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

#1 HOMEOWNERS HOLDING: Conventional wisdom suggests that mortgage rates and home prices tend to move inversely—when one rises, the other typically falls. However, since the pandemic, we’ve experienced a unique period marked by quantitative tightening, elevated mortgage rates, and rising home prices. This apparent disconnect is largely due to homeowners’ reluctance to sell their existing homes and take on a new mortgage at a significantly higher rate. For context, 66% of outstanding U.S. mortgages have rates below 4%, while new 30-year fixed mortgages are typically issued around 7%. This hesitance to sell has constrained housing supply, helping to sustain high prices despite rising borrowing costs. As of May, the median existing home price was $419,300—up significantly from $270,000 before the pandemic.        

#2 DISNEY DOES SPORTS: Walt Disney’s ESPN struck a major deal with the NFL earlier this week. While still pending regulatory approval, the agreement signals Disney’s aggressive strategy to expand its media assets ahead of the launch of ESPN’s new direct-to-consumer streaming service in late August. Under the proposed deal, the NFL would receive a 10% stake in ESPN, and ESPN would take over operations of the NFL Network and NFL RedZone. If approved, the changes would take effect with the 2026 NFL season.

#3 APPLE ONSHORING: Apple CEO Tim Cook announced an additional $100 billion investment—on top of the previously committed $500 billion—toward building out the company’s AI supply chain infrastructure in the U.S. The tech giant has faced increasing pressure to onshore more of its supply chain, and while it continues to manufacture iPhones abroad, this new AI-focused commitment is significant. Cook expects the investment to create approximately 20,000 new jobs.

#4 SHORT KINGS: From August 5, 2024, to August 6, 2025, a portfolio made up of the 100 most shorted stocks by percentage of float would have outperformed the S&P 500 by approximately 13%. This trend gained momentum in April 2025 and has accelerated in recent weeks due to a series of short squeezes. As of now, the Goldman Sachs Most Short Basket has returned 34.44% over the past year, compared to the S&P 500’s 21.46%. (Source: Bloomberg)

#5 GROWING IN REVERSE: Recent revisions to U.S. job market data made headlines, marking the largest two-month downward adjustment on record outside of recession periods. Nearly 258,000 previously reported job gains were erased, bringing the average monthly job growth between May and July down to just 35,000. (Source: Bureau of Labor Statistics)

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