Expectations for president-elect Joe Biden’s fiscal stimulus have driven a week-over-week increase in US mortgage rates, with the 30-year fixed-rate mortgage (FRM) inching up to 2.79% this week.

The 30-year FRM climbed 14 basis points to 2.79% for the week ending January 14, according to the Freddie Mac Primary Mortgage Market Survey. Last year at this time, the rate for the 30-year mortgage was 3.65%.

The 15-year fixed-rate mortgage also rose this week, up slightly from 2.16% to 2.23%. Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) posted a 37- basis- point gain, up to 3.13% from the previous week.

Freddie Mac Chief Economist Sam Khater said that the promise of additional stimulus from the incoming administration has caused Treasury yields and rates to increase.

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