Cramer: High interest rates on mortgage loans will hurt the economy

"Rising mortgage rates may soon have a negative impact on the US economy, consumption and profits of companies." Cramer said recently in a statement.

In addition, he paid extra attention to the profits of the companies and warned that they would start to deteriorate because of the high interest rates on mortgages, which is currently 5%. For him, this interest rate is too high for the US economy.

Thirty-year fixed mortgage interest rate until last Thursday was 4.85% according to Freddie Mac, and from the previous week was 4.9%. This happens with an environment of rising bonds. A year ago, the same thirty-year interest rates were at 3.88%.

Cramer was sufficiently critical of the Federal Reserve and his chairman, Jerome Powell, mentioning that the Fed's monetary strategy had not included signals of the weakening economy and, above all, the West in mortgage-backed companies. In his view, the Federals are blinded in their quest to normalize monetary policy, and have been cut off from their traditional, consistent approach to data and statistics. The next rise in interest rates for this year is expected in December.

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