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( COitl luLl'liirtL / ^ 6 a / DECONTROLLED AFTEB SIX MONTHS ^ ^ t S e p t e m b e r 25, 1972 ' \ V' CAPITAL MARKET DEVELOPMENTS I Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. • • • ^ ' •ii & I INDEX Developments in the Corporate and Municipal Bond Markets Capital Market Y i e l d s Capital Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. v Not available T A B L E 1: Yields, Volume and Reception ( WEEK ENDING: 1972 - Aug. YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa CORPORATE BOND MARKET VOLUME;2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 4 11 18 25 7.27 7.24 7.22 7.23 7.22 7.20 7.19 7.17 228 305 528 360 74 82 73 86 Sept. 1 8 15 22 29 7.31 7.28 7.32 7.44 7.16 7.19 7.23 7.23 98 371 12 Oe 180e 200e 41 90 58 81 WEEK ENDING: 1972 - Aug. 4 11 18 25 Sept. 1 8 15 22 29 MOODY'S SEASONED Aaa 5.10 5.10 5.05 5.10 YIELDS BOND BUYER SEASONED 20 BOND INDEX 5.32 5.24 5.22 5.32 5.10 5.15 5.10 5.15 n.a. 5.38 5.39 5.38 5.37 MUNICIPAL BOND MARKET VOLUME2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS 382 88 520 84 293 70 452 66 299 225 600 291 224e 68 88 79 72 n.a. n.a. n.a. n.a. n.a. BONDS SCHEDULED WITHIN 28 DAYS 825 700 937 691 681 758 1,308 1,289 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: Sc-c- footnotes to Table 3 T A B L E 2: Details on Inventories DATE OFFERED I | AMOUNT (MIL. $) DATE I RELEXSED 9/12 9/18 Sept. Aa Aa 5 yrs 5 yrs 20% 50% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON ISSUER IN YIEL1) CALL PROT. PORTION RELEASED YIELD DATE 1972 T Aug. 7,57 7.60 ESTIMATED PROPORTION SOLD AMOUNT 65.0 50.0 9/19 9/19 7 5/8 7 3/4 Cent. 111. Lt. Idaho Pwr 25.0 30.0 9/20 9/19 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION ISSUER COUPON 25 1 8 15 22 - Alabama Power Balto Gas & Elec. INVENTORIES * MUNICIPALS BLUE LIST | IN SYNDICATE 231 . 813 797 758 702 618 240 204 202 163 7.75 7 1/2 7.66 7.47 +5 +5 / A Aaa 54% 70% CORPORATES IN SYNDICATE . 118 118 103 58 35 N.C. - No call protection. 1 All figures in millions of dollars'". Blue List is daily average for v/eck ended Friday, except for lat'est v.cck vhich is daily average of three days endvd Wednesday. All other figures arc as of Friday. 1 T A B L E 3: High Grade Bond Yields MOODY'S SEASONED CORPORATE Aaa 2 8.60 (7/3) 7.48 (12/21) U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 7.55 (5/29) 6.17 (12/18) BOND BUYER'S SEASONED MUNICIPALS 4 7.12 (5/29) 5.33 (12/11) 1970 - High Low NEW CORPORATE Aaa 1 9.30 (6/19) 7.68 (12/18) 1971 - High Low 8.23 (5/12) 6.76 (1/29) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 1972 - High Low 7.44 (9/22) 6.86 (1/14) 7.36 (4/28) 7.16 (8/1) 6.19 (4/14) 5.92 (8/18) 5.54 (4/13) 4.99 (1/13) 18 25 7.22 7.23 7.19 7.17 5.94 5.92 5.22 5.32 1 8 15 22 7.31 7.28 7.32 7.44 7.16 7.19 7.23 7.23 5.97 6.01 6.03 6.07 5.38 5.39 5.38 5.37 DATE 1972 - Aug. Sept. v New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. 