The Fed left its policy rate unchanged this week, but markets are still betting on at least one hike before the end of the year.

Economic growth was weaker than expected in the second quarter. GDP, a broad measure of goods and services, grew just 1.5%.

The Fed's favored gauge of inflation, the PCE index, came in at a 3.7% annual rate for June. Core inflation was up only 0.1% for the month.

New home sales rebounded in June, but higher mortgage rates and affordability challenges continued to keep many buyers on the sidelines.

Rising mortgage rates led to a 6.4% drop in mortgage application volume last week, led by a 10% decrease in refi apps.

NAR reports sales of homes priced above $1 million rose 18% from a year ago in June, though overall existing home sales fell 2.4%.