For much of the past two years, private lenders have benefited from gradually declining borrowing costs and robust investor demand, which has helped fuel strong growth across both bridge and debt-service coverage ratio (DSCR) lending.
That environment has evolved into a new dynamic. Ten-year Treasury yields have risen, mortgage rates have followed and DSCR loan pricing has begun to increase as well. While the changes have been modest, they mark a meaningful departure from the easing rate environment that defined much of 2024 and 2025.
Historically, higher rates have often been viewed as a headwind for real estate lending activity. Yet the current market is demonstrating that demand for private capital remains remarkably durable even as fin...
