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H.16 September 17,1973 Prepared by the CAP IT A L MARKETS SECTION In c o n j u n c t i o n with t h e MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION CAPITAL MARKET DEVELOPMENTS DIVISION O F RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L RESERVE SYSTEM Washington, D C. 20551 D E V E L O P M E N T S IN T H E C O R P O R A T E AND M U N I C I P A L BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L M A R K E T 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 - J u l y Aug. Sept. 6 13 20 27 NEW ISSUE Aaa UTILITY 1 VOLUME RECENTLY 2 OFFERED Aaa UTILITY 7.92 7.92 8.03 GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 7.80 7.85 7.94 8.12 0 317 54 219 0 76 81 96 0 77 10 10 343 150 90 393 0 100 100 100 100 0 0 0 0 0 0 70 150 79 100 15 0 3 10 17 24 31 8.31 8.52 8.30 8.29 — 8.28 8.32 8.16 8.21 8.24 7 14 7.94 7.74 8.02 8.02 MUNICIPAL BOND MARKET VOLUME YIELDS WEEK ENDING MOODY'S NEW ISSUE BOND BUYER 20-80ND INDEX GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES * IN SYNDICATE ($ MILLIONS) 1973 - J u l y 6 13 20 27 5.10 5.25 5.20 5.30 5.34 5.40 5.37 5.48 194 503 436 626 71 74 76 85 133 129 144 148 Aug. 3 10 17 24 31 5.40 5.40 5.20 5.20 5.10 5.59 5.58 5.47 5.44 5.i4 181 256 215 292 536 89 94 85 83 91 86 53 59 75 79 Sept. 7 14 5.00 5.00 5.18 5.18 134 341 91 81 36 89 NOTES: 1 Federal Reserve series of implied, yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection. relea*d from price restrictions sometime during the last four weeks. 3 4 Estimated by F.R. on the basis of available data. 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 1 RECENTLY OFFERED * A a a UTILITY •MOODY'S S E A S O N E D CORPORATE A a a 3 U . S . GOVT. 20-YEAR C O N S T A N T MATURITY 4 B O N D BUYER 2 0 - B 0 N D INDEX 1971 - High Low 8 . 2 6 (7/3.0) 7.02 ( 2 / 5 ) 8.23 (1/1) 7.17 ( 1 2 / 3 1 ) 7.71 (8/12) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 ( 6 / 2 3 ) 4.97 (10/21) 1972 - High Low 1.60 ( 4 / 2 1 ) 6 . 9 9 (11/24) 7.46 (5/12) 7.17 ( 1 / 7 ) 7.36 (4/28) 7.05 (12/8) 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.96 (10/21) 1973 - High Low 8.52 ( 8 / 1 0 ) 7.29 ( 1 / 2 1 ) 8.32 ( 8 / 1 0 ) 7.28 (1/5) 7.77 (8/24) 7.11 (1/5) 7.79 ( 8 / 1 0 ) 6.42 ( 1 / 5 ) 5.59 (8/3) 5.03 ( 1 / 1 2 ) 7.80 7.85 7.94 8.12 7.41 7.44 7.45 7.48 7.16 7.20 7.25 7.39 5.34 5.40 5.37 5.48 8.28 8.32 8.16 8.21 8. 24r 7.53 7.61 7.71 7.77 7.74 7.71 7.79 7.65 7.52 7.40r 5.59 5.58 5.47 5.44 5.34 8.02p 8.02 7.65p 7.13p 7.27p 7.33 5.18 5.18 July Aug. Sept. 6 13 20 27 3 10 17 24 31 7 14 -- 7.92 7.92 8.03 8.31 8.52 8.30 8.29 -- 7.94p 7.74 5 NOTES: 1 FedCMl Reterve series of implied yield on newly Issued, Asa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 weeks. 