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& a / H.16 S e p t e m b e r 10|; 1 9 7 3 Prepared by the 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 OF RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTEM Washington, D C . 20551 3 - 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 MUNICIPAL BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME STOCK MARKET MORTGAGE MARKET SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT AVAILABLE DATA DO NOT EXIST Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE B O N D MARKET YIELDS WEEK ENDING 1973 - July Aug. Sept. NEW I S S U E 1 A a a UTILITY VOLUME RECENTLY OFFERED A a a UTILITY 2 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT S O L D BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ( $ MILLIONS) -- 7.80 0 0 0 13 7.92 7.85 317 76 77 20 7.92 7.94 54 81 10 27 8.03 8.12 219 96 10 3 8.31 8.28 343 100 0 10 17 8.52 8.32r 150 100 0 0 6 ^ 8.30 8.16 90 100 24 8.29 8.21r 393 100 0 31 — 8.24r 0 0 0 70 79 15 7 8.02 7.94 MUNICIPAL B O N D MARKET VOLUME YIELDS WEEK ENDING 1973 - July Aug. Sept. MOODY'S NEW ISSUE Aaa B O N D BUYER 2D-BOND INDEX 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT S O L D BY END O F WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 133 6 5.10 5.34 194 71 13 5.25 5.40 503 74 129 20 5.20 5.37 436 76 144 27 5.30 5.48 626 85 148 181 256 89 86 53 3 5.40 5.59 10 17 24 5.40 5.20 5.20 5.58 5.47 215 94 85 5.44 292 83 31 5.10 5.34 536 91 75 79 7 5.00 5.18 134 91 36 59 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-ratad utility bond with 5-year cell 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 to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS NEW I S S U E A a a UTILITY DATE 1971 - 1972 1973 High 1 RECENTLY O F F E R E D * A a a UTILITY KOODY S SEASONED CORPORATE A a a 3 U . S . GOVT. 20-YEAR C O N S T A N T MATURITY B O N D BUYER 2 0 - B 0 N D INDEX 8.26 (7/30) 8.23 (1/1) 7.71 (8/12) vLow 6.51 (6/18) 6.23 (6/23) 7.02 (2/5) 7.17 (12/31) 7.06 (2/12) 5.69 (3/23) 4.97 (10/21) - tiigh 7.60 (4/21) (5/12) 7.36 (4/28) Low 6.19 (4/14) 5.54 (4/13) 6.99 (11/24) 7.17 (1/7) 7.05 (12/8) 5.74 (11/17) 4.96 (10/21) High 8.52 (8/10) 8.32 (8/10) 7.77 (8/24) Low 7.79 (8/10) 7.29 (1/21) 5.59 (8/3) 7.28 (1/5) 7.11 (1/5) 6.42 (1/5) 5.03 (1/12) - July Aug. 6 7.80 7.41 7.16 13 7.92 7.85 7.44 7.20 20 5.40 7.92 7.94 7.45 7.25 27 8.03 5.37 8.12 7.48 7.39 5.48 3 8.31 8.28 7.53 7.71 10 5.59 8.52 8.32 7 * 61 7.79 17 5.58 8.30 8.16 7.71 7.65 5.47 24 8.29 8.21 7.77 7.52 5.44 8. 24r 7.74 7.40r 5.34 8.02p 7.65p 7.27p 5.18 31 Sept. ' 7.46 7 7.94p 5.34 NOTES) 1 Fedwel Reserve series of Implied yield on newly Issued, Aaa-rated utility bond with 6-yeer cell protection. 2 Federal Reserve series of Implied free-market yield on competitively bid Asa-rated utility bond with 6-year call protection released from price restrictions sometime during the last 4 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 the 20 bonds used in this index falls midway between the four t o p groups as classified by Moody's Investors Service. Weekly Bond Buyer data. / 5 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS GROSS PROCEEDS . 