1 T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1 STATE AND LOCAL 2 1972 1971 1970 January February March 3,205 3,369 3,229 3,115 3,000 6,075 2,636 1,802 3,539 April May June 3,275 3,598 4,341 4,042 3,300 4,375 3,170 3,909 3,389 July August September 3,436 2,910e 4,147 2,532 3,768 2,768 2,274 3,518 3,387 3,704 3,673 3,777 4,182 3,980 9,803 11,214 12,190 11,688 10,447 10,764 7,977 10,468 8,560 11,939 * 6,015 6,325 6,,841 6,,081 5, 990 6,060 4,109 3,728 4,465 5,862 v 21,017 23,844 34,325 45,089 18,445 27,005 38,944 , 12,339 12,912 18,902 24,962 7,837 ; 12,302 18,164 October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1972 1971 1 | | 1,776 2,002 2,237 2 ,732 1 ,851 2 ,258 1,340 1,214 1,555 I 1 2,114 1,986 2,224 1 ,891 2 ,167 2 ,013 1,647 996 1,085 1 ,989 1 ,903 2 ,098 1,348 1,359 1,758 1 ! 1 8 740e | 1,900e | 1970 1 ,728 1,924 2)264 .; 1,748 2!,068 2,190 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH ~'Tl III IV MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 3,,130 2,,202 2 ;,543 2,910 2,651 3,041 896 2.,263 1,,053 4,753 3,331 4,164 5,361 4,634 1,593 2 781 2,851 3 798 74 245 511 449 2 ,109 1:,525 2,261 3,495 1 ,476 1 ,369 4,541 4,240 4,375 2,282 760 1,,332 52 712 1 ,206 1,055 218 1,897 July Aug. Sept. 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 2.,196 687 1,,196 72 34 8 199 160 293 582 474 1 ,146 732 849 1,070 1 ,622 359 282 1,210 850 1,271 Oct. Nov. Dec. 3,387 3,704 3,673 1,942 2,003 1,190 723 433 1 ,283 723 1 ,269 1 ,201 59 62 12 222 395' 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 Jan. Feb. Mar. 3,205 3,369 3,229 1,767 1,917 1,677 604 412 577 .834 1 ,041 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 • 1,658 Apr. May June July e/ Aug. ;/ 3,275 3,598 4,341 3,436 2,910 1,622 1,676 1,336 1,803 1,510 789 774 1 ,218 534 600 864 1 ,148 1 ,786 1 ,100 800 15 100 130 581 761 767 568 425 1,219 738 1,538 767 650 178 391 800 582 190 1,297 1,708 1,235 1,519 1,645 - June 1 11,688 10,447 10,764 GROSS PROCEEDS BY TYPE OF ISSUER 9,805 11,214 - I II - TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND BONDS MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED PLACED OFFERED STOCK FOREIGN 1 CONVERTIBLE 3,384 215 6,546 1, 758 1,351 1, 641 4, 079 114 4,725 652 3, 193 2, 439 133 5,135 767 — , n. a. 92 . 226 131 442 220 Other issuers arc extractive, railroad and other transportation, real estate and financc, and commercial and other. Sourco: Securities and Exchange Commission. Quarterly supplements are available. / T A B L E 6: L a r g e Long-term P u b l i c S e c u r i t y Issues for New C a p i t a l ( c o n t i n u e d ) (Other than U.S. T r e a s u r y ) 1 ISSUER Corporate Carolina Pwr & Lt Mack Trucks, Inc. Goodyear Tire & Rubber Co Kentucky Utilities^, Illinois Pwr i Gen'l Tel of Ohio Halliburton Co Will Ross Inc. Cenco Instruments Corp Alabama Pwr Public Svc of Indiana Bait Gas & Elect United Va. Bancshares American Natural Gas Phil Elect Houston Lighting & Pwr Baltimore Gas & Elec CMI Investment Corp Digital Equip Corp S. Calif Gas National Kinney Idaho Pwr Central Illinois Light Idaho Pwr Dallas Pwr & Lt Detroit Edison Gulf States Utilities TYPE ' Cum pref Debs Debs Cum pref Cm Bonds Conv deb Conv deb Conv deb 1st mtge Com stk Pref s t k Bonds Com stk Com (rts) Pref stk Bonds Conv deb Com stk Bonds Conv debs 1st mtg Bonds Pref 1st mtg Com stk Pref stk Sept. 5, 1972 thru Sept. 22. 