U.S. DSCR Market Brief for Borrowers: November 2026

The 10-year Treasury yield fell to 4.94% on October 30. Freddie Mac’s weekly average changed slightly, while the Federal Reserve left its target range unchanged at its October meeting.

Long-term pricing eased while the Fed held steady

Long-term pricing had a more favorable reference point at month-end, but not every borrowing cost moved with it. On October 30, the 10-year Treasury yield was 4.94%; on September 30, 2026, it was 5.29%. The Federal Reserve left its target range unchanged at its October 27-28 meeting, with a 10-2 vote. The range in effect since September 17 was 3.75% to 4.00%.

SOFR, the Secured Overnight Financing Rate, is the overnight benchmark many floating short-term loans are priced over. It was 3.95% on October 30, up 0.05 points from September 30, 2026. That is a small move in the reference rate, but a floating borrower should still confirm how the loan’s coupon is set and when it resets.

Freddie Mac’s 30-year average for conventional home-purchase loans was 7.24% on October 29, down 0.04 points from October 1, 2026; it is not a DSCR rate. Inflation remains part of the rate picture: consumer prices rose 3.7% in the 12 months to September, while prices excluding food and energy rose 2.6% over that period. Price the actual loan and keep the exit assumptions separate from broad market averages.

"A month earlier" is September 30 for SOFR and the 10-year, and October 1 for the Freddie Mac survey. A year ago, the 30-year average was 6.17%.

Monthly averages from FRED.

The lower long-term benchmark barely changes rental sizing

The long-term reference rate fell, but actual rental-loan pricing and payments depend on the loan terms. DSCR means rent divided by the full monthly payment: principal, interest, property taxes, insurance and any HOA dues. A lender sizes against the rent for that property, commonly the signed lease or the appraiser’s market-rent estimate, and many lenders use the lower of the two. A vacant property is sized using the appraiser’s estimate.

In the example, monthly rent is $2,400, with monthly property tax of $300 and insurance of $200. Using an assumed note rate of 7.50% on October 1 and 7.46% on October 29, the maximum loan at 1.20x coverage stays $215K. At 1.00x coverage, the example rises from $272K to $273K. The illustration is an example, not a quote; it shows how a small rate move can leave tighter coverage sizing essentially unchanged.

If a purchase is in progress, refresh the payment using the actual taxes, insurance, rent support and any HOA dues before setting the final loan amount. Sphinx Capital’s DSCR program has a loan amount of $100,000 - $20,000,000, maximum loan-to-value of Up to 80%, rates From 6.25%, and minimum DSCR As low as 1.00. Use the DSCR calculator to check the rent against the payment, and review the DSCR program before choosing a structure; the sizing table below shows the example’s full results.

Assumptions: $2,400 monthly rent, $300 monthly property tax, $200 monthly insurance, no HOA, 30-year fully amortizing loan; an assumed 7.50% note rate a month ago and 7.46% now, a move equal to the 0.04 points change in Freddie Mac's 30-year average over the same weeks. DSCR pricing does not track the survey point for point; treat the rate move as an assumption.

Resale time matters more than a fixed loan’s rate

A floating bridge coupon can change with SOFR, while a fixed-rate flip or construction loan carries its rate through the project and feels resale conditions through time on market and carry. SOFR rose 0.05 points between September 30 and October 30. The bridge illustration does not provide a usable spread over SOFR, so it cannot show the coupon change for a specific bridge loan. Sphinx Capital’s bridge pricing is 7.99% – 11.99% (Varies by scenario), with a typical term of 12-36 months.

For a fixed-rate project, the more immediate question is how long the property may take to sell. The national median time on market was 61 days in September, and 20.8% of active listings cut their asking price that month. In a flip carry example, interest on a $300,000 loan costs $2,248 each month, before taxes, insurance and utilities. That is a reminder to budget for time as well as the renovation itself.

Florida resale times were longer than the national median in each metro listed in the table below. September medians ranged from 66 days in Jacksonville to 91 days in Cape Coral-Fort Myers; Tampa-St. Petersburg-Clearwater was at 76 days, Orlando-Kissimmee-Sanford at 77 days, Miami-Fort Lauderdale-West Palm Beach at 85 days and North Port-Bradenton-Sarasota at 88 days. Sphinx Capital’s fix-and-flip program has a rate From 8.99%, a Fixed rate, interest only, and a term of 12-24 months. Closing is Within 10 days (On qualifying submissions). Check the likely sale window and carry with the fix-and-flip calculator, and compare the project with the fix-and-flip program before committing.

Recheck the rental refinance before relying on the exit

A bridge or flip-to-hold project often depends on a DSCR refinance, so the lower long-term reference rate is helpful only if the finished property’s rent supports the takeout payment. Re-run the expected payment using current taxes, insurance, HOA dues and a defensible rent for the property. The national median asking price was $419,250 in September, but a national asking-price figure cannot establish what one completed rental will be worth or what its rent will support.

