The U.S. added more jobs than expected in June, and the unemployment rate declined despite expectations that it would increase. Mortgage rates may rise slightly in the short term, but they’ll stay mostly unchanged.  The June jobs report was stronger than expected. That means mortgage rates will tick up slightly today, but stay mostly unchanged. The strength of the latest jobs report rules out a July rate cut; however, for the second month in a row, the headline strength disguises underlying weakness–which leaves a September rate cut on the table.  The numbers: 147,000 jobs were added in June, more than the 110,000 expected by forecasters and 144,000 in May. Similarly, the unemployment rate declined to 4.12% from 4.24% despite expectations it would increase to 4.3%. For the first time since January, revisions to previous months were positive, adding 16,000 more jobs than earlier reported. The unemployment rate has been bouncing …

The daily average mortgage rate dipped to 6.67% to start July, down from roughly 7.1% five weeks earlier. On-the-fence house hunters should consider jumping in while they have more purchasing power–and more negotiating power.  A homebuyer on a $3,000 monthly budget has gained $16,000 in purchasing power in the last five weeks. That buyer can afford a $455,000 home with a 6.65% mortgage rate, roughly the daily average on July 1. That’s the lowest daily average mortgage rate since early April. Declining rates are giving homebuyers some wiggle room in their budgets. Rates fell from a recent peak of 7.08% in late May to 6.67% at the start of July. On a $3,000 monthly budget, a buyer could have purchased a $439,000 home with a 7.08% rate.    To look at affordability another way, the monthly mortgage payment on the median-priced U.S. home, which goes for roughly $441,000, is $2,705 …