US Economy Expands at Slowest Pace Since Last Year

The US economy grew at a sluggish pace of 1.5% in the second quarter, according to the Commerce Department. This growth was weighed down by rising imports but consumer spending rose at a 3.2% annual clip. Business investment, excluding housing, increased at an 8.4% pace.

The average long-term US mortgage rate has reached its highest level in a year, hitting 6.66%. This is bad news for prospective homebuyers who are already facing high borrowing costs. The benchmark 30-year fixed-rate mortgage rate rose from 6.58% last week and is now higher than it was a year ago.

Americans' confidence in the economy has stalled, with the Conference Board's consumer confidence index falling to 90.8 in July. This is due in part to rising gas prices, which have increased again after a brief drop. The average price for a gallon of regular gas is now over $4.

The Federal Reserve left its key interest rate unchanged at around 3.6%, despite some economists predicting a hike. Meanwhile, unemployment claims rose last week but remain in the healthy range. The number of Americans applying for jobless aid increased by 9,000 to 197,000.