US Economy Shows Sluggish Growth Amidst Rising Mortgage Rates and Declining Confidence
In the United States, the economy experienced sluggish growth of 1.5% in the second quarter, while the average 30-year mortgage rate climbed to its highest point in a year at 6.66%. Consumer spending increased, but overall economic confidence declined due…
Miami Fort Lauderdale, FL, August 1, 2026 —
The United States economy demonstrated sluggish growth in the second quarter, expanding at a rate of 1.5%. This figure reflects a slowdown in economic activity despite an increase in consumer spending during the same period.
Contributing to the challenging economic landscape, the average interest rate for a 30-year mortgage has reached its highest point in over a year, standing at 6.66%. This rise in borrowing costs for homebuyers comes as overall economic confidence among consumers has seen a decline. Factors cited for this decrease in confidence include escalating gas prices and ongoing geopolitical tensions.
Despite these economic pressures, the Federal Reserve has opted to maintain its benchmark interest rate. The rate has been held steady at approximately 3.6% for the fifth consecutive meeting. This decision comes even as some officials within the Federal Reserve have expressed a preference for a rate hike. The rationale behind this differing view is the ongoing effort to combat persistent inflation.
While consumer spending has shown an increase, the broader economic sentiment has been impacted by external factors. The combination of higher living costs, particularly at the gas pump, and uncertainties stemming from international relations appears to be weighing on consumer outlooks. The Federal Reserve’s continued stance on interest rates suggests a cautious approach as it navigates these competing economic signals.
Story summarized from the original created by AP on apnews.com, see more information here.
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