Russia’s invasion of Ukraine has started to impact the prices at the pump, which could have a knockdown effect on the housing market.

How high are gas prices right now?

The national average for a gallon of gas recently hit $4.06, which is the highest since July 2008, according to AAA.

  • That might not slow down as the average price is expected to hit a new all-time record this week, according to Gas Buddy. 
  • Gas prices could hit $4.25 per gallon by Memorial Day, according to Gas Buddy. The current record is $4.10 per gallon.
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Will rising gas prices impact the housing market?

It’s still unclear how increases to gas prices will impact the housing market.

  • “The impact on the U.S. housing markets from the Russia-Ukraine conflict has been muted so far,” George Ratiu, manager of economic research at, told Fortune

However, the Ukraine-Russia war could lead to increased prices for oil and energy, especially now that the U.S. said it will ban Russian oil imports. Prices will skyrocket for oil and energy.

Tom LaSalvia, senior economist and housing sector specialist at financial services firm Moody’s Analytics, told Fortune that rising energy costs may make U.S. homebuyers less interested in making big purchases.

  • “It’s more on these knock-on effects through the economy, I think, that’s the mechanism there,” LaSalvia said. “And then all of those things — energy prices, inflation, the apprehensive consumers — are going to ultimately affect what households are going to do in terms of housing.”
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Ratiu told Fortune that rising oil and energy prices will then make life hard at home for most families, too.

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