That would push it further from the Fed’s 2% goal. The core rate, meanwhile, would either hang tight at 2.8% or perhaps rise a tick. Why, then, would the Fed still cut interest rates? Most central bank officials believe inflation will begin to trend ...

Average mortgage rates surged to around 7% last month, but they've dropped recently, with markets betting that the Federal Reserve will reduce the federal funds rate on Dec. 18.

The market sees the probability of another 25 basis point interest rate cut at next week's Federal Reserve meeting as rising despite inflation ticking higher in November.