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Auto Loan Rejections Cut in Half Since February, Survey Finds
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're discussing loan applications. Mortgage refinancing is suddenly easier to get, with rejection rates dropping to their lowest level in years. The latest New York Fed data shows U.S. consumers are having more success applying for auto loans and mortgage refis.
Plus, a look back at the last week of market activity.
Table of Contents
INDUSTRY CHATTER
After more than a year of tight lending and high borrowing costs, there are some early signs that access to credit might be loosening. For investors watching consumer resilience, this could offer a small but notable shift in the broader economic picture. Mortgage refinancing, in particular, saw a big move last month, giving potential borrowers a reason to reengage.
Rejection rates dropped to 15% in June, down from 42% in February. That February figure was the highest on record going back to 2013. Auto loan rejections were also down, falling to 7% in June from 14% earlier in the year.
A Look at Consumer Expectations
The data comes from the Fed’s Survey of Consumer Expectations, which tracks how households feel about credit access, inflation, and their financial outlook. Fewer people reported holding back from applying for credit because they expected to be turned down. That share, often referred to as discouraged borrowers, dropped from 8.5% in February to 7.2% in June.
At the same time, people said they’d be more likely to face a surprise $2,000 expense, but also felt more capable of covering it. Overall debt burdens remain a concern in other parts of the Fed’s data, but consumer financial conditions still look relatively stable, especially given the impact of elevated interest rates.
While it's too soon to call this a trend, the June survey offers a snapshot of slightly easier credit conditions that investors watching household spending may want to track.
How this plays out over the next few months will depend on a mix of consumer behavior, lender confidence, and broader economic signals. Credit conditions often shift gradually, and even small changes can influence how people spend, save, or borrow. For now, the latest data suggests a subtle shift worth monitoring.
WEEKLY MARKET RECAP
Wall Street closed the week higher, with tech-heavy indices notching fresh records as upbeat corporate earnings, resilient macro data and breakthrough trade deals converged to boost risk appetite.
The U.S. finalized new trade agreements with Indonesia, the Philippines and Japan. The Tokyo deal was the most significant, locking in a reduction in tariffs on Japanese autos and goods from 25% to 15%, while Japan pledged $550 billion in investment and improved access to American-made goods.
A U.S.-EU trade deal is now reportedly close, expected to align with the Japan framework and potentially ease existing tariff rates ahead of the Aug. 1 deadline.
Separately, President Donald Trump signed an Executive Order to boost the U.S. artificial intelligence sector by promoting the export of full-stack AI systems to trusted global partners. The White House said the move is aimed at strengthening economic leadership and national security.
Among the week's strongest performers, Thermo Fisher Scientific Inc. (TMO) rallied over 12%, topping the leaderboard for large-cap stocks, followed by T-Mobile US Inc. (TMUS) up 9%.
Within the Magnificent Seven, Alphabet Inc. (GOOGL) rose by 1% after delivering better-than-expected results and raising its 2025 capital expenditures (capex) outlook by $10 billion, reinforcing its commitment to scaling AI infrastructure.
Tesla Inc. dropped 8.2% following cautious commentary from CEO Elon Musk, who warned that upcoming quarters could prove challenging amid rising costs and margin pressures.
Economic indicators added fuel to the rally. U.S. business activity surprised to the upside, with the Composite Purchasing Managers’ Index climbing to a seven-month high in July, helped by expansion in services and steady consumer strength.
Trump's push to influence monetary policy continued with an unannounced visit to the Federal Reserve's headquarters in Washington, D.C. — the first by a sitting president in nearly 20 years.
Wearing a hard hat alongside Fed Chair Jerome Powell, Trump criticized the central bank's renovation project, claiming costs had surged to $3.1 billion. Powell countered on the spot, clarifying that the real cost is closer to $2.5 billion, excluding unrelated construction.
Pressed on rate policy, Trump said, "I'd love to see him lower interest rates."
Markets now shift focus to the July 30 Fed meeting, where expectations remain anchored for a hold — but not without growing political heat.
THE WEEK AHEAD
Economic Data
Monday: CAN wholesale Sales
Tuesday: US consumer confidence and job openings
Wednesday: US Fed Chair Powell speaks and FOMC interest-rate decision
Thursday: US initial jobless claims and PCE index
Friday: US employment report and consumer sentiment
Earnings
Click here for the full calendar of economic data and earnings reports.
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