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U S . Treasury data. 5 Thursday figures. The average rating of the 20 bonds used in this in^ex falls midway between the four top groups as classified by Moody's Investors Service. Weekly Bond Buyer data. H.16 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS O F DOLLARS G R O S S PROCEEDS 1l CORPORATE PERIOD 1973 1 1972 1 1971 1973 2 S T A T E AND LOCAL 1 1972 1 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 Q1 Q2 Q3 Q4 1st'Half 3 Qtrs. Year 8,222 8,490 5,924 5,811 NOTES: 1 Securities and Exchange Commission estimates of gross 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 OF DOLLARS G R O S S P R O C E E D S BY TYPE OF ISSUER G R O S S P R O C E E D S BY TYPE OF I S S U E PERIOD BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK 1 MEMO I S S U E S INCLUDED MANUFACTURING PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS F O R E I G N [CONVERTIBLE 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 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 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 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 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 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 1972 - I I III IV July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June NOTES: 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. - Source: Securities and Exchange Commission, Estimated data are derived by Federal Reserve based upon available information. H.16 Table 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 September 3, t h r u September 14, 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD 25.0 25.0 20.0 2003 2003 2003 8.00 8.13 8.25 8.09 8.13 8.18 A A A -- MOODY'S RATING CORPORATE GTE of Pa. Wisconsin Pub. Svc. Miss. Pwr. & L t . 1st mtg Debs Bonds D i g i t a l Equipment P h i l . E l e c . Co. Delmarva Pwr. and Lt. Utah Pwr & Lt Iowa E l e c t r i c Pws & L t . New J e r s e y B e l l Com s t k Com s t k ( r t s ) Pref s t k Com s t k Pref. stk • Debs 66.9 96.3 15.0 27.8 12.6 150.0 —— 8.00 7.90 —— —— —— —— 7.96 7.75 7.88 7.85 2013 ——- Aaa V NOTES: • 1 ^ Rights offering. Includes corporate and other security offerings of $16 million and over. \ H.16 Table 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 Sept 3 t h r u Sept 14, 1973 2 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY C O U P O N RATE OFFERING YIELD MOODY'S RATING S T A T E A N D LOCAL Oregon, S t a t e of Greenle Co. Ind, Dev Auth Greenle Co. Ind. Dev. Auth Greenle Co. Ind. Dev. Auth Chicago Onondaga Co. , N.Y. f Los Angeles DWAP Los Angeles DWAP Nassau Co. , N.Y. Washington, S t a t e of U n i v e r s i t y of Texas U n i v e r s i t y of Texas (El Paso) Alaska Housing Finance Agency Alaska Housing Finance Agency U n i v e r s i t y of Texas ( A r l i n g ) G. 0. P o l l Cont Rev P o l l Cont Rev P o l l Cont Rev Rev G.0. Rev Rev G.0. G. 0. Rev Rev Bds Bds Rev 75.0 1.0 50.0 9.0 47.0 12.0 15.0 25. 0 42.8 28.0 34.0 5.0 11.3 24.7 7.5 1977-1984 1983 2003 1993 1976-1993. 1974-1999 1979-1998 1974-1978 1974-2002 1974-2003 1974-2004 __ 1974-1989 2003 4. 70 6.26 6.26 6.26 5.06 5.00 5.25 4.85 5.14 5.17 5.54 5.51 4. 50-4. 65 5. 60 6. 20 6.00 4. 60-5.20 4.55-5.20 4. 60-5.20 4.70-5.30 4.90-5.7 4. 60-5.50 Aa A A A A-l Aaa Aa Aa A-l Aa 5.40-5.80 6. 00 5.55 NOTES: 1 Includes state and local security offerings of $10 million and over. 2 In case of State and local government securities, 0 . 0 denotes general obligation; Rev. Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasl-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. H.16 Table 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of September 14T 1973 TYPE ISSUER Ohio Edison Southern Railway •Hawaiian E l e c t • N a t u r a l Gas P i p e l i n e • P a c i f i c L i g h t i n g Service J e r s e y C e n t r a l Pwr. & Lt. Hawaiian E l e c t . Northern S t a t e s Pwr. (Wise.) V i r g i n i a E l e c t . & Pwr. GTE of Southwest MGIC Mtge Corp MGIC Mtge Corp. Boston Edison •Southwestern Bell Tele Co. Puget Sound Pwr & Lt. Con Edison Co. •Wisconsin Pwr & Lt. •North S t a t e s Pwr. • F l o r i d a Pwr & Lt. • C e n t r a l Pwr & L t . • F l o r i d a Pwr & Lt* • P a c i f i c Gas & E l e c t r i c • M e t r o p o l i t a n Edison Inexco O i l •Investors Diversified • L i o n e l Edie Cap. Fd. •Summit P r o p e r t i e s • T o t a l Petroleum Ltd. Bds equip TR C t f s Com Stk Pfd s t k Deb. 1st Mtge. 1st Mtg. 1st Mtge. Com. Stk. Bds Debs Conv Debs Pref Stk Debs Com Stk 1st & Ref Mtge Com S t k ( r g t s ) Com S t k ( r g t s ) Pfd Stk Bds Com s t k Prd Stk Pfd Stk Com Stk Bene I n t Com Stk Bene I n t Com s t k NOTES: • Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. 1 AM.OUNT (IN MILLIONS OF DOLLARS) 75.0 15.0 16.0 30.0 30.0 50.0 16.0 30.0 95.0 30.0 100.0 100.0 70.0 300.0 15.0 150.0 17.0 55.0 51.0 75.0 50.0 15.0 15.4 12.0 105.0 3.0 15.0 < APPROXIMATE DATE OF OFFERING Sept,. 1 7 Sept.. 18 Sept.. 18 Sept.. 19 Sept., 19 Sept.. 19 Sept.. 19 Sept.. 26 Sept.. 26 Sept., 27 Sept. Sept. Sept. Oct. 2 Oct. 4 Oct. 10 Oct. 10 Oct. 10 Oct. Oct. Oct. Oct. Oct. Oct. Oct. ' Oct. Oct. 16 17 17 18 10 Table 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of September 14, 1973 ISSUER TYPE 1 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL L a f a y e t t e , La. New York, S t a t e of * C h i c a g o , 111. S/D H.A.A. *New York St. Dorm Auth. New York St Pwr Pwr Auth Maryland Dept of Trans. Ohio County, W.Va. S/D N.J. Sports & Exp. Auth. HUD Barton Co. Dev Auth, Ga Baltimore Co., Md. Oakland U.S.D. Cal. New York City Sacramento, C a l i f Muni U t i l Dist Rev G.O. G.O. Bds Rev Rev Rev • G.O. Rev Bds P o l l Cont Rev P o l l Cont Rev G.O. G.O. Rev 10.0 51.9 55.0 293.6 13.2 100.0 47.2 14.2 265.0 446.3 41.0 42. 0 10.8 385.0 50.0 Sept. 18 Sept. 25 Sept. 25 Sept. 26 Sept. 26 Sept. 26 Sept. 26 Sept. 27 Sept. Sept. Sept. Sept. Oct. 15 Oct. 16 Nov. 14 NOTES: 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 STOCK PRICES AND VOLUME STOCK PRICES N Y S E INDEX 57.76(4/18) 48.73(1/4) Sept. 3 TRADING VOLUME DJ INDUSTRIALS I 950.82(4/28) 797.97(11/23) 26.68(4/28) 112.66(12/31) 22.72(1/4) 100.52(2/26) 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 56.23(1/3) 889.30(1/3) 28.53(4/14) 133.28(4/21) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 53.36(7/6) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.39(7/5) 20.4(1/12) 10.2(7/6) 4.8(1/12) 1.5(8/24) 10.4(1/12) 4.0(7/6) 1051.70(1/11) 851.90(8/22) 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 3 10 17 24 31 56.79 55.84 54.58 54.18 55.64 908.87 106.82 105.32 103.71 102.40 104.87 12. 1 12.4 11. 8 10. 8 12.Or 2.3 2.0 1.7 1.5 1.7 4.9 863.49 887.57 23.35 23.17 22.97 22.81 22.98 4. 1 4.4 7 14 56.12 55.92 898.63 886.36 101.58-/ 99.77 107.02 106.07 14.8 12.0 2.0 1.9 5.6 4.8 In-. 84 NOTES: 1 Figures other then high* end lowt ere Fridays only. High* end lowi ere for the yeer end ere not necesserily for Fridays. 