1972 COUPON RATE OR IIFFHRMOODY'S NET INTER- ' i;,c RATING EST COST J YIELD AMOUNT (MILLIONS OF DOLLARS) 50.0 75.0 150.0 20.0 1997 1997 7.72 7 7/8 7.35 7.84 A Baa A A . 2002 1997 1992 1997 2002 7 5/8 4.00 4.50 4.75 7.72 A 1997 7.75 7.75 2002 1992 7.50 4.75 7.47 4.75 Aaa 1997 1997 2002 2002 7.63 5.20 7.75 7.63 7.58 5.20 7.60 7.57 Aa B Aa Aa 2002 7.63 7.47 44.6 20.0 70.0 25.0 20.0 65.0 35.0 40.0 35.0 60.0 90.0 50.0. 50.0 30.0 52.2 45.0 35.0 30.0 25.0 15.0 30.0 80.0 35.0 Ba A T A B L E 6: L a r g e L o n g - t e r m Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 AMOUNT (MILLIONS ISSUER DOLLARS) State and Local Nashville & Davidson Co. 16.3 G • 0* Metro. Gov't, Tenn 100.0 G•0• Connecticut 32.8 Rev. Jacksonville Elect Auth Fla 17.2 Rev. Jacksonville Elect Auth Fla 15.0 Green Bay Metro Sew Dist. Wis. G.O. 31.0 Rev-Re f Delaware River Port Auth 77.4 Ref-Rev Delaware River Port Auth University of Tex System Bd of 16.0 G.O. Regents 40.0 Rev. Kansas 1st mtge rev 7.6 Oklahoma Industries Auth 1st mtge rev 23.9 Oklahoma Indus. Auth 19.6 Rev Georgia Ed Auth 10.0 G.O* Industry Urban Dev Ag. Ca. 233.4 G.O. HUD 23.4 G.O. HUD 22.0 Rev. Grant C o . , W . Wa. 10.2 G.O. Spring Branch ISD, Texas 26.5 Rev Dade Co. Fla. Port Auth 1.5 Rev Dade Co., Fla. Port Auth 100.0 G.O. Massachusetts 20.0 Rev Hollywood, Fla. 22.0 Rev Florida, State of Other F.N M.A. Deb 8 250.0 MATURITY September 4 thru September 22, 1972 COUPON I MOODY1 S OFFERRATE OR RATING i;;<; NET INTEREST COST YIELD 1974-1992 1973-1992 2001 1980-1990 1975-1992 1979 2010 4.79 4.81 5.28 5.28 4.94 1977-1997 1973-2002 1976-1987 2002 1973-1997 2000 1973-2013 1973-2013 2002 1974-1998 2011 1974-1992 1973-1992 1973-2001 1973-1997 5.26 5.29 1997 — 6.00 — 6.20 5.13 5.83 4,20 5.20 5.63 5.18 5.94 5.94 4.82 5.48 5.31 7.40 3.50-5.60 3.10-5.10 5.40-5.35 4.30-5.10 3.50-5.55 4.60 6.00 A Aaa Aa Aa A-l 4.00-5.40 3.10-5.55 4.25-6.00 6.20 3.00-5.50 5.85 3.00-5.25 2.85-5.25 5.63 3.20-5.25-5. 50 5.93 5.93 3.10-5.15 3.20-5.80 3.00-5.50-5,.70 A-l A 7.40 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; •<ev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-lit., revenue bonds secured only by income from quasi-utilitivs; 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 http://fraser.stlouisfed.org/ Development issues and non-quaranteed issues by Federal Agencies. Federal Reserve Bank of St. Louis "" Aa A Aaa Aaa — Baa Baa Aa Baa A — 10 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other th?.n U.S. Treasury) 1 As of Sept. 22, 1972 ISSUER Mortgage Investors Tr of Wash United Jersey Banks United Illuminating Potomac Elect Pwr* Texas Industries Inc Brooklyn Union Gas Virginia Elect pwr Virginia Elect Pwr British