Consumer prices rose 5.3% from a year ago and only 0.3% from July, a smaller than expected increase in inflation. The lower inflation reading helps keep mortgage rates low.

Retail sales posted a surprise gain in August, up 0.7% vs expectations of a 0.8% decline. The increase in consumer spending shows the economy is continuing to recover.

Jobless claims rose slightly last week, mostly due to a regional jump after Hurricane Ida. Continuing claims fell to a fresh pandemic low, now down to 2.7 million.

Non farm payrolls increased by just 235,000 in August vs. expectations of 720,000. The unemployment rate fell to 5.2% for the month, and wages rose 4.3% year-over-year.

The leisure and hospitality industries saw wages jump 1.3% for the month and 10.3% for the year in August. Wage growth is inflationary and could push rates higher.

Initial jobless claims last week fell to a pandemic low of 310,000, and continuing claims fell, too. The expanded federal unemployment benefits expired on Monday, Sept. 6.

A recent survey found that 48% of renters worry they won't ever be able to buy a home, especially millennials, as tight inventory and rising prices continue to be a concern.

Mortgage demand fell to the lowest level in 2 months last week, despite low rates. Purchase applications were down only 0.2% for the week but were 18% lower year over year.

With home buyers flooding the market and foreclosure moratoriums removing some potential inventory, house flippers are struggling to find enough fixer-upper houses to flip.

An inflation measure the Fed uses to set policy rose 3.6% in July from a year ago. The increase met Wall Street expectations and tied the highest level in about 30 years.

At last week's Jackson Hole symposium, Fed Chair Jerome Powell signaled the Fed would begin tapering bond purchases by the end of the year, which could pressure rates higher.

Weekly jobless claims dropped again last week, hitting 340,000. Continuing claims fell to 2.78 million. Layoffs reached a 24-year low in August.

July’s pending home sales dropped 1.8% from June and were down 8.5% from a year ago. Inventory is slowly increasing, but there is still not enough supply to match demand.

Home prices rose 18% annually in June, up from a 16% increase in May, according to Case-Shiller. Prices are now 41% higher than their peak during the housing boom in 2006.

Construction spending was up in July, despite land and labor shortages. Single-family homebuilding spending grew 0.9%, driven by robust demand for housing.

Orders for big-ticket items slipped last month as manufacturers continued to navigate a supply chain crunch that has resulted in higher materials costs and longer delivery times.

The economy grew at a robust 6.6% annual rate last quarter, slightly faster than previously estimated, pointing to a sustained consumer-led rebound from the pandemic recession.

Initial unemployment claims were little changed over the past week, hovering around pandemic-era lows and showing further signs of job market healing.

Existing home sales rose for the second straight month and were barely higher than in July 2020. The median price of an existing home sold was $359,900, up 18% from last year.

New home sales crept up in July, rising 1% over last year. Builders have struggled to take advantage of demand, hampered by soaring lumber prices and building materials shortages.

Mortgage applications increased last week, with purchase applications posting their largest rise since early July. Refinance applications were also up slightly for the week.

Retail sales declined 1.1% in July, more than the 0.3% expected drop. Consumer spending is nearly 70% of all economic activity and a good gauge of overall economic health.

Minutes released from last month's Fed meeting show a willingness to start reducing asset purchases before the end of the year, which could push mortgage rates higher.

Unemployment claims hit a 17-month low last week, pointing to another month of robust job growth. Continuing claims also dropped to levels last seen in March 2020.

Housing starts were up 6.3% in June, although building permits for future activity were down slightly. Lumber prices are falling, which could help the new home market.

Home builder sentiment in August fell to the lowest level in a year as buyers face sticker shock. The sharp drop in the price of lumber hasn't yet impacted home prices.

Last week's overall mortgage applications were down 4% from the previous week. Purchase applications fell 2% for the week and were 19% lower than a year ago.