2 Volume figures are weekly averages of deily figures (millions of sheres). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week I however abbreviated trading to the extent, and over the time periods, 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 S 20 22% 26 3 12/31/85 - 50 4 Average dollar value of sheres listed. 5 8.9(12/30) 5.1(11/26) AMEX Market Value Index r e p l a c e s AMEX Price Level Index. , Table 8 1? SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD BROKERS O N 1 MARGIN STOCK BROKERS ON % CONVERTIBLE BONDS BANKS 3 UNREGULATED NONMARGIN STOCK CREDIT AT BANKS OTHER SECURITY CREDIT AT BANKS OUTSTANDING July Aug. Sept. Oct. Nov. Dec. 1973- J a n . Feb. Mar. Apr. May June July 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 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 1,502 150 120 20 90 10 4 -2 2 2 -1 5 24 53 -24 -65 -41 -37 128 28 71 4 -4 25 11 13 - 43 96 45 132 -200 -200 -300 -160 -500 -360 -70 -5 -1 -4 -12 -8 -9 1 2 12 -7 -6 n.a. n.a. 44 14 -37 52 41 n.a. -44 24 58 32 20 n.a. n.a. 6/ 6/ CHANGE IN OUTSTANDING July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June July NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 3 New York Stock Exchange data. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 6 0 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. 6 Discontinued. H 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS S A V I N G S & LOAN A S S O C I A T I O N S MUTUAL S A V I N G S B A N K S REGULAR D E P O S I T S 1 ANNUAL 3 GROWTH RATE NET FLOW NET NEW MONEY S H A R E CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY 2 TOTAL DEPOSITS NET FLOW ANNUAL 3 GROWTH RA T E NET NEW MONEY NOT SEASONALLY A D J U S T E D 4,517 9,621 9,788 6.8 13.5 12.0 669 1,136 582 — July 1973 - May June July 525 823 -411 1973 - J a n . Feb. Mar. Apr. May 808 465 579 387 450 690 -199 1970 1971 1972 1972 - May —--- < —— -- 936 5,678 5,397 10,965 28,230 32,902 8.1 19.3 19.5 533 868 414 2,209 - 3,738 2,290 - - 366 -35 -602 1,880 3,277 -222 . 5,285 20,653 23,884 15,482 37,851 42,690 2,107 1,626 2,159 2,878 4,874 2,872 2,640 2,494 2,573 1,763 890 -313 2,383 4,100 -633 2,107 855 -915 7.7 17,5 17.0 6,221 26,331 29,281 S E A S O N A L L Y ADJUSTED July p 10.6 6.1 7.5 5.0 5.8 8.8 -2.5 - — —— —— —— -- 4,026 1,834 2,401 1,259 1,929 2,395 538 23.3 10.4 13.5 7.0 10.7 13.2 2.9 —— — - —— — 4,834 2,299 2,980 1,646 2,379 3,085 339 NOTES: 1 Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the ennuelized monthly percentege increase in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. 19.4 9.1 11.7 6.4 9.2 ' 11.8 1.3 - — - ' - - 2 Table 10 14 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY A D J U S T E D OUTSTANDING COMMITMENTS PERIOD TOTAL - ALL S A V I N G S MUTUAL S A V I N G S BKS & LOAN ASSOCIATIONS (N Y. S T A T E ) NET CHANGE TOTAL ALL SAVINGS MUTUAL & LOAN S A V I N G S BKS ASSOCIATIONS (N Y S T A T E ) ( B i l l i o n s of D o l l a r s , S e a s o n a l l y Adjusted)_r / 1971 - Dec. 16.6 13.1 3.6 .09 -.06 .15 1972 - J a n . Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 14.1 15.0 15 .4 15.7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 25.9 26.6 26.1 25.3 24.6 _24.2 22.9 20.8 21.6 21 .3 20. 