1 CORPORATE PERIOD 1973 1 1972 1 1971 1973 5 2 STATE AND LOCAL 1 1972 I 1971 January February March 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 April May June 2,497 2,537 3,456 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 August September 3,582 2,893 2,720 4,147 2,532 3,768 1,805 1,966 1,726 1,989 1,903 2,098 October November December 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 18,902 24,962 01 02 03 04 8,222 8,490 ISt.'Half 3 Qtrs. Year 5,924 5,811 • NOTES: 1 Securities and Exchange Commission estimates of yoss proceeds. 2 Securities Industry Association estimates of principal amounts. H.16 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS O F DOLLARS G R O S S P R O C E E D S BY T Y P E O F I S S U E PERIOD BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK G R O S S P R O C E E D S BY TYPE OF I S S U E R MEMO I S S U E S INCLUDED PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS FOREIGN [CONVERTIBLE 1972 - I I III IV 11,214 9,195 10,564 4,634 4,192 4,158 2,781 1,867 3,147 3,798 3,136 3,258 245 57 245 449 836 428 2,109 1,629 1,398 , 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 1973 - I II 8,222 8,490 2,945 3,294 1,405 2,812 3,971 2,383 105 119 112 118 898 1,403 2,427 2,816 1,215 964 3/683 3,308 1972 - May June 3,598 4,341 1,676 1,336 744 1,218 1,148 1,786 100 130 226 131 761 767 738 1,538 391 800 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1,118 948 1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1,454 1,034 770 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 1973 - J a n . 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 2,537 3,456 938 1,049 1,307 801 673 1,338 758 814 811 63 44 12 25 82 11 282 399 722 519 765 1,532 258 374 332 1,439 999 870 NOTES: I MANUFACTURING Other issuers a n 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. - • 1 T a b l e 5A C o n t i n u e d LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY Sept. 3 thru Sept. 7 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE GTE of Pa. - Wisconsin Pub. Svc. Miss. Pwr. & Lt. Public Service of Colo, D i g i t a l Equipment 25.0 25.0 20.0 30.0 66.9 1st Mtge. debs Bds Pref Stk Com Stk 2003 2003 2003 8.00 8.13 8.25 8.09 8.13 8.10 A A A H.16 T a b l e SB C o n t i n u e d LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY Sept. 3 thru Sept. 7, 1973 TYPE ISSUER STATE AND LOCAL AMOUNT (MILLIONS OF DOLLARS) MATURITY 75.0 1977-1984 COUPON RATE OFFERING YIELD MOODY'S RATING \ Oregon, S t a t e of G.O. 4.70 4.50-4.65 Aa H.16 Table 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of Sept. 7, 1973 TYPE ISSUER 1 AMOUNT (IN MILLIONS O F DOLLARS) APPROXIMATE DATE OF OFFERING Corporate New England Tel & Tel New Jersey Bell Utah Pwr. & Lt. Utah Pwr. & Lt. Philadelphia E l e c t . Delmarva Rjrr. & Lt. Cleveland E l e c t . Ilium. Ohio Edison Southern Railway P a c i f i c Lighting Service Jersey Central Pwr. & Lt. Hawaiian E l e c t . Northern S t a t e s Pwr. (Wise.) Va. E l e c t . & Bwr. GTE of Southwest *MGIC Mtge. Corp. *MGIC Mtge. Corp. *Boston Edison *Southwestern Bell Tele. Co. *Puget Sound Pwr & Lt. *Inexco Oil Com.Stk.