Mortgage rates inched higher Friday in light trading. Mortgage-backed securities (MBS) markets will close today at 2:00 PM et. and remain closed until Tuesday in observance of Martin Luther King Jr. Day. In economic news, the Consumer Price Index fell 0.7% in December. The closely watched “core” rate, excluding food and energy costs, was unchanged. Industrial Production fell 2.0% last month, more than forecast. Consumer Sentiment rose unexpectedly. Stocks moved modestly higher. No major economic data is scheduled for release next week. Rates will continue to be affected by mortgage industry processing capacity and flight to quality concerns among traders of stocks, Treasurys, and MBS’s. Consumer rates remain artificially high relative to MBS yields due to current refinance volume.