Oil Prices Are About to CRUSH the Housing Market

There is no end in sight to the embargo / closure of the Strait of Hormuz. I think oil is going high. I think if this war continues, which it likely will, we could be $120 to $150 a barrel easy late summer early fall. Also, as oil prices are rising, so too are bond yields. The yield on a 10-year is 4. 43. This is the highest it's been since the Liberation Day sell-off. I believe these rates are headed much higher. That's going to crush the housing market. That's going to send mortgage rates to new highs. And higher fuel prices are going to be recessionary. Powell did kind of get that right. When oil prices go up, people have less money to spend, so spending goes down other places. And if demand goes down for some things because the money isn't there because it's spent on food and energy, then the people who sell those things have to cut prices. Higher energy prices can result in lower other prices. Overall, the consumer is spending the same amount of money, he's just not getting as much stuff.