(Rts) Debs Com. Stk. Com. Stk. Com. Stk.(Rts) Pref. Stk. Pref. Stk. Bds Equip TR C t f s . Debs 1st Mtge. 1st Mtge. 1st Mtge. Com. Stk. Bds Debs Conv.Debs Pref Stk Debs Com Stk Com Stk 188.5 150.0 30.0 28.6 15.0 25.0 75.0 15.0 30.0 50.0 16.0 30.0 95.0 30.0 100.0 100.0 70.0 300.0 15.0 15.4 / Sept. 9 Sept. 11 Sept. 11 Sept. 11 Sept. 12 Sept. 12 Sept. 12 Sept. 17 Sept. 18 Sept. 19 Sept. 19 Sept. 19 Sept. 26 Sept. 26 Sept. 27 Sept. Sept. Sept. Oct. 2 Oct. 4 Oct. NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.16 10 Table 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY ' As of Sept. 7, 1973 ISSUER HOD Nassau Co., N.Y. N.J. Sports & Eqp. Auth. Chicago Onondaga Co., N.Y. Los Angeles EWAP Washington, S t a t e of University of Texas L a f a y e t t e , La. New York, S t a t e of H.A.A. New York S t . IWr. Auth Maryland Dept. of Trans. Ohio County, W.Va. S/D Barton Co. Dev. Auth Baltimore Co., Md. Greenle Co. Ind. Dev. Auth. Oakland U.S.D. Cal. New York City Sacramento, C a l i f . Muni U t i l Dist TYPE Bds G.O. Rev. Rev. G.O. Rev. G. 0. Rev. Rev. G.O. Ms. ^Rev. Rev. G.O. P o l l . Cont. Rev. Poll.Cont.Rev. Poll.Cont.Rev. G.O. G.O. Rev. AMOUNT (IN MILLIONS OF DOLLARS) 446.3 48.5 265.0 47.0 12.0 15.0 28.0 46.5 10.0 51.9 293.6 100.0 47.2 14.2 41.0 42.0 85.00 10.8 385.0 50.0 APPROXIMATE DATE O F OFFERING Sept. 5 Sept. 9 Sept. 10 Sept. 10 Sept. 12 Sept. 12 Sept. 12 Sept. 13 Sept. 18 Sept. 25 Sept. 26 Sept. 26 Sept. 26 Sept. 27 Sept. Sept. Sept. Oct. 15 Oct. 16 Nov. 14 NOTES: 1 Includes M M and local government issues of $10 million and over. 2 Includes foreipi government and International Bank for Reconstruction and Development issues and issues of FedeieMy sponsored agencies. H.16 Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES 3 NYSE INDEX 4 NYSE 26.68(4/28) 22.72(1/4) 112.66(12/31) 100.52(2/26) 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) AMEX 950.82(4/28) 797.97(11/23) | 2 TRADING VOLUME NASDAQ J DJ INDUSTRIALS | 1 AMEX 1 NASDAQ 8.9(12/30) 5.1(11/26) 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 65.14(12/11) 56.23(1/3) 1036.27(12/11) 889.30(1/3) 28.53(4/14) 25.61(1/3) 133.28(4/21) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 1973 - High Low 65.48(1/11) 53.36(7/6) 1051.70(1/11) 851.90(8/22) 26.70(1/8) 22.20(6/25) 136.18(1/12) 99.39(7/5) 20.4(1/12) 10.2(7/6) 4.8(1/12) 1.5(8/24) 10.4(1/12) 4.0(7/6) July 6 13 20 27 53.36 55.12 57.09 58.36 870.11 885.99 910.90 936.71 22.24 22.64 23.18 23.54 99.48 103.03 107.67 109.36 10.2 14.6 16.7 17.1 1.7 2.4 2.9 3.1 4.0 5.5 5.9 6.2 Aug. 3 10 17 24 31 56.79 55.84 54.58 908.87 892.38 871.84 54.18 55.64 863.49 887.57 23.35 23.17 22.97 22.81 22.98 106.82 105.32 103.71 102.40 104.87 12. 1 12.4 11.8 10.8 12.Or 2.3 2.0 1.7 1.5 1.7 4.9 4.9 4.4 4. 