The Fed left policy rates unchanged at this week's meeting and announced it will begin reducing bond purchases by $15 billion a month starting in November.

Jobless claims for last week came in lower than expected at 269,000, a new pandemic low, as the labor market continues to recover. Continuing claims fell to 2.1 million.

Private companies added 571,000 jobs for the month according to ADP, beating the 395,000 Dow Jones estimate. Leisure and hospitality led the way with 185,000 new positions.

Zillow announced this week it will be exiting Offers, the business it started in December 2019 to buy and flip homes. The move will eliminate 25% of their workforce.

Mortgage applications fell last week, with purchase apps down 2% for the week and 9% from a year ago. Refi apps dropped 4% for the week and 33% from last year.

High prices and low inventory continue to restrain purchase activity, but current application levels still point to a healthy housing market and demand.