Mortgage rates in the US have reached their highest level this year, standing at 7.1%, more than double the rates from two years ago. This has led to a nearly $1,000 per month increase in average monthly mortgage payments on a $400,000 home. The surge in rates has caused a 20% drop in new home listings, while homeowners are hesitant to sell as they are locked into low-rate deals, resulting in a decrease in available properties. The high rates, combined with low housing inventory, are pricing out many potential homebuyers from the market, and it's expected to continue worsening as the majority of Fed officials expect another two rate hike this year.

EQUITY

Wall Street tumbled in a widespread sell-off, driven by almost certainty over interest rate hikes from the Federal Reserve due to strong labour market data. Investors also grew worried about rising bond yields and stagnant profits, which isn't optimal for the stock market. ExxonMobil and PayPal are among the big cap stocks that were hit the hardest.

GOLD

Gold has hardly moved in the early Asian session as concerns about the Fed tightening again after strong U.S. data pushed the 10-year bond yield back to 4%. However, it's possible that gold will stay above $1,900 per ounce. The price remains uncertain after a quick 1% drop, but fear of recession may reassert gold as the champion again this year.

OIL

Oil prices rose slightly on Friday, buoyed by strong demand as U.S. inventory dropped more than expected. The positive demand outlook during the peak summer travel season and production cuts by Saudi Arabia and Russia contributed to the price gains, although there are concerns that higher U.S. interest rates will keep oil lower.

CURRENCY

The US dollar eased after a temporary rally as strong US labour market data cemented the likelihood of another Fed rate hike, but high bond yields offset the gain just as fast. The positive data raised concerns about tighter monetary policy and led to a risk-off sentiment in the market. Meanwhile, the yen strengthened as a safe-haven currency, and the pound reached two-week highs on expectations of a Bank of England rate hike.