5

1. Figures other than highs and lows are Fridays only. Highs and lows are
for the year and are not necessarily for Fridays.
2.

1941-43 = 10.

3.

Average dollar value of shares listed.

4. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Total number of shares traded per week (millions of shares). Trading is
normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2
hours per week. In recent years, however, abbreviated trading to the
extent, and over the time periods, shown below;

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

Days/
Week
5
5
4
5
5
5

.

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

15

STOCK PRICES AND TRADING VOLUME
AM EX

Weekly

1280 128

STOCK PRICES

1200 120

AMEX PRICE LEVEL INDEX

1120 112

S&P's 5 0 0

960

96

880 88

D J . IND.

800 80
72
Millions of shares
I ill I ! I I I I
AMEX TRADING VOLUME (TOTAL FOR WEEK)

•M

MM

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




1968

1969

1970

TABLE 9: Security Credit

i
I

END OF PERIOD

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

CUSTOMERS 1
NET DEBIT
BALANCES

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

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

5,340
5,170
5,000
4,940
5,040
5,07-0
4,970

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

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

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

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

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

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

2,430
2,370
2,370
2,330
2,290
2,290
2,290

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

6,683
6,562
6,353
5,985
5,433
5,281

2,626
2,563
2,441
2,248
2,222
, 2,009
5
2,258

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

-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

(4)

(4)

Change in
Outstanding:
1969—June
July
Aug.
Sept.
Oct.
Nov.
:
Dec.

-261
-397
-290
18
30
8
144

-290
1970--Jan.
-150
-440
-762
-177
-585
Feb.
- 40
-110
-170
-121
-163
42
—
- 50
Mar.
- 50
- 22
-209
-187.
Apr.
-160
- 40
-200
-368
-193
-188
200
May
-40
240
- 26
-552
-$13
-300
-300
June
-152
-213
- 61
249
-70
-70
July
—
—
V
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 credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
4. Series discontinued, 5. Changes in series.




T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries

($ millions)

DATE

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

1967
1968
1969
1969 - June
July
Aug.
1970 -

9.3
7.1
4.0

2,376
1,143
-747

324
-164
95

-266

June
July
Aug. j»/

504
297
185

-133
174
100

Mar.
Apr.
May
June
July
Aug. E/

244
371
360
373
441
288

X

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
GROWTH
NET 1
1
RATE
FLOW
Not Seasonally Adjusted
10,649
9.4
6,129
7,399
6.0
2,738
4,020
3.1
-1,003
1,359

—

4.4
6.6
6.4
6e 6
7.8
5.0

-—

-116
~l>lM

"26264
1,801
543
556

1,021
973
637
891
1,680
791

—
--

280
485
517
Seasonally adjusted
9.1
8.6
5.6
7,8
1.4.6
6.8

—
——
m*wm
-—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
. MONEY 2

15,371
11,607
6,371

8,505
3,881
-1,750

9.4
6.3
3.4

1,683

-382

-1,388

-X'27847
2,385
840
741

1,265
1,344
997
1,264
2,121
1,079

154
659
617

7.5
8.0
5.9
7,4
12.3
6.2

*

1
2
3

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.




SAVINGS FLOWS (seasonally adjusted)
[ M i l l i o n s of d o l l a r s

Monthly

2000
1600
1200

TOTAL

800
400

400

1200
SAVINGS & LOANS

800
400

400

BOO
MUTUAL SAVINGS BANKS

400

400
1966

1967




1968

1969

1970

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

DATE

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

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seasonally Adjusted) 1/
969 - July
Aug.
Sept.
Oct.
Nov.
Dec.

9.9
9.5
9.2
8.9
8.6
8.4

6.8
6.5
6.4
6.1
5.9
5.8

3.1
3.0
2.8
2.7
2.7
2.6

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

8.2
7.9
7.6
7.8
8.0
8.2
8.6

5.6
5.4
5.2
5.4
5.8
6.1
6.5

2.6
2.5
2.5
2.4
2.2
2.1
2.0

1

\

-.32
-.36
-.31
-.33
-.24
-.25

-.22
-.24
-.18
-.23
-.18
-.12

-.10
-.12
-.13
-.09
-.06
-.13

-.17
-.30
-.26
.13
.24
.22
.35

-.22
-.23
-.21
.26
.38
.30
.40

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

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.