1 4.4 7 56.12 898.63 107.02 14.8 2.0 5.6 Sept. 101.58-/ NOTES: 1 Figure* other than highs and low* are Friday* only. High* and low* are for the year and are not nece*$arily for Fridays. 2 Volume figure* are weekly average* of daily figure* (million* of share*). Trading i* normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading t o the extent, and over the time period*, shown below: From Through Hours/Day Days/Week Hours/Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 4 4% 5 5 5 5 20 22% 25 3 12/31/66 - 50 4 Average dollar value of *hare* lilted. 5 AMEX Market Value Index r e p l a c e s AMEX Price Level Index. , . Table 8 12 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD B R O K E R S ON 1 MARGIN STOCK BROKERS ON % CONVERTIBLE BONDS 3 BANKS UNREGULATED NONMARGIN S T O C K CREDIT AT B A N K S OTHER SECURITY CREDIT AT B A N K S OUTSTANDING Dec. 7,660 7,780 7,800 7,800 7,890 7,900 248 246 248 250 249 254 979 1,032 1,008 943 902 865 1,772 1,800 1,871 1,875 1,871 1,896 1,285 1,298 1,255 1,351 1,296 1,528 1973- J a n . Feb. Mar. Apr. May June July 7,700 7,500 7,200 7,040 6,540 6,180 6,010 249 248 244 232 224 215 216 865 867 879 872 866 n.a. n.a. 1,940 1,954 1,917 1,969 2,010 n.a. n.a. 1,484 1,508 1,566 1,482 1,502 6/ 6/ 150 120 20 Dec. 90 10 4 -2 2 2 -1 5 128 28 71 4 -4 25 11 13 - 43 96 45 132 1973 - Jan. Feb. Mar. Apr. May June July -200 -200 -300 -160 -500 -360 -70 -5 -1 -4 -12 -8 -9 1. 44 14 -37 52 41 n.a. n.a. -44 July Aug. Sept. Oct. Nov. C H A N G E IN O U T S T A N D I N G July Aug. Sept. Oct. Nov. —— 24 53 -24 -65 -41 -37 mm mm ' 2 12 -7. -6 * 24 58 32 20 n.a. n.a. NOTES: 1 Margin account debt as reported by the New York Stack 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 60 per cent of security credit outstanding at banks on June 30. 4 5 Nonmarain 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 value. . Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. Digitized6 forD iFRASER scontinued. H 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS O F D O L L A R S MUTUAL S A V I N G S B A N K S REGULAR D E P O S I T S NET FLOW 1 ANNUAL 3 GROWTH RATE S A V I N G S & LOAN A S S O C I A T I O N S NET NEW 2 MONEY S H A R E CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY TOTAL 2 DEPOSITS NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY 2 NOT SEASONALLY A D J U S T E D 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 Apr. 464 —- 280 1,744 —— 1,668 2,208 - — 1,948 May. 669 - - 533 —— 2,107 2,878 - — 2,640 June 1,136 — 868 2,209 3,738 — 1,626 4,874 1973 - Apr. 96 —• -88 831 - * 636 - - 2,383 -- 2,107 — -35 1.880 3,277 1,763 June 525 823 366 724 927 900 4,100 1973 - J a n . 808 10.6 1972 - May — 2,494 865 SEASONALLY ADJUSTED —— 4,026 23.3 — •» 4,834 19.4 1,834 10.4 WW 2,299 9.1 - - 13.5 —• 2,980 11.7 - - - — 1,646 6.4 -- -- 2,379 9.2 3,085 11.8 Feb. 465 6.1 - - Mar. Apr. 579 7.5 — 387 2,401 5.0 - - 1,259 7.0 May 450 5.8 -- 1,929 10.7 June 690 8.8 2,395 13.2 — NOTES: Rmjular 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 Now deposits net of both withdrawals and interest. Data for