Oil is up again today, to $131.03/bbl, even though demand is falling, and retail gas prices hit a record for 21st straight day, $3.944/gallon.

I think the only question is whether it will break $4/gal before June.

Paradoxically enough, the dollar strengthened, despite the higher oil prices.

Finally, we’re seeing a drop in mortgage applications, because rates are rising.

Rates will go up eventually, and when they do, the housing market will get even more ugly.