Orders for cars, appliances and other durable goods increased in June, signaling strength in the economy even as manufacturers face parts and labor shortages.

The Fed kept policy rates and asset purchases unchanged at this month's FOMC meeting and repeated language that rising inflation reflected "transitory factors."

Widespread business re-openings helped the 2nd qtr GDP grow at a 6.5% annual rate, even higher than earlier in the year. The economy's size now exceeds its pre-pandemic level.

New home sales dropped to a 14-month low in June, suggesting the housing market is losing momentum amid soaring prices and an acute shortage of properties.

National home prices in May were up 16.6% over a year ago, the highest reported by CoreLogic Case-Shiller in 30+ years, as strong demand slammed up against weak supply.

Low inventory caused pending home sales to drop in June, down 1.9% annually. However, Realtor.com reports the number of newly listed homes in June rose 5.5% year over year.