Markets were extremely volatile last week, roiled by geo-political events, economic data and concerns over the health of Credit Suisse, a large bank.

Mortgage rates reached 7% and yields on 10-year Treasurys were briefly above 4% before both rates declined later in the week. Markets are swiveling between the Fed’s current restrictive rate policy rhetoric and the potential for a Fed “pivot,” where hikes to the target funds rate would be less severe in the event of slowing economic activity. The MBA reported that mortgage applications last week fell to the lowest level in 25 years, reflecting a challenging housing market where buyers face affordability obstacles and low inventory. Economic data last week showed continued strength in labor markets and a key inflation measure (PCE) still well above the Federal Reserve’s target level.

Investors will be focused on payroll data later this week to better understand the strength of the economy and potential Fed actions going forward. Next week will see inflation data releases that could move rates significantly, depending on actual levels versus market expectations.