Leyland Motor Corp Louisiana Land Offshore Explo ration Great American Mtg Inv Citizens & So Realty Inv M-G-M Consumers Pwr Mich-Wise Pipeline Consumers Pwr GTE of South West Massachusetts Elec Co Pacific Pwr & Light Co Ohio Pwr Co Southwestern Pub Serv Co TYPE Conv deb Debs Debs 1st mtg Debs 1st mtg Pref Com st Bonds Conv debs Bonds Bonds Bonds Cm st 1st mtg Bonds Debs Bond s 1st mtg Bonds Bonds AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 25 .0 20 .0 25 .0 50 .0 15 .0 25,.0 50,.0 85,.0 20..0 September September September September September September September September September 26 26 26 26 26 27 27 27 28 100..0 25.,0 25. 0 50.,0 60. 0 50. 0 50. 0 40. 0 20. 0 20. 0 25. 0 20. 0 September September September October October October October October October October October October 3 3 3 4 5 10 11 16 16 11 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ' . n ISSUER State and Local Gloucester Co Sewage Auth. NJ (Fairfax Co., Va. Dallas, Texas ] W a s Co., Ohio Flkt Rock, Mich *Texas Water Development Bd. San Bernardino Wtr. Dist., Cal New York State Washington Metro Area Transit Auth New York City Los Angeles DWAP Phoenix, Arizona Los Angeles Ca. Fla Cont. Dist Cal. Austin, Texas Oregon Winston-Salem N.C. Nebraska Pub Pwr ' California, State of Ohio Rev G.O G.O Rev. Ind Dev. Rev G.O. G.O. G.O. AMOUNT (MILLIONS OF DOLLARS) 15.0 29.0 40.0 18.5 25.0 25.0 12.0 156.0 Rev. G.O. Rev. G.O. & Rev Rev. G.O. & G.O. G.O. Rev. G.O. G.O. TYPE Rev APPROXIMATE DATE OF OFFERING Sept. Sept. Sept. Sept. Sept. Oct. Oct. Oct. 27 27 27 225.0 300.0 40.0 22.0 Oct. Oct. Oct. Oct. 10 11 11 17 35.0 12.2 45.0 10.9 25.0 90.0 100.0 Oct. Oct. Oct. Oct. Oct. Nov. Nov. 17 19 25 31 3 3 4 3 16 Included in table for first time. Includes corporate and other issues of 515 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. ! 1972 12 Table 8 STOCK PRICES AND VOLUME TRADING VOLUME 2 - STOCK PRICES1DATE NYSE INDEX 3 " NYSE AMEX * D J . INDUSTRIALS AMEX 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00 (12/29 ) 631.16 (5/26) 27.02 (1/8) 18.5 (12/4) 19.36 (5/27 ) 7.8 (8/14) 7/1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4/28) 797.97 (11/23 ) 26.68 (4/28 ) 22.1 (2/12) 22.72 (1/4) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - High Low 61.56 (8/11) 56.23 (1/3) 971.25 (5/26) 889.30 (1/3) 28.53 (4/14 ) 21.2 (3/24) 25.61 (1/3) 13.8 (7/7) 7.4 (3/10) 2.6 (9/8) Aug. 4 11 18 25 60.75 61.56 61.52 60.93 951.76 964.18 966.99 959.36 26.92 27.01 26.97 26.71 16.1 15.1 16.2 16.7 3.9 3.9 4.0 3.6 Sept. 1 8 15 22 61.34 60.53 59.76 59.51 970.05 961.24 947.32 943.03 26.67 26.46 26.15 26.06 16.7 11.2 12.3 11.8 3.3 2.6 2.8 2.6 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily.for Fridays. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire 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: Hours/ Days/ Week From Through: Day Week January 3, 1969' July 7, 1969 January 2, 1970 3. 