DSCR Rate Spread Tracker
How DSCR loan rates compare to the 10-year Treasury yield — and what it means for investors.
Best DSCR Rate (par)
5.997%
Purchase, 75% LTV, 780 FICO
10-Year Treasury (approx)
4.15%
Benchmark reference rate
Current Spread
185 bps
Tight — favorable pricing
What Is the DSCR Rate Spread?
The spread is the difference between DSCR loan rates and the 10-year Treasury yield. It represents the premium investors demand for non-QM mortgage risk over risk-free government bonds. A tighter spread means DSCR rates are cheap relative to the market. A wider spread means they are expensive.
DSCR loans are funded through the securitization market — lenders bundle DSCR loans into bonds (RMBS) and sell them to institutional investors. When demand for these bonds is high, spreads tighten and DSCR rates drop. When demand is low (during market stress or uncertainty), spreads widen.
The typical DSCR-to-Treasury spread ranges from 175-300 basis points (1.75%-3.00%). Below 200 bps is considered tight (favorable for borrowers). Above 275 bps is considered wide (elevated pricing). The spread has been compressing since 2023 as the non-QM securitization market has matured and more capital has flowed in.
Historical Spread Context
| Period | ~10Y Treasury | Typical DSCR Spread | ~DSCR Rate Range |
|---|---|---|---|
| Current (Apr 2026) | 4.15% | 175-250 bps | 5.90% - 6.65% |
| Jan 2026 | 4.25% | 175-250 bps | 6.00% - 6.75% |
| Jul 2025 | 4.40% | 200-275 bps | 6.40% - 7.15% |
| Jan 2025 | 4.60% | 200-275 bps | 6.60% - 7.35% |
| Jul 2024 | 4.30% | 225-300 bps | 6.55% - 7.30% |
| Jan 2024 | 4.00% | 250-325 bps | 6.50% - 7.25% |
| Jul 2023 | 4.05% | 275-350 bps | 6.80% - 7.55% |
| Jan 2023 | 3.50% | 300-375 bps | 6.50% - 7.25% |
What Drives DSCR Spreads?
Spreads Tighten (Rates Drop) When:
- +Strong investor demand for non-QM RMBS bonds
- +Low DSCR loan delinquency rates
- +More lenders entering the DSCR market
- +Strong rental market fundamentals
- +Fed easing cycle (lower risk-free rates)
Spreads Widen (Rates Rise) When:
- -Market volatility or credit stress
- -Rising DSCR loan delinquencies
- -Reduced RMBS issuance volume
- -Housing market uncertainty
- -Fed tightening or inflation concerns
Take advantage of current spreads
See the exact rate for your scenario. Hundreds of lenders compared instantly.