"

»

-

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y.-MSB'S

Includes building loans beginning August 1 9 6 7

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

FINANCIAL INSTITUTIONS
LIFE
MUTUAL SAVINGS &
INSURANCE
SAVINGS
COMMERCIAL
LOAN
COMPANIES
BANKS
ASSOC.
BANKS

TOTAL
INCLUDING
FNMA-GNMA

Not Seasonally Adjusted
1966

1970

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

575

1,688

1,976
2,163
1,395

1,634
2,32 9

1,256
1,932

20,016
23,781
24,051

1969
1969

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

18,105

1967
1968

- May
June
July
- May
June
July

2,161
2,385

600

2,720
3,153
2,787

2,682

200

233
230
215

200

144

400

200

221
160

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

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

988

155
142
115

1,216 .
865
723

1,128

189
183

1,095

Seasonally Adjusted
1969 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1970

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

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

1.364
1,380
1.365

1,493
1,604

937
1,105
712
892

1,228
1,386
1,484
2,103

1,166
1,069

1,292

1,066
1,649

151
310
383
244
237
347
288
285
144
141
133
269
151

181
157
137
124
146
235
24
143
197
205

160
220
128

859
720
654
627
547
576

173
193
191
171
139
134

400
436
276
357
588
935
1,091

225
241
125
189
196
225

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




23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of

dollars

3.0

TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR 1- to 4- MULTIFAMILY
FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

2.6
2.1

5.5
4.2

8.2
6.2

2.2
1.8

6.8
10.5
15.7
16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5
4.0

6.3
5.7
6.5
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8

1969 - Ip
30.4
28.5
IIP
IIIp 27.0
IVp
25.6

22.1
21.2
19.9
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

1970 - Ip

14.0

9.3

4.8

4.9

9.6

1.5

TOTAL

RESIDENTIAL3

1966 - IIIp
IVp

18.7
15.2

11.0
9.2

8.4
7.0

1967 - Ip
up
IIIp
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

1968 - Ip
27.1
25.9
IIP
IIIp 26.5
IVp
30.1

QUARTER

20.3

FARM

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.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

32
TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

IMPLICIT YIELD2(per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARll 901-•YEAR 1
9066TOTAL
TOTAL
& OVER
DAY
MONTH
OFFERED
DAY MONTH & OVER

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
9.03

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

(150)3/

/

. i

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.




FNMA "AUCTION" RESULTS

[A

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

. 6 MONTHS

1 YEAR
AND OVER

1

V v
y / \ v

13 MONTHS

\

A

P-^l

1

1

'

'

V--T

I

I

I

|
Pe

IMPLICIT YIELD
6-MONTH COMMITMENTS
-

—

1

I

I

I

I

I

I

1

1

1

1 ~
$ Millions

800
600
TOTAL BIDS RECEIVED
400

200
\X

~~

| TOTAL BIDS ACCEPTED
JUNE

AUG.

OCT.

1969




DEC.

FEB.

APR.

JUNE

1970

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits

STARTS

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

(

DATE

SEASONALLY ADJUSTED
AN:; UAL RATE
TOTAL
-v.\y\ r v' o k y. o !<;•:
i'O'i'Ai. 1

Aug.
Sept.
Oct.
Nov.
Dec.

1,376
1,481
1,390
1,280
1,402

752
828
766
762
776

624
653
624
518
626

124.9
129.3
123.4
94.6
84.1

Jan.
Feb.
Mar.
'Apr.
May
June
July P
Aug. -

1,059
1,306
1,392
1,224
1,242
1,393
1,591
1,431

577
725
708
697
728
835
817
833

482
581
684
527
514
558
774
598

66.4
74.3
114.7
128.4
125.0
135.2
139; 7
129.1

1

2

"

1

1

22,4
18.3
25.1
18.8
23.2

4.2
4.8
5.0
3.9
4.2

98.3
106.2
93.3
74.7
57.9

16.5
17.5
25.2
32.4
37.1
40.7
43.4
n.a.

