DSCR Rate History
Track how DSCR loan rates have moved over time. This chart shows the lowest available rates without points for purchase, rate/term refinance, and cash-out refinance DSCR loans - updated daily.
Understanding DSCR Rate Trends
DSCR (Debt Service Coverage Ratio) loan rates fluctuate based on market conditions, investor appetite, and broader economic factors. Unlike conventional mortgage rates that closely track the 10-year Treasury yield, DSCR rates are influenced by the securitization market and non-QM investor demand.
Key factors that drive DSCR rate movements include:
- Securitization spreads - When investor demand for non-QM mortgage-backed securities is high, spreads tighten and rates drop.
- Federal Reserve policy - Changes in the federal funds rate and quantitative tightening affect the cost of capital for DSCR lenders.
- Rental market conditions - Strong rental demand supports DSCR loan performance, which can lead to better pricing.
- Competition among lenders - As more lenders enter the DSCR space, competitive pressure drives rates lower.
Cash-out refinance rates typically run 25-75 basis points higher than purchase rates due to increased risk. Rate/term refinance pricing is usually similar to purchase pricing since the risk profile is comparable.
This rate history tracks our benchmark scenario daily. For your specific scenario with different LTV, FICO, or DSCR ratios, use our pricing tool to get real-time quotes.