US Economy Stagnates Amid Rising Mortgage Rates and Gas Prices

The US economy expanded at a sluggish pace of 1.5% in the second quarter, according to recent data from the Commerce Department.

This growth is down from the 2.1% rate seen in the first three months of this year and falls short of economists' expectations.

However, consumer spending rose at a 3.2% annual clip, up from 0.5% in the January-March period.

The Federal Reserve's favored measure of inflation grew more slowly last month but remained above the central bank's 2% target.

Additionally, the average long-term US mortgage rate rose to its highest level in a year, reaching 6.66%, making it harder for prospective homebuyers to secure loans.

Americans' confidence in the economy also fell this month as gas prices ticked up and the conflict between the US and Iran escalated.