Bill Gross at PIMCO can certainly be considered an A-list guru. His views on the Bond Market and interest rates are spot on, in part because he manages a sizable chunk of that market through his funds at PIMCO. He analyzes some recent data put out by the Federal Reserve in his October outlook.

I think it’s pretty clear that real housing prices have peaked on average four to six quarters after the central bank first raises interest rates and following what appears to be 200 basis points of short-term rate hikes. ... I find it illuminating that our own Fed has raised policy rates for nearly five quarters now to the tune of 275 basis points, dead on the average point where real housing prices have peaked over the past 35 years.

In other words, THIS IS THE PEAK in housing price inflation. As the Home Equity ATM shuts down, recession is not only likely, but practically inevitable.

You have been forewarned!