We have some important inflation readings coming this week that could provide additional relief for mortgage rates.

The Consumer Price Index (CPI) report is due Wednesday, and expectations are for headline inflation to ease from 3.5% to 3.4%. The core reading, which excludes the more volatile food and energy categories, is expected to decline from 2.6% to 2.5%.

While those may look like small moves, the direction matters. Combined with the disappointing July employment report and the downward revisions to May and June payrolls, we are starting to see a clearer picture of an economy that is cooling.

This is exactly the combination the Federal Reserve needs to see: inflation continuing to move lower while the labor market loses momentum. If that trend continues, it should give the Fed more room to move toward lowering the Federal Funds Rate.

Of course, the Fed doesn’t directly set mortgage rates, but lower inflation and expectations for future Fed rate cuts can help support the bond market, which is a major driver of mortgage rates.

There is also some encouraging news on the housing front. The Cotality Home Price Index continues to show that home values are holding up relatively well despite higher mortgage rates. That resilience is important for homeowners and buyers who have been waiting for a better opportunity.

So, what does this mean for you?

If you’ve been thinking about buying or refinancing, now is a good time to get prepared. You don’t have to wait for rates to hit the perfect number. Getting pre-qualified now allows you to understand your options, know your purchasing power, and be ready to move when the market gives you the opportunity.

Time to get pre-qualified and ready to buy or refinance your home. http://www.YourApplicationOnline.com