A quick update on what happened this week in the housing and financial markets.

A quick update on what happened this week in the housing and financial markets.

Fed Chair Janet Yellen eased concerns of a pending policy rate increase. Her testimony helped to stabilize rates this week.

Durable goods orders rose in January, showing manufacturing may be starting to stabilize. This points to a strengthening of the U.S. economy.

Consumer prices dropped in January, led by cheaper gas. Low inflation means the Fed may have to start the process of hiking rates later than June.

January new home sales fell only slightly despite big declines in the snow-battered Northeast. Supply rose to its highest level since 2010.

January existing home sales were at a 9-month low but were still up 3.2% from a year ago. Tight inventory and low rates continue to be factors.

Freddie Mac's Multi-Indicator Market Index improved for the 4th consecutive month, showing that housing is stabilizing at a national level.

Teacher: "What is the chemical formula for water?"

Student: "HIJKLMNO"

Teacher: "What are you talking about?"

                                                                        Student: "Yesterday you said it's H to O!"