A rapid slowdown in the rate of U.S. inflation appears to have lost steam, potentially raising questions about how aggressively the Federal Reserve will cut interest rates early next year.

The Federal Reserve cut interest rates by 0.25% on November 7. More interest rate cuts are likely through the end of 2026.

On Nov. 7, the Federal Reserve implemented a 0.25% reduction to the federal funds rate, its second cut in over four years. Prospective homebuyers are eager for a silver lining in the housing market. But experts don't anticipate dramatically lower rates before the end of the year.

Mortgages are more influenced by long-term bonds, which continue to rise over a combination of factors, such as better-than-expected growth and uncertainty about the impact of President-elect Trump's policies on inflation and the deficit.

Traders trimmed bets Tuesday on Federal Reserve interest rate cuts next year, as early tallies for the U.S. presidential election rolled in through the evening.

The Fed’s future moves are now more uncertain in the aftermath of the election, given that Donald Trump’s economic proposals have been widely flagged as potentially inflationary.

Jason Furman, former chairman of the Council of Economic Advisers, says he expects the Federal Reserve to cut rates again in December, but after that, the pace of cutting will slow down. He's on "." (

The Federal Reserve has made two consecutive interest rate cuts but potential homebuyers are wondering when mortgage rates will drop. CBS News MoneyWatch correspondent Kelly O'Grady breaks down what this means.