A recent purchase may also face a documented-rent requirement: many DSCR lenders want a period of documented rent before refinancing at the property’s new value. Build that time into the plan, and do not treat the expected refinance amount as certain before the property, rent and borrower are reviewed. If the property will be vacant or newly renovated, ask how the rent estimate will be established and what documents will support it.

The exit is where the fixed rate’s risk can show up: the sale price may be different from the plan, or the finished property may qualify for a smaller long-term loan than expected. Review the steps in Bridge to DSCR Refinance, then update the takeout amount and timing before you extend the short-term loan or spend against projected proceeds.

Lenders review rent, costs, reserves and the exit plan

Many lenders look for a file that supports the rent, the payment and the plan after closing; prepare the evidence before asking for final sizing.

• Coverage with room. Show how rent compares with the full payment, including taxes, insurance and any HOA dues. A deal close to the minimum leaves little room for vacancy or repairs.
• Current tax and insurance evidence. Use current bills or support for the property being financed. These costs affect the payment and can change the amount rent supports.
• Signed leases. Provide the signed lease when the property is occupied, and be ready to support market rent if it is vacant. A citywide figure is only a starting point for a specific house.
• Reserves after closing. Keep cash available for the months when interest, taxes and insurance still need to be paid. Set aside room for repairs and vacancy as well.
• A written exit. State whether the plan is sale or refinance, and show how timing and carry fit the plan. For a refinance, account for any documented-rent period a lender may require.
• Entity documents. Organize the borrower’s formation, ownership and signing documents so the lender can review who is borrowing and who can act for the entity.

Sphinx Capital’s DSCR program has fixed, interest-only, or adjustable options. Before submitting, match the file to the property and the exit you actually intend to use.

Use the next Fed dates to plan, not to assume a rate move

The next Federal Open Market Committee meeting is December 8-9, with new economic projections, followed by January 26-27. Those dates are useful points to revisit financing assumptions, but they do not establish what rates will do. The Federal Reserve’s October decision left the target range unchanged, while long-term and overnight reference rates moved in different directions during the month.

For a purchase, update the payment and rent support before finalizing the amount. For a bridge or flip, keep carry and a longer sale period in view; for a rental refinance, check that the lease evidence, taxes, insurance and likely takeout amount still work together. Use the calendar as a reason to review the plan, not as a reason to delay a decision that already fits your numbers.

If you have a project in motion, apply with its current budget, rent or exit plan.

Sources

• FOMC statement, October 28, 2026 — Board of Governors of the Federal Reserve System
• FOMC meeting calendars, 2026 and 2027 — Board of Governors of the Federal Reserve System
• 30-Year Fixed Rate Mortgage Average (MORTGAGE30US) — Freddie Mac Primary Mortgage Market Survey, via FRED (Federal Reserve Bank of St. Louis)
• 15-Year Fixed Rate Mortgage Average (MORTGAGE15US) — Freddie Mac Primary Mortgage Market Survey, via FRED (Federal Reserve Bank of St. Louis)
• 10-Year Treasury Constant Maturity Rate (DGS10) — Board of Governors of the Federal Reserve System, via FRED (Federal Reserve Bank of St. Louis)
• Secured Overnight Financing Rate (SOFR) — Federal Reserve Bank of New York, via FRED (Federal Reserve Bank of St. Louis)
• Federal Funds Target Range, Upper Limit (DFEDTARU) — Board of Governors of the Federal Reserve System, via FRED (Federal Reserve Bank of St. Louis)
• Federal Funds Target Range, Lower Limit (DFEDTARL) — Board of Governors of the Federal Reserve System, via FRED (Federal Reserve Bank of St. Louis)
• Consumer Price Index for All Urban Consumers, not seasonally adjusted (CPIAUCNS) — U.S. Bureau of Labor Statistics, via FRED (Federal Reserve Bank of St. Louis)
• CPI less food and energy, not seasonally adjusted (CPILFENS) — U.S. Bureau of Labor Statistics, via FRED (Federal Reserve Bank of St. Louis)
• Single-family housing starts, seasonally adjusted annual rate (HOUST1F) — U.S. Census Bureau and HUD, via FRED (Federal Reserve Bank of St. Louis)
• Housing inventory core metrics, national and metro, September 2026 — Realtor.com Economic Research
• DSCR loan program term sheet — Sphinx Capital
• Bridge loan program term sheet — Sphinx Capital
• Fix and flip loan program term sheet — Sphinx Capital
• Construction loan program term sheet — Sphinx Capital

Illustrations (loan sizing, bridge and flip carry) are computed by Sphinx Capital from the figures above and the published term sheets; they are examples, not quotes. Figures retrieved 2026-11-03.