Minutes from their last meeting show the Fed feels the economy is close to reaching their prescribed targets to begin tapering bond buying soon, pressuring rates higher.

Consumer prices grew slightly more than expected in September, when food and energy increases offset declines in used car prices. Inflation can contribute to higher rates.

Jobless claims fell last week to the lowest since March 2020, as employers hang onto their workers in the tight labor market. Continuing claims dropped to 2.6 million.

Foreclosures are rising, but numbers should stay relatively low due to high levels of home equity and aggressive modifications by lenders.

Purchase applications increased 2% for the week but were 10% lower than the same week one year ago. Refinance applications fell 1% for the week and were 16% lower year over year.

A recent survey of agents shows rising prices are causing problems with appraisals. 23% of contracts were delayed and 12% then terminated due to appraisal issues, according to the survey.