Crude oil crossed $78 per barrel today and is nearing its all-time high of $78.40.  Meanwhile, gas prices are continuing on their drastic downward trajectory, according to gasbuddy.com.

But, just because because gas prices aren't going up (right now), it doesn't mean that the run-up in crude oil is contained.

Crude oil is used to make gasoline, but it's also in the production of other products, too.  In fact, only 20% of a barrel of crude oil ends up at your local gas station.

Crude is a raw material and higher raw material costs have to get made up somewhere by the companies along the supply chain. 

We'll have to keep watching to see how this manifests itself going forward.  Maybe airline tickets?  My flight to Fort Lauderdale this September jumped by $100 overnight last night.  I wish I had booked Sunday.

Today, mortgage rates are flat.  If oil happens to pop $80 in the coming days, though, expect for rates to fall.

(Image courtesy: Department of Energy)

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.