That was quite a week for the financial markets and prospective home buyers will have some mixed feelings going into next week.

February Inflation figures released on Tuesday provided little evidence of a pickup in inflationary pressure, easing market panic over the prospects of a more aggressive FED, while yields slid through the week, as U.S President Trump wielded the axe, the latest victim being Rex Tillerson. Appointments of replacements for both Cohn and Tillerson raised some eyebrows and, while macroeconomic data released through the week was skewed to the positive, demand for Treasuries rose through the week, leaving 10-year Treasury yields at 2.84% by the end of the week, down 5 percentage points from the previous Friday’s 2.89% and U.S equity markets in the red again.

The effects of soft wage growth may be offset by the tax reform bill and a pause in the rise in mortgage rates may be positive, but with February’s building permits and housing starts falling by 5.7% and 7% respectively, inventory shortages are unlikely to reverse anytime soon.

Prelim March consumer sentiment figures, released on Friday continued to sit at 14-year highs, supported by a tight labor market, but the survey also revealed concerns of a fall in household income and a pickup in inflationary pressures, the combination of which would lead to even more home buyers being priced out of the market.

Freddie Mac rates for new mortgages last week were quoted to be:

• 30-year fixed rates loan fell from 4.46% to 4.44% last week, while up from 4.30% a year ago.

• 15-year fixed rates fell from 3.93% to 3.90%, while up from 3.50% from a year ago.

• 5-year fixed rates stand at 3.67%, up from the previous week’s 3.63% and from last year’s 3.28%.

Average interest rates for 30-year fixed, backed by the FHA increased from 4.68% to 4.73%, the highest level since Jul-11, while the average interest rate for 30-year fixed with conforming loan balances increased from 4.65% to 4.69%, the highest level since January 2014. 30-year rates for jumbo loan balances in contrast, continued to fall, down from 4.56% to 4.55%.

Refinancing rates are currently as follows:

• 30-year fixed to refinance rates slipped from 4.31% to 4.27%,

• 15-year fixed to refinance rates were down from 3.72% to 3.68%.

• 10-year fixed to refinance rates fell from 3.66% to 3.60%.

With 30-year fixed mortgage rates easing for the 1^st time in 10-weeks, mortgage applications continued to rise in the week ending 9th March, up by 0.9% on an adjusted basis, according to the Mortgage Bankers’ Association, following the previous week’s 0.3% increase.