3.4
3.9
4.8
5.4
5.2
5.1
5.3
n.a.

46.5
52.9
84.7
90.6
80.8
85.9
90.6
n.a.

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
1,245
1,201
1,183
1,191 ~
1,239
1,013
1,137
1,099
1,261
1,321
1,306
1,275
1,342

Total starts are Census estimates including farm for both permit-issuing and
noil-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning^
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




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)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

A/

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields

DATE

1

FHA
MORTGAGES 2

CONVENNEW
SPREAD BETIONAL
TWEEN YIELDS Aaa CORMORTON C0NV. &
PORATE
25-YEAR 30-YEAR GAGES
FHA MORTBONDS
3
GAGES
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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

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

5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

.23
.25
.30
.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
-.13

1970 - Apr.
May
June
July
Aug.

n.a.
n.a.
n.a.
n.a.
n.a.

9.10
9.11
9.16
9.11
9.07

8.55
8.55
8.55
8.60
8.60

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

8.60
9.10
9.11
8.63
8.52

.50
.01
.05
.48
.55

1

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
2 Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4 S~ee note for Table 1.
x




MORTGAGE AND BOND YIELDS
Monthly

Percent

HOME MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES

^

Y I E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis Points

200

100

100
1962




1964

1966

1968

1970

I

32

TABLE 17: Conventional Mortgage Terms

CONTRACT

DATE \ RATE
(PER
CENT)

NEV

HOMES

FEES &

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

1

EXISTING HOMES
LOAN/
MATU- PRICE
PRICE LOAN
RATIO AMT.
RITY RATIO
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
3
4
CON- FEES &
TRACT CHARGES EFFEC(PER
RATE
TIVE

LOAN/

LOAN
AMT.
($000)
4

1969
July
Aug.
Sept.
Oct.

Nov.
Dec,

7.76
7.86
7.89
7.99
7.97
8.07

0.92
0.86
0.92
0.89
0.96
1.06

7.91
8.00
8.05
8.13
8.13
8.25

25.5
25.2
25.3
25.3
25.3
25.4

72.0
72.3
72.9
72.8
72.8
71.9

24.5 7.79
24.3 7.90
25.0 7.98
24.6 8.00
24.6 8.00
25.0 8.08

0.91
0.93
0.91
0.90
0.90
0.93

7.94
8.05
8.13
8.15
8.15
8.24

22.8
22.6
22.2
22.6
22.6
22.9

71.7
71.2
70.7
70.4
70.4
70.6

20.1
19.8
19.2
19.5
20.1
20.8

8.16
8.23
8.29
8.23
8.28
8.31
8.31

1.08
1.09
1.11
1.02
0.98
0.99
1.01

8.34
8.41
8.47
8.40^
8.45
8.48
8.48

25.0
24.2
25.0
24.8
25.3
25.1
25.1

69.3
71.8
71.1
71.1
71.7
71.3
71.6

25.1
24.9
25.1
24.5
25.3
25.6
24.9

0.94
1.02
0.98
0.90
0.94
0.98
0.94

8.29
8.41
8.43
8.35
8.34
8.36
8.36

22.4
22.4
22.6
22.8
22.8
23.0
23.1

70.3
70.2
70.4
70.4
70.3
71.5
71.5

20.5
20.4
20.6
20.4
21.1
21.5
21.9

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

8.13
8.23
8.26
8.20
8.18
8.19
8.20

l. 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.
2

Fees and charges--expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

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

4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

30
MATURITY
NEW
25

EXISTING

20

I

I

I

;

I

I M i i I i i i ' i i I i15i i i i i i
Per

80

LOAN/PRICE RATIO

NEW

—

EXISTING

75

X \
70

1

1

1

1

:

I I I I I I I I I I I I I65I I I I I I
Thousands o f d

LOAN AMOUNT
30

NEW

20
EXISTING

10
1

I

1964




1966

I

:

I

:
1968

I I I I I I I I II I I I I II I I I I I I I I
1970
* CHANGE IN SERIES