After three weeks of mostly staying steady, average mortgage rates rose this week. However, rates still remain at multiyear lows, keeping borrowing costs low for those shopping for homes this summer.

“The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short-term interest rates, which should provide support for business and investor sentiment,” says Sam Khater, Freddie Mac’s chief economist. “Despite this slight increase in rates, home buyers are taking advantage of the multiyear low rates in droves, which is evident in the consistently higher refinance and purchase application volumes. The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”

Freddie Mac reported the following national averages with mortgage rates for the week ending July 18:

• 30-year fixed-rate mortgages: averaged 3.81%, with an average 0.6 point, up from last week’s 3.75%. Last year at this time, 30-year rates averaged 4.52%.
• 15-year fixed-rate mortgages: averaged 3.23%, with an average 0.5 point, rising from last week’s 3.22% average. A year ago, 15-year rates averaged 4%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.48%, with an average 0.4 point, rising from last week’s 3.46% average. A year ago, 5-year ARMs averaged 3.87%.

Technology is entering more bathroom design, and it’s one of the top design trends of the year, according to the 2019 Bathroom Design Trends Study from the National Kitchen & Bath Association. The survey results are based on responses from 583 NKBA members, consisting of designers, remodelers, architects, and product manufacturers.

Some of the technology solutions seeing the most growth in popularity are temperature control and thermostat smart controls, water conservation technology, and internet-connected products, the survey notes. Other technology solutions entering bathroom design include controls for lighting, music, and water temperature; leak detectors; mirrors with a TV; app-enabled control for radiant floors; and digital shower valves, the survey notes.

Designers also noted that some of the most interesting new products for bathrooms are shower surrounds (such as solid-surface walls and touch controls) and floating vanities and open shelves.

But survey respondents agreed that more innovation is still needed in several areas in bathroom design, such as hardware, sinks, and cabinetry. For example, designers said they’d like to see more innovations around finish options for linear drains, grab bars, and safety products. For cabinetry, they’d like to see improved solutions for smaller areas and storage of jewelry, hair products, and other essentials as well as more wall-hung cabinetry, according to the survey.

More construction for single-family homes was underway last month, possibly offering a small relief to markets experiencing an ongoing housing shortage. Most economists, however, say it’s not nearly enough to keep up with buyer demand.

An increase in single-family housing starts in June helped to offset some of the drop in multifamily production, but total housing starts still edged 0.9% lower in June to a seasonally adjusted annual rate of 1.25 million units, the U.S. Commerce Department reported Wednesday. This marks the second consecutive month for a decrease in U.S. homebuilding, even though this is traditionally the busiest time of year for housing.

Broken out, single-family starts rose 3.5% in June to 847,000 units, which did make up for some of the sector’s decrease in May. The volatile multifamily sector, which includes apartment buildings and condos, dropped 9.2% in June to a pace of 406,000 units.

“The relatively flat housing starts data in June is due to a decline in multifamily production, which still remains somewhat elevated due to affordability concerns in the for-sale market,” says Robert Dietz, chief economist of the National Association of Home Builders. “The census data show that the only region showing single-family construction gains for the first half of 2019 is the South, where housing is generally more affordable relative to incomes.”

However, last month, the South posted a 9.2% drop in combined single-family and multifamily housing starts, while the West saw a 4.9% decline. On the other hand, combined starts in the single-family and multifamily sector rose in June by 31.3% in the Northeast and by 27.1% in the Midwest.

Builders have reported several challenges in ramping up new-home inventories in markets nationwide, despite persistent calls from the real estate industry to do so. Builders say labor and lot shortages and the rising costs of building materials have prevented them from increasing construction.

The challenges don’t appear to be easing either. Housing permits, a gauge for future housing production, fell to a two-year low in June. Permits nationwide dropped 6.1% last month to a 1.22 million unit annualized rate. Single-family permits last month did eke out a 0.4% increase to 813,000 units, while multifamily permits dropped 16.8% to a 407,000 pace.

A “move-in ready” home may mean different things to different buyers—everything from having freshly painted walls to having window blinds included.

Bungalo, a real estate platform for buying newly renovated homes online, surveyed more than 550 home shoppers between the ages of 25 to 54 on what elements are required for a home to be considered “move-in ready.”

If you’re going to use the term to describe your listing, here’s what most buyers expect the home to have:

• 58% say it should be freshly painted
• 55% say it should have new flooring
• 54% say it should have new countertops
• 51% say it should have updated cabinetry
• 51% say it should have modern finishes (faucets, doorknobs, etc.)
• 49% say it should have modern light fixtures
• 45% say it should have blinds included
• 45% say it should have a renovated master bath
• 34% say it should have a furnished fridge
• 32% say it should have a furnished washer & dryer

After steady declines since the beginning of the year, mortgage rates appear to be leveling off. But that still bodes well for home buyers.

“While rates have moderated, we’re still at nearly three-year lows, which is good news for buyers looking to purchase a home before school starts,” says Sam Khater, Freddie Mac’s chief economist. “The recent stabilization mortgage rates reflects modestly improving U.S. economic data and a more accommodative tone from the Federal Reserve to respond to the rising downside economic risk from trade tensions and soft global economic data. On the housing front, the latest weekly purchase application data suggests home buyer demand continues to rise, which is consistent with the slowly improving real estate data from the last two months.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 11:

• 30-year fixed-rate mortgages: averaged 3.75%, with an average 0.5 point, unchanged from last week. Last year at this time, 30-year rates averaged 4.53%.
• 15-year fixed-rate mortgages: averaged 3.22%, with an average 0.5 point, rising from last week’s 3.18% average. A year ago, 15-year rates averaged 4.02%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.46%, with an average 0.4 point, rising from last week’s 3.45% average. A year ago, 5-year ARMs averaged 3.86%.

The U.S. House of Representatives approved a bill this week that would cut the cost of upfront mortgage insurance fees on Federal Housing Administration loans for first-time home buyers who take part in housing counseling. The bill requires first-time buyers to complete a housing counseling program about sustaining homeownership in order to be eligible for the 25-basis-point discount on their FHA mortgage insurance loan.

The Housing Financial Literacy Act of 2019, H.R. 2162, will next go before the Senate for a vote.

The thrust of the bill is to have first-time home buyers improve their financial literacy through a counseling course certified by the Department of Housing and Urban Development.

“Whether you are managing your credit, creating a budget, saving for retirement, or purchasing a home, understanding the basic principles of planning, saving, and investing for the future is vitally important,” Rep. Joyce Beatty, D-Ohio, who co-sponsored the bill with Rep. Steve Stivers, R-Ohio, said in a statement. “Studies show that pre-purchase housing counseling equips first-time home buyers with the much-needed financial skills and tools to make informed financial decisions that ultimately benefit not only their families but also the surrounding neighborhood and our entire economy.”

The National Association of REALTORS® said in a statement that it supports the bill. NAR President John Smaby said in the statement, “NAR strongly supports efforts to reduce FHA premiums. H.R. 2161 will promote affordable and sustainable home ownership for American families.”

The Mortgage Bankers Association also spoke out in support of the bill, saying the association has long advocated for increased access to housing counseling to support first-time home buyers. The MBA, however, cautioned that any changes to the FHA insurance premiums should be carefully made to preserve the health of the FHA insurance fund and not negatively impact it.