Minutes from last month's Fed meeting showed officials were not yet ready to set a timeline for scaling back asset purchases due to high uncertainty around the economic outlook.

Strong jobs data from June shows the labor market continues to recover. Nonfarm payrolls increased 850,000 for the month, led by job recovery in the leisure and hospitality industries.

Lower wage workers are seeing higher wages, as businesses struggle to find and retain help. Retailers and restaurants are having to pay more to hire workers to meet demand.

In a Fannie Mae survey, 64% of respondents said it's a bad time to buy a home, up from 56% last month. However, 77% said it was a good time to sell, up from 67%.

Mortgage applications dropped for a 2nd week. Refinance apps fell 2% and were 8% lower than a year ago. Purchase apps were down 1% for the week and 14% below last year.

Widespread shortages on building materials continue to prompt home builders to raise prices. The cost of materials is up 26% year over year.