12/31/65 = 50 4. Average dollar value of shares July 3, 1969 December 31, 1969 May 1, 1970 4 4-1/2 5 20 13 T A B L E 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS' | BANKS 2 | TOTAL CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: 1971 - July Aug. Sept. Oct. Nov. Dec. 4,790 4,850 4,930 4,950 4,910 5,400 2,420 2,430 2,430 2,410 2,400 2,440 7,210 7,280 7,360 7,360 7,310 7,840 1972 - Jan. Feb. Mar. Apr. May June July 5,700 6,180 6,620 7,010 7,200 7,510 7,660 2,490 2,510 2,520 2,530 2,560 2,650 2,700 8,190 8,690 9,140 9,540 9,760 10,160 10,360 1972 - July Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 30 10 100 70 80 -20 -10 40 — — -50 530 -- 1972 - Jan. Feb. Mar. Apr. May June July 300 480 440 390 190 310 150 50 20 10 10 30 90 50 350 500 450 400 220 400 200 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,210 2,200 2,100 2,160 2,170 2,220 2,488 2,542 2,512 2,459 2,330 2,231 2,245 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Change in Outstanding: -- — — — — — — 230 -10 100 60 10 50 268 54 -30 -53 -129 -99 14 — -- — — — — --— — _L 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. "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." 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. Series discontinued T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL 2 MONEY GROWTH NET RATE 1 FLOW 1970 1971 1971 - June July August Not Seasonally Adjusted 3.1 -1,003 4,068 8.1 5,285 10,965 19.4 20,652 28,244 6,617 15,482 37,867 3.4 7.7 17.5 -1,766 6,231 26,330 -- 1,552 1,739 1,247 1,898 2,574 1,870 4.0 6.8 13.5 -763 936 5,678 996 415 300 -- 277 276 195 3,,105 1,,551 1,,538 1,275 1,463 1,052 4,101 1,966 1,409 272 415 310 -1,626 3,,738 2,159 2 ,289 1,560 1.,600 Seasonally Adjusted 4,775 2,889 2,025 — —* 2 ,955 3 ,091 2 ,704 1 ,814 2 ,849 3 ,431 2 ,031 3,816 4,180 3,678 2,390 3,786 4,248 2,703 17.6 19.0 16.5 10.6 16.6 18.4 11.5 1 ,037 600 425 ,1972 - February March April May June July e/ August e/ 861 1 ,089 974 576 937 817 672 3 NET NEW MONEY 2 2,549 4 517 9 623 1972 - June July e/ August e/ 1 2 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW SAVINGS <St LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 GROWTH NET FLOW RATE 1 - __ — — 12.6 15.8 14.0 8.2 13.2 11.4 9.3 ~----- -- - . 19.9 20.5 17.6 11.7 18.2 21.5 12,5 ---— — -- — — — 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 I.can Bank Board. -- T A B L E 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS | ALL MUTUAL 1 SAVINGS SAVINGS & TOTAL BANKS LOAN (N.Y. STATE) ASSOCIATIONS 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Sea sonally Adjusted) 71 - June July Aug. Sept. Oct. Nov. Dec. 15.9 16.2 16.3 16.4 16.3 16.6 16.6 12.8 13.1 13.2 13.2 13.1 13.2 13.1 >72 - Jan. Feb. Mar. Apr. May June 17.0 18.3 19.5 20.5 21.7 21.7 13.3 14.2 15.2 16.0 17.1 17.2 / \ 3.1 3.1 3.1 3.2 3.3 3.4 3.6 1.31 .30 .12 .08 .02 .20 .09 1.26 .29 .14 -.07 -.05 .08 -. 06 .05 .01 -.01 . 14 .07 .12 . 15 3.7 4.1 4.3 4.5 4. 6 4.5 .30 1.34 1.19 .99 1.24 .91 . 12 .97 .97 .79 1.15 . 83 . 18 .37 .22 .20 .09 -.08 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. 