Armed with consumer and wholesale inflation reports, Wall Street economists predict the Federal Reserve’s favorite price gauge will show just a mild increase in November and justify an interest-rate cut.

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.