Friday's jobs report virtually cements that the Federal Reserve will approve an interest rate cut when it meets later this month.

Federal Reserve officials appear more likely to cut rates this month after data showed the U.S. labor market remained strong but continued to cool in November, with a deeper debate to come next year over whether to pause further rate reductions.

The U.S. Federal Reserve was locked in a battle with soaring inflation throughout 2022 and 2023, which prompted the central bank to rapidly increase the federal funds rate (overnight interest rates). That triggered a steep climb in interest rates, including the 30-year fixed mortgage rate, which hit a two-decade high of 7.8% toward the end of 2023.

These are today's mortgage and refinance rates. Mortgage rates are down this month, and they should drop further next year as the Fed lowers rates.

The conventional wisdom among economists and traders is that the Federal Reserve is going to cut its benchmark interest rate by another quarter of a percentage point on Dec. 18, and then pause at its first meeting in 2025.

The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.

For many investors, Friday's jobs report confirmed expectations that the Federal Reserve is on track to cut interest rates

A falling-interest-rate environment is generally a positive catalyst for the stock market. Having said that, there are some areas of the stock market that tend to benefit from falling rates more than others.

Friday’s jobs data showing an uptick in the unemployment rate has caused traders to ramp up bets that the Federal Reserve will cut interest rates later this month. Federal-funds futures recently showed a roughly 87% chance that the Fed will announce a rate cut on Dec.

CNBC's Steve Liesman joins 'Squawk on the Street' to break down the November jobs report.