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. 16 TABLE 12: Net Change in Mortgage Holdings 1 DATE TOTAL INCLUDING FNMA-GNMA TOTAL FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. LIFE INSURANCE COMPANIES Not Seasonally Adjusted 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 1972 - May June July 4,758 5,624 4,474 5,592 1,300 1,500 1,400 1971 - June July Aug. Sept. Oct. Nov. Dec. 4,136 4,186 4,295 4,021 3,747 3,745 4,323 3,935 3,878 3,783 3,555 3,357 3,443 4,081 1,219 977 1,001 999 974 843 824 1972 - Jan. Feb. Mar. Apr. May 3,123 3,315 4,208 4,057 4,714 5,224 2,974 3,065 4,097 4,058 4,339 5,105 2,787 2,682 1,845 3,938 9,350 9,561 10,172 24,160 454 585 2,720 3,453 2,819 2,459 2,052 2,348 1,221 2,508 4,375 4,909 2,388 24 54 n.a. 284 50 155 Seasonally Adjusted July 754 1,061 1,084 1,261 1,414 1,377 386 374 400 306 329 465 522 2,309 2,455 2,252 2,122 1,977 2,058 2,357 21 72 130 128 77 77 378 201 308 512 466 390 302 242 272 296 486 390 455 533 1,813 2,042 2,571 2,506 2,571 3,067 2,754 1 -27 -21 78 52 91 149' .250 111 -1 375 119 144 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 1971. 17 T A B L E 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR TOTAL RESIDENTIAL3 1- to 4FAMILY 1967 - I II III IV 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 1968 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 1969 - I II III IV 31.8 29.1 26.2 24.9 1970 - I II III IV MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 3.3 3.4 3.8 3.8 3.9 5.0 4.9 4.7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 1.8 1.9 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7 4.7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0 10.5 2.2 2.2 1.7 1.4 20.6 22.9 29.1 31.3 14.2 16.9 21.8 22.5 9.1 11.5 15.5 16.0 5.1 5.4 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2. 1 2.2 1971 - I II III IV 37.1 47.8 53.6 53.4 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 8.1 9.7 8. 7 8.7 8.3 9.4 11.2 10.8 16.3 19.1 19.9 19.5 2.2 2.3 2.3 2.5 1972 - Ie He 56.7 57.7 41.5 42.8 32.2 33.4 9.3 9.4 13.0 12.8 22.2 22.3 2.2 2.1 QUARTER - l i l i i i l l l i l * . Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family y and multifamily mortgage debt combined. / T A B L E 14: WEEK ENDED FNMA Weekly " A u c t i o n " Results COMMITMENTS IN $ MILL! NS IMPLICIT YIELD 2 (per cent) ACCEPTED 1-YEARH 906901-YEAR 1 TOTAL TOTAL 6MONTH & OVER & OVER OFFERED DAY DAY MONTH 76.4 76.4 83.5 97.8 48. 1 76.6 48. 1 76.6 July 10 24 134.6 123.9 92.1 113.0 92.1 113.0 Aug. 7 21 106.2 114.6 81.7 87.2 Sept. 5 18 220.6 295.9 151.2 148. 1 May 30 133.4 June 12 26 81. 7 87.2 151.2 148.1 -- 7.62 . -- 7.62 7.62 __ __ -- 7.62 7.62 -- 7.63 7.62 -- \ -- ' 1 7.63 7.65 -- -- -- -__ Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Average secondary market yields 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. 19 T A B L E 15: Private Housing Starts and Permits STARTS UNADJUSTED TYP E OF FINANCING FHA VA OTHER SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL - August September October November December 2,219 2,029 2,038 2,228 2,457 1,198 1,172 1,155 1,242 1,347 1,021 857 882 985 1,110 204. 