SStL's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. J~> Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.16 14 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF D O L L A R S , S E A S O N A L L Y A D J U S T E D K OUTSTANDING COMMITMENTS PERIOD TOTAL (Billions 1971 - 1972 - 1973 - Dec. N E T CHANGE ALL S A V I N G S MUTUAL & LOAN S A V I N G S BKS ; ASSOCIATIONS (N Y. S T A T E ) 16.6 13.1 of Dollars , TOTAL Seasonally .09 3.6 MUTUAL ALL S A V I N G S SAVINGS BKS & LOAN ASSOCIATIONS (N Y. S T A T E ) A d j u s t e d ) ;r / -.06 .15 .13 Jan. 18.0 14.1 3.9 .24 .11 Feb. 19.1 15.0 4.1 1.19 .91 .28 March 19.7 15.4 4.3 .49 .38 .11 .29 April 20.1 15.7 4.4 .42 May 20.6 16.2 4.4 .60 .55 June 20.7 16.3 4.4 .53 .60 • .13 .05 -.07 July 21.0 16.5 4.5 .36 .26 Aug. 21.8 17.3 4.5 .83 .76 .07 Sept. 22.9 18.1 4.8 .99 .77 .22 Oct. 23.6 18.7 4.9 .73 .63 .10 Nov. 24.3 19.4 4.9 .73 .69 .04 Dec. 24.9 20.0 4.9 .68 .65 .03 Jan. 25.9 20.8 5.1 .98 .81 .17 Feb. 21.5 5.0 .59 .69 -.10 Mar. 26.5 26.0 21.2 4.8 -.59 -.38 -.21 Apr. 25.3 20.7 4,6 -.65 -.48 -.17 May 24.6 20.1 4.5 -.74 -.61 -.13 June 24.0 19.6 4.4 -.55 -.43 -.12 - .10 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 end-of-period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES TOTAL -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 FHLB 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 +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 +103 +337 -1 +131 +452 +582 +1,267 41,769 +740 +122 +312 +378 +1,303 +1,600 +961 +251 -1 +1,195 +1,200 +600 1973 - J a n . Feb. Mar. Apr. May . INTERMEDIATE AND LONG-TERM ISSUES —— -450 -651 -452 -337 -39 -87 -28 +200 -250 — +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 —m -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 - - —— +300 - - - — —— +200 -- +602 +250 -- +500 -— -— from t h e T r e a s u r y S u r v e y of O w n e r s h i p . — mm — NOTES: B a s e d on d a t a FNMA -403 -2 -1 -200 -1 -1 -1 — SHORT-TERM DISCOUNT NOTES FHLMC — -25 +76 +116 +51 — +1 +400 -1 +814 — — +100 -150 -1 +400 +6 +10 +379 +107 - - +361 +9 +140 +204 -36 +169 -221 Table 12 16 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS O F DOLLARS PERIOD 1969 1970 1971 1972 TOTAL INCLUDING FNMA-GNM/ FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's Not Seasonally Adjusted 5,404 2,682 9,561 2,462 1,845 10,172 9,940 3,938 24,160 15,999 5,377 31,982 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 4,872 5,931 5,286 4,779 5,114 5,943 4,717 5,563 4,918 4,684 4,984 5,811 1,500 1,600 1,400 1,400 1,500 1,000 438 553 502 472 517 598 1973 - Jan Feb Mar Apr May June 3,760 3,454 4,913 4,364 5,339 6,363 3,565 3,388 4,844 4,368 5,503 6,108 900 900 1,200 1,200 1,600 1,700 458 331 568 506 562 598 1972 - J u l y Aug Sept 4,849 5,471 4,748 4,714 5,282 5,697 4,593 5,179 4,714 4,738 5,212 5,601 1,451 1,477 1,155 1,393 1,524 1,164 4,501 4,081 5,168 4,224 5,272 5,800 4,273 3,969 5,044 4,333 5,331 5,466 1,112 1,079 1,262 1,162 1,533 1,589 1972 - J u l y Aug Sept Oct Nov Dec S & Ls I N S U R A N C E FNMA-GNMA COMPANIES 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 