Five interesting things that Hodges Capital research analysts discovered this week...

#1 CREDIT APPLICATIONS: The New York Fed recently reported that the overall rejection rate for credit applicants rose to its highest level since June 2018, standing at 21.8%, a jump from 17.3% in February.

#2 STUDENT DEBT PAYMENTS: With the upcoming restart of federal student debt payments, 88% of participants in a Piper Sandler survey stated payments would cause financial distress, and 75% anticipate they will need to prioritize bill payments. Also, entertainment (movies, concerts, sporting events) and restaurant spending were cited as the two top areas for spending cutback once payments restart.

#3 GOLF PARTICIPATION: The National Golf Foundation recently reported that rounds of golf played in June were up 5.5% compared to a year ago. Through the first half of the year, total rounds are also up 5.5% compared to the same stretch in 2022.  

#4 HOME EQUITY EXTRACTION: Total home equity extractions for Q1 of $52B declined by $63B, or 55% y/y, as both home equity lines of credit and cash-out refinancing declined. Piper Sandler notes that the $63B decline represents the largest decline in its data set going back 10 years.

#5 MONTHLY MORTGAGE: Strategas recently estimated the monthly mortgage payment set a new all-time high at ~$2,650, with the main culprits being mortgage rates still hovering near 7%, a resilient labor market, and constrained supply due to a decade of underbuilding post-housing bubble in the 2010s.

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