Mortgage rates inched lower Friday following yesterday’s FOMC meeting. The Fed announced it will implement “QE3” by purchasing up to $40 billion of mortgage-backed securities (MBS) monthly until labor markets improve. The Fed also indicated it expects to maintain extremely low short-term rates until at least 2015. The announcement produced a strong rally in MBS markets Thursday afternoon, although some of those gains have been given back this morning. In economic news, the August Consumer Price Index (CPI) rose 0.6%, in line with expectations. Core CPI, which excludes volatile food and energy components, increased 0.1%, a bit less than expected. Retail Sales jumped 0.9%, slightly better than forecast, while Industrial Production fell 1.2%. Consumer Sentiment reached its highest level in four months at 79.2, beating expectations. Stocks moved modestly higher. No other key data will be released today.