5 173. 8 179. 7 176.,4 152. 1 45.8 48.3 38.5 47.2 85.4 - January February March April May June e/ July Augus t 2,487 2,682 2,369 2,109 2,350 2,330 2,190 2,457 1,415 1,325 1,302 1,167 1,344 1,296 1,272 1,405 1,071 1,357 1,067 942 1,006 1,034 918 1,052 150. 9 153. 6 205. 8 213. 2 227. 9 226. 3 205. 0 228.2 37.4 27.8 37.7 29.1 34.1 32.7 28.6 DATE • 9.4 8.7 8.1 9.1 7.4 7.5 8.0i 10.5 . 8.5 9.4 9.6 9.4 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 147.0 116.8 133.1 120.1 59.3 1,997 1,944 1,983 2,051 2,142 106.0 117.8 155.7 172.9 180.3 181.1 165.6 2,204 2,056 2,007 1,991 1,955 2,121 2,108 2,246 " 1 2 Total starts are Census estimates including farm for both permit-issuing and noi.-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. 2o T A B L E 16: Mortgage and Bond Yields CONVENTIONAL MORTGAGES 1 NEW Aaa CORPORATE BONDS 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.01 7.24 .50 -.36 1971 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 .11 7.19 7.09 .43 .50 1972 - Jan. Feb. Mar. Apr. May 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 . 11 .14 .10 .10 .07 .06 .11 .10 7.07 7.16 7.22 7.31 7.21 7.30 7.32 7.26 .42 .30 .33 .19 .39 .30 .22 .29 MORTGAGES 30-year July Augus t 1 2 3 4 5 6 . Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the . table. Based onFHA-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. Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. See note for Table 1. Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 21 TABLE 17: Conventional Mortgage Terms DATE NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE (YEARS) (PER CENT) RATE CENT) 3 2 1 EXISTING HOMES CON- FEES & LOAN/ LOAN/ TRACT CHARGES EFFEC- MATU PRICE PRICE LOAN RATIO AMT. (PER RATE RITY RATIO TIVE (PER ($000) (PER CENT) RATE (YEARS) (PER CENT) CENT) CENT) 2 4 3 LOAN AMT. ($000) 1971 July Aug. Sept. Oct. Nov. Dec. 7.51 7.60 7.67 7.68 7.65 7.62 0.90 0.84 0.97 0.97 0.87 0.93 7.66 7.74 7.83 7.84 7.79 7.77 26.3 26.2 25.8 26.4 26.7 26.6 74.5 73.9 75.3 75.5 75.4 74.5 27.1 26.5 25.9 26.3 27.3 26.5 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.76 0.78 0.79 0.79 0.78 7.63 7.71 7.76 7.75 7.69 7.64 24.2 24.5 24.2 24.1 24.6 24.6 74.5 74.2 74.5 74.2 74.6 74.6 23.2 23.5 22.5 22.9 23.2 23.9 7.62 7.45 7.38 7.38 7.40 7.41 7.45 0.95 1.02 0.84 0.83 0.84 0.85 0.83 7.78 7.61 7.52 7.51 7.53 7.55 7.58 26.5 27.0 27.2 27.2 27.2 27.2 27.3 75.0 76.5 76.2 76.0 76.2 76.5 77.2 27.6 27.8 28.2 28.5 28.5 27.8 28.2 7.45 7.35 7.31 7.30 7.33 7.36 7.37 0.82 0.79 0.77 0.78 0.77 0.78 0.78 7.58 7.48 7.44 7.42 7.46 7.49 7.50 24.7 25.4 25.1 25.2 25.2 25.5 25.5 74.7 75.8 75.6 75.3 75.4 76.1 76.0 24.1 24.8 24.4 24.9 24.6 25.2 25 . 0 1972 Jan. Feb. Mar. Apr. May June July j>/ V 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. 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. Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. Derived by FRB.
@FedFRASER