7 20.1 19.8 18.6 5.1 5.0 4.8 4,6 4.5 4.4 .98 -62 - .54 .81 .74 -.32 -.53 -.67 -.29 -1.17 .17 -.12 -.22 -.15 -.17 -.09 -.10 1973 - J a n . Feb. Mar. Apr. May June July 4.3 - ^ 8 -.84 -.38 -1.27 NOTES: of New York State. Both series include a minor amount of non Based on data from Federal Home Loan Bank Board .1 Net changes are derived directly from unrounded end-of period outstanding residential commitments. S&L commitments also include I. not add to totals because of rounding. levels as reported and after seasonal adjustment by F«iw.,l Reserve Subtotals may NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND LONG-TERM I S S U E S TOTAL 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. -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 +1,769 +740 +122 +312 +378 +1,303 +1,600 +961 +251 -1 +1,195 +1,200 +600 May June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 * -450 -651 -452 -337 -39 -87 -28 +200 -250 . - - —- - +300 — — — * FNMA -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 — — — — -403 -2 -1 -200 -1 -1 -1 +200 +602 +250 — —— +500 — -1 +814 — - - — - - —— Based on d a t a from t h e T r e a s u r y Survey of Ownership. ' - - -25 +76 +116 +51 — +1 +400 FNMA SHORT-TERM DISCOUNT NOTES +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 - - NOTES: FHLMC +100 -150 -1 +400 +6 +10 +379 +107 +361 +9 +140 +204 -36 +169 -221 Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS PERIOD 1969 1970 1971 1972 TOTAL INCLUDING FNMA-GNM/ FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & Ls Not S e a s o n a l l y A d l u s t e d 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 1972 - J u l y Aug Sept Oct Nov Dec 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 - J a n Feb Mar Apr May June July 3,760 3,454 4,913 4,364 5,339 6,368 3,565 3,388 4,844 4,368 5,503 6,113 900 900 1 ,200 1 ,200 1. ,600 1.,700 1,300 458 331 568 506 562 598 -- INSURANCE COMPANIES FNMA-GNM/ 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 3,301 2,706 162 39 77 -329 142 514 195 66 69 - 4 -164 255 -- -- Seasonally Adjusted 1972 - J u l y Aug Sept Oct Nov Dec 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, 164 472 515 537 484 513 525 2,678 3,108 2,911 2,726 2,876 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 1973 - J a n Feb Mar Apr May June July 4,501 4,081 5,168 4,224 5,272 5,805 4,273 3,969 5,044 4,333 5,331 5,471 1, 112 1, 079 1, 262 1, 162 1, 533 1, 589 1 , 251 475 388 601 554 562 527 2,467 2,430 3,067 2,906 3,100 2,799 2,626 219 72 114 -289 187 556 228 112 124 91 - 59 334 - 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 89per 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.16 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN BILLIONS OF DOLLARS, S E A S O N A L L Y ADJUSTED ANNUAL RATES RESIDENTIAL QUARTER MULTFAMLV & 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 11.0 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- t o 4 FAMILY MULTIFAMILY 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 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: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1 to 4- family and multifamily mortgage debt combined. H.I6 I a Die IH 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 COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY 1969 1970 1971 1972 1,322 1,352 1,952 2,219 626 647 928 1,033 696 705 1,025 1,186 1,500 1,467 2,085 2,379 811 813 1,151 1,309 1972 - August September October November December 2,281 2,366 2,318 2,226 2,399 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 1973 - J a n u a r y February March April May r / June r / July 2,233 2,209 2,129 1,939 1,838 2,030 1,816 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 2 - O R MORE FAMILY 656 898 901 1,048 TOTAL 1—FAMILY MOBILE 2 - O R MORE HOME SHIPMENTS FAMILY 1,399 1,452 1,740 2,002 808 802 1,014 1,145 592 617 692 829 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 1,047 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 (for 14,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit 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. 1/ Data 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 HOMES HUD(FHA) INSURED L O A N S S E C O N D A R Y MARKET EXISTING H O M E S 1 PERIOD RATE (IN PER CENT) 1 SPREAD (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) SPREAD BETWEEN R E T U R N S ON NEW A a a CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND DISCOUNT NEW HOME YIELD (PERCENTAGE MORTGAGES (IN PER CENT) POINTS) (BASIS POINTS) NEW HOMES YIELD (IN PER CENT) SPREAD (BASIS POINTS) 7.97 7.32 31 07 7.8 2.7 28 01 8.04 7.28 1971 - High Low 7.95 7.55 52 01 8.05 7.65 62 06 1972 - High Low 7.70 7.55 61 15 7.75 7.60 66 20 7.57 7.45 48 05 4.7 3.7 14 06 7.45 7.09 1972 - J u l y Aug 7.65 7.65 7.70 7.70 7.70 7.70 27 28 30 32 61 55 7.70 7.70 7.75 7.75 7.75 7.75 32 33 35 37 66 60 7.54 7.55 7.56 7.57 7.57 7.56 16 18 16 19 48 41 4.4 4.5 4.6 4.7 4.7 4.6 11 10 14 13 13 14 7.38 7.37 7.40 7.38 7.09 7.15 7.70 7.75 7.80 7.90 7.95 8.05 8.40 32 35 31 44 44 41 39 7.75 7.80 7.85 7.90 8.00 8.10 8.40 37 40 36 44 49 46 39 7.55 7.56 7.63 7.73 7.79 7.89 8.19 17 16 14 27 28 25 18 4.5 4.6 5.2 5.9 6.4 7.2 9.4 15 19 17 17 16 16 21 7.38 7.40 7.49 7.46 7.51 7.64 8.01 Sept Oct Nov Dec 1973 - J a n Feb Mar Apr May June July - . I i NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. r&lp I// Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS GOVERNMENT-UNDERWRITTEN AMOUNT AVERAGE (IN MILLIONS OF DOLLARS) YIELD DATE OF AUCTION OFFERED 1973 - J a n . Feb. Mar . Apr . 2 8 22 5 6 20 21 5 6 19 21 ' - - | ACCEPTED - OFFERED - 74 .0 107 .0 61.3 92.1 7.69 7.70 128 .6 65.4 7.71 . - - 110 .1 - - —— 71.6 CONVENTIONAL AMOUNT (IN MILLIONS OF DOLLARS) -- 7,73 -- -- 170 .8 107.7 7.75 - -- -- 295 .2 168.7 7.81 - -- -- 38.9 | AVERAGE YIELD ACCEPTED 25.5 -- 7.84 „„ 100.1 —— 62.8 7.89 -- 64.9 49.6 7.92 60.3 44.3 7.95 __ -- -- 86.8 56.4 8.02 111.9 81.6 8.11 -- -- -- 88.4 88.2 8.17 8.23 2 3 16 17 30 257 .9 185.9 7.92 111.0 128.1 14 29 258,.3 212..4 187.7 140.0 7.96 8.00 113.2 110.0 84.4 73.9 8.31 8.39 June 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 23 535. 9 351. 4 244.8 181.4 8.38 , 8.54 107.7 117.7 72.5 61.7 8.67 8.79 Aug. 6 20 456. 5 524. 2 201.9 223.8 8.71 8.95 153.6 169.9 77.4 77.2 8.98 9.27 549. 7 288.9 9.27 117.9 61.5 9.53 May S e p t ., 4 234.4 -• 145.9 7.86 -- 216 .2 190.7 -- -- 7.89 NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received. H.1S
@FedFRASER