U.S. inflation likely worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year.

If year-on-year total and core CPI consumer inflation rates accelerate, financial markets risk turbulence as investors’ 2025 interest rate cut expectations fall further.

Due to the stronger-than-expected jobs report, Bank of America economists revised the Fed outlook for this year: “We no longer expect any additional rate cuts,” economists wrote in a report on Monday. "Inflation is stuck above target, with risks skewed to the upside, activity is strong, and the labor market now appears to have stabilized."

When the Fed cuts rates, it often leads to lower mortgage rates because borrowing costs drop overall. Unfortunately, though, mortgage rates have instead climbed higher since the F

These are today's mortgage and refinance rates. Mortgage rates have increased this month, and it's unclear if they'll drop much this year.

Despite hopes that the Federal Reserve’s interest rate cuts last year would drive down the borrowing rate for home loans, mortgage rates are hovering around 7%. A positive end-of-year jobs report is partly to blame,