America In Focus: US economy expands at sluggish pace, mortgage rate hit the highest level in a year
Summary
The U.S. economy grew slowly at a 1.5% rate in the second quarter of 2026, with consumer spending increasing but overall growth below expectations. Meanwhile, mortgage rates for 30-year loans reached their highest point in a year, making home loans more expensive for buyers.Key Facts
- The U.S. economy grew 1.5% from April to June 2026, slowing down from 2.1% in the previous quarter.
- Consumer spending, which makes up about 70% of economic activity, rose by 3.2% in the second quarter.
- Business investment, excluding housing, grew 8.4%, driven partly by increased spending on artificial intelligence.
- The average 30-year fixed mortgage rate increased to 6.66%, the highest in a year.
- The 15-year fixed mortgage rate also rose to 6.04%.
- Inflation remains above the Federal Reserve’s 2% target, though growth in inflation slowed last month.
- Gas prices rose again to about $4.11 per gallon after earlier declines.
- Consumer confidence stayed low in July, partly due to rising gas prices and conflict in the Middle East.
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