Space bar isn't creating spaces when I use text boxes.

Hi All!  I'm trying to use text boxes in an artboard and all of a sudden for some reason the space bar on my mac air isn't working when I add a text box.  I checked in other places like in Pages and Keynote and it works perfectly well so I'm really puzzled.  Also when i click my space bar a blue thin line surrounds a grey house image at he top left.  Not sure what that is either.  I'm a beginner, so I can only do basic stuff and now I can't use text boxes 😞

Thanks guys!