Mortgage refinance rates rose to 6.35% on Thursday, June 11, 2026, as newly released economic data showing strong job growth and surging inflation reinforced expectations that the Federal Reserve may raise interest rates later this year.
The 30-year fixed-rate refinance rate climbed to 6.35% according to Zillow data, part of a broader upward trend in mortgage rates this week. The 30-year fixed-rate mortgage for purchases also increased to 6.40%, up from 6.33% just days earlier, according to Yahoo Finance.
The rate increases followed two significant economic reports. The U.S. added 172,000 jobs in May, beating expectations, while inflation jumped to 4.2% year-over-year in May 2026—the highest level since April 2023, according to data from the Bureau of Labor Statistics released June 10. The inflation surge was largely driven by surging energy prices tied to the Iran War.
“Together, the data reinforce a ‘higher-for-longer’ view: Markets have largely abandoned hopes for rate cuts this year, Treasury yields rose, and mortgage rates restarted their ascent,” Kara Ng, a senior economist at Zillow, said in a statement to Yahoo Finance.
About two-thirds of traders now expect the Federal Reserve to raise benchmark interest rates at least once before the end of the year, according to CME FedWatch data cited by Yahoo Finance. Although the Fed does not directly set mortgage rates, they exert significant influence through expectations of future monetary policy decisions.
Mortgage rates have remained elevated throughout June, hovering around 6.5% and eroding housing affordability for potential buyers. The 15-year fixed-rate refinance stood at 5.82%, while adjustable-rate options ranged from 6.34% to 6.46%, according to Zillow data.
Despite the higher rates, home-buying activity picked up in May, suggesting that the traditional spring and early-summer real estate season has maintained momentum even as borrowing costs remain elevated. The combination of strong employment data and inflation pressures has created a complex environment for borrowers weighing refinancing decisions.
Sources
- Yahoo Finance — Confirmed 30-year fixed-rate refinance at 6.35%, mortgage rate increases, job growth of 172,000 in May, inflation at 4.2%, and CME FedWatch trader expectations for Fed rate hikes
- Zillow — Provided current refinance rates and economist commentary from Kara Ng on inflation and rate expectations
- Bureau of Labor Statistics — Released Consumer Price Index data showing 4.2% inflation in May 2026
- Freddie Mac — Reported 30-year fixed-rate mortgage at 6.52% in the week through Wednesday