The economy added just 29K jobs in September, far fewer than expected, while unemployment edged up to 4.2%.

Prices paid by service firms hit the highest level since July 2022, raising concerns that inflation could remain stubborn.

The Fed's latest meeting minutes showed most officials expect another rate hike before year-end due to stubbornly high inflation.

Purchase applications fell 2% last week and were 15% lower than a year ago, as mortgage rates kept buyers on the sidelines.

To offset those rates, more buyers are using ARMs (11% in mid-September) or paying points (50% in August), per ICE.

Potential relief is also coming from price cuts. Realtor.com reports more than 1 in 5 homes for sale had a reduction in September.