Retail sales jumped 5.3% to start 2021, well ahead of the 1.2% expectation. The big move came as millions of consumers received $600 stimulus checks.

Producer prices increased in January by the most since 2009 as the cost of goods and services surged. This points to a potential rise in wholesale inflation and is not good for rates.

January Fed meeting minutes indicate officials see the economy "far from" the Fed's goals for the labor market recovery and inflation, so policy is unlikely to change soon.

Housing starts fell more than expected in January amid soaring lumber prices and labor shortages. However, permits were up 10.4%, pointing to increases in the coming months.

The NAHB says builder confidence has picked up after 2 months of declines despite labor and lumber challenges. Strong buyer demand helped offset these issues.

Strong demand also means buyers are increasingly facing fierce bidding wars and home prices are surging. About 40% of potential buyers surveyed keep getting outbid.