2,045 2,128 2,999 2,991 3,250 3,296 162 39 77 -329 142 514 195 66 69 4 -164 255 472 515 537 484 513 525 2,678 3,108 2,911 2,726 2,876 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 475 388 601 554 562 527 2,467 2,430 3,067 2,906 3,100 2,794 219 72 114 -289 187 556 228 112 124 91 - 59 334 Seasonally Adjusted Oct Nov Dec 1973 - Jan Feb Mar Apr May June NOTES; 1 2 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 8 9 p e r cent of the net increase estimated for all holders in 1 9 7 2 . Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.I6 T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES RESIDENTIAL QUARTER MULTFAMLY & COMMERCIAL FARM 6.4 6.0 6.5 7.4 9.5 9.2 10.1 11.3 2.3 2.2 1.8 1.9 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 9.4 11.6 15.0 16.2 5.0 5.2 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 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 U.O 16.1 18.9 19.8 . 19.9 2.2 2.3 2.3 2.5 62.4 64.9 65.2 68.4 45 .4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9.6 8.8 10.4 14.5 15.2 15.2 15.4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 77.0 71.8 57.9 53.0 46.9 42.8 11.0 10.2 16.1 16.2 27.1 26.4 3.0 2.6 TOTAL TOTAL 1- to 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 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 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 1971 - I II III IV 37.5 47.8 52.2 54.2 1972 - I II III IV 1973 - I II COMMERCIAL NOTES: Derived from dsn on mortgage debt outstmding from Federal Deposit Insurance Corporation, Fwtaral Home Low Bank 6o*d, Institute of U l i 1 Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Fedaral Netionel Mortgage Association, Federal Heusing Administration, Veterans Administration and Comptroller of the Currency. Seperation of nonfarm mortgage dsbt by type of property, where not available, end 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 Residents mortgage debt includes nonfarm only and is sum of 1-to 4- femily and multifemity mortgage debt combined. H.16 Table 14 00 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 1969 1970 1971 1972 1,322 1,352 1,952 2,219 626 647 928 1,033 1972 - August September October November December 2,281 2,366 2,318 2,226 2,399 1973 - January February March April May r / June r / July 2,233 2,209 2,129 1,939 1,838 2,030 1,816 COMPLETIONS STARTS 2 - O R MORE FAMILY ' TOTAL 1—FAMILY 2 - O R MORE FAMILY TOTAL 1—FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS 696 705 1,025 1,186 1,500 1,467 2,085 2,379 811 813 1,151 1,309 656 898 901 1,048 1,399 1,452 1,740 2,002 808 802 1,014 1,145 592 617 692 829 1,065 1,029 1,138 1,013 1,001 1,216 1,337 1,180 1,213 1,398 2,424 2,426 2,446 2,395 2,369 1,373 1,382 1,315 1,324 1,207 1,051 1,045 1,131 1,071 - 1,162 1,973 1,972 1,945 1,980 2,147 1,210 1,118 1,156 1,153 1,168 763 853 789 828 980 534 494 548 666 606 1,062 1,079 1,022 945 954 934 891 1,171 1,130 1,107 994 884 1,096 925 2,497 2,456 2,260 2,123 2,413 2,093 2,176 1,450 1,372 1,245 1,202 1,271 1,117 1,249 1,047 1,084 1,015 921 1,142 976 927 2,147 2,033 2,162 2,067 2,175 2,102 1,324 1,259 1,310 1,168 1,288 1,215 823 774 851 899 , 887 886 648 642 737 680 661 616 ! 413 401 497 576 NOTES: Private building permits Ifor 14,000 area* with permit systems, excluding term), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is 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. Digitized1/for Data FRASER f o r 1969 and 1970 based on 13,000 p e r m i t - i s s u i n g p l a c e s . T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL L O A N S PRIMARY MARKET NEW H O M E S 1 PERIOD RATE (IN PER C E N T ) 1971 1972 1972 1973 1 - - - - SPREAD (BASIS POINTS) SPREAD BETWEEN R E T U R N S ON NEW A a a CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND NEW HOME YIELD DISCOUNT ( P E R C E N T A G E M O R T G A G E S (IN PER CENT) (BASIS POINTS) POINTS) H U D ( F H A ) INSURED L O A N S S E C O N D A R Y MARKET EXISTING H O M E S NEW HOMES 1 RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER C E N T ) SPREAD (BASIS POINTS) High 7.95 52 8.05 62 7.97 31 7.8 28 8.04 Low 7.55 01 7.65 06 7.32 07 2. 7 01 7.28 High 7.70 61 7.75 66 7.57 48 4. 7 14 7.45 Low 7.55 15 7.60 20 7.45 05 3. 7 06 7.09 July 7.65 27 7.70 32 7.54 16 4.4 11 7.38 Aug 7.65 28 7.70 33 7.55 18 4.5 10 7*37 Sept 7.70 30 7 . 75 35 7.56 16 4.6 14 7.40 Oct 7. 70 32 7.75 37 7.57 19 4. 7 13 7.38 Nov 7.70 61 7.75 66 7.57 48 4. 7 13 7.09 Dec 7.70 55 7.75 60 7.56 41 4.6 14 7.15 Jan 7. 70 32 7.75 37 7.55 17 4.5 15 7.38 Feb 7.75 35 7.80 40 7.56 16 4.6 19 7.40 Mar 7.80 31 7.85 36 7.63 14 5.2 17 7.49 Apr 7.90 44 7.90 44 7.73 27 5.9 17 7.46 May- 7.95 44 8.00 49 7.79 28 6.4 16 7.51 June 8.05 41 8.10 46 7.89 25 7.2 16 7.64 July 8.40 39 8.40 39 8.19 18 9.4 21 8.01 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.16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS GOVERNMENT-UNDERWRITTEN DATE O F AUCTION 1973 - Jan. Feb. Mar. Apr. AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED ACCEPTED | 74. 2 107.0 61.3 92.1 7.69 7. 70 5 6 19 21 128.7 65.4 7. 71 71.6 7. 73 107.7 7. 75 -- 110.3 -- -- 5 6 19 21 170.8 -- -- —— 297.3 168. 7 7.81 -- -- -- 234.6 145.9 CONVENTIONAL AMOUNT (IN MILLIONS OF D O L L A R S ) OFFERED __ 2 8 22 2 3 16 17 30 AVERAGE YIELD 39 . 3 - 100, . 9 1 AVERAGE YIELC ACCEPTED 7.84 25 . 5 - -- - -- 62 . 9 7. 89 - 66 . 0 49.6 7.92 60, . 3 44 . 3 7.95 8 6 .. 8 56. . 4 8.02 8.11 -- 7.86 1 1 1 . .9 81. . 6 190.7 7.89 -- -- -- -- -- 261.2 185.9 7.92 111. 0 128. 9 88. , 4 88. . 2 8.17 8.23 258.3 212.4 187.7 140.0 7.96 8.00 117. 6 113. 3 84. . 4 74. , 0 8.31 8.39 J u n e 11 25 184.5 199.3. 142.2 118.7 8.04 8.09 110. 1 95. 0 74. 1 69. . 4 8.44 8.51 July 9 23 539.0 351.4 244.8 181.4 8.38 8.54 108. 0 119. 0 72. 5 61. 7 8.67 8 . 79 6 458.5 201.9 8.71 154. 3 77. 4 20 525.0 —- 2 2 3 . 8 8.95 171. 3 7 7 . .2 May Aug. 14 29 -- . 216.6 —— -- —— ' 8.98 9.27 NOTES: Average secondary market v ""elds are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average ac cepted 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 eligible bids received. H.16
@FedFRASER