The quick read: The Treasury yields that DSCR loan quotes are priced from fell by more than a third of a percentage point in October 2026: the 5-year dropped 0.38 points, from 5.09% on September 30 to 4.71% on October 30, and the 10-year dropped 0.35 points, from 5.29% to 4.94%, according to FRED and the U.S. Treasury's daily par yield curve. The Fed did not drive it. On October 28 the Federal Open Market Committee held the federal funds target range at 3-3/4 to 4 percent, and both yields barely moved across the meeting. What fell for a DSCR borrower is the index under a fixed or hybrid quote. The lender's spread, points and prepayment terms are set by each lender and did not move with it, which is why an unlocked quote from early October deserves a requote and a competing bid.
How far did the Treasury yields behind DSCR quotes move in October 2026?
The 5-year and 10-year Treasury yields, the two benchmarks fixed-rate and hybrid DSCR quotes most often key off, both ended October 2026 more than a third of a point lower than they started. Most of the drop came in the second half of the month, before the Fed met.
Each level below is read from its FRED series page (DGS5 and DGS10) or, for October 30, from Treasury's daily par yield curve, and is printed with its observation date:
5-year Treasury, September 30, 2026 (FRED DGS5): 5.09%
5-year Treasury, October 30, 2026 (U.S. Treasury daily par yield curve): 4.71%
10-year Treasury, September 30, 2026 (FRED DGS10): 5.29%
10-year Treasury, October 30, 2026 (U.S. Treasury daily par yield curve): 4.94%
October high for the 10-year, October 5, 2026 (FRED DGS10): 5.31%
Largest one-day drop, October 22, 2026 (FRED): 0.17 points on both the 5-year and the 10-year
October 2026 Treasury tape for DSCR quotes (FRED DGS5 and DGS10; October 30 from the U.S. Treasury daily par yield curve):
| Series | 2026-09-30 | 2026-10-27 | 2026-10-29 | 2026-10-30 | October change | Which DSCR quotes key off it |
|---|---|---|---|---|---|---|
| Series 5-year Treasury (DGS5) | 2026-09-30 5.09% | 2026-10-27 4.82% | 2026-10-29 4.78% | 2026-10-30 4.71% | October change Down 0.38 points | Which DSCR quotes key off it Hybrid quotes with a 5-year fixed period and shorter fixed terms |
| Series 10-year Treasury (DGS10) | 2026-09-30 5.29% | 2026-10-27 4.99% | 2026-10-29 4.98% | 2026-10-30 4.94% | October change Down 0.35 points | Which DSCR quotes key off it 30-year fixed quotes and longer fixed-period hybrids |
FRED's series pages, updated October 30, end at the October 29 observation, so the October 30 column comes from Treasury's own table. The two sources print the same values for September 30 and for October 27 through 29. The changes are our arithmetic on those dated levels. For today's benchmarks and the September backdrop, see our DSCR loan rates page, which stays current; this page is the dated October record.
What did the October 28 Fed decision do to DSCR quotes?
The October 28 Federal Open Market Committee decision left the federal funds target range unchanged at 3-3/4 to 4 percent, so the policy rate did not move at all. A DSCR quote priced off the 5-year or 10-year Treasury moved only as much as those yields did across the meeting, which was very little.
The statement's first sentence, as published by the Federal Reserve: "The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate." The vote was 10 to 2. Per the statement, Lisa D. Cook and Beth M. Hammack voted against the action because they preferred to raise the range by 1/4 percentage point.
Federal funds target range after October 28, 2026 (Federal Reserve): 3-3/4 to 4 percent
FOMC vote, October 28, 2026 (Federal Reserve): 10 to 2
5-year Treasury, October 27 to October 29, 2026 (FRED DGS5): 4.82% to 4.78%, down 0.04 points
10-year Treasury, October 27 to October 29, 2026 (FRED DGS10): 4.99% to 4.98%, down 0.01 points
On decision day itself, per FRED, the 5-year closed at 4.85% and the 10-year at 5.05%, both a few hundredths above the prior day, before giving that back on October 29. Across the meeting, the index under a DSCR quote was close to flat. The October Fed decision explainer covers what the hold meant for bridge, construction, agency and SBA pricing; this page stays on DSCR.
The curve, not the Fed, set October's DSCR index
October's index move for DSCR borrowers came from the Treasury market rather than the Federal Reserve, because the 5-year and 10-year yields price expectations for policy, inflation and growth over years, not one meeting. The biggest single-day drop, on October 22, came six days before the decision.
The month had two halves. Per FRED, the 10-year rose from 5.29% at the end of September to its October high of 5.31% on October 5, and the 5-year touched 5.06% on October 2 and October 5. Both drifted lower through mid-month. On October 22 each fell 0.17 points in a single session, the 10-year from 5.13% to 4.96% and the 5-year from 4.95% to 4.78%, and neither recovered that ground before month-end.
The FRED data show when the move happened, not why, and we have not tied it to a single event. The Fed's own statement read the economy as strong, saying "Economic activity is expanding at a strong pace" and "Inflation remains elevated," and it still held. That is the practical lesson for a DSCR borrower: watch the 5-year and 10-year, not the meeting calendar.
Which parts of a DSCR quote were repriced in October, and which are lender-set?
Only one part of a DSCR quote tracks the Treasury market directly, the index, while the lender's spread, the points or rate buydown, and the prepayment structure are set by each lender and change only when that lender reprices its rate sheet or you negotiate. October moved the first and said nothing about the rest.
No public series tracks DSCR spreads, points or prepayment terms, so the table separates what October's data can show from what you have to ask for. Each lender sets the right-hand rows on its own schedule.
Components of a DSCR quote and what October 2026 moved (index data from FRED and Treasury):
| Quote component | Who sets it | Did October's data move it? | What to ask the lender |
|---|---|---|---|
| Quote component Index (5-year or 10-year Treasury) | Who sets it The bond market | Did October's data move it? Yes, down 0.38 and 0.35 points | What to ask the lender Which index, and on what date the quote was priced |
| Quote component Spread or margin over the index | Who sets it Each lender | Did October's data move it? Not observable in public data | What to ask the lender Whether the spread was held or repriced with the new sheet |
| Quote component Points or rate buydown | Who sets it The lender and the borrower | Did October's data move it? No | What to ask the lender What each point buys in rate, in writing |
| Quote component Prepayment penalty | Who sets it Each lender | Did October's data move it? No | What to ask the lender The schedule, and the price of a shorter one |
| Quote component Minimum DSCR and leverage | Who sets it Each lender's credit policy | Did October's data move it? No | What to ask the lender The minimum ratio and the leverage allowed at it |
| Quote component Hybrid reset terms | Who sets it Each lender | Did October's data move it? No | What to ask the lender The index after the fixed period, the margin and the caps |
The prepayment line matters as much as the rate when yields are falling. A borrower who expects to refinance into a lower index later pays for that option through the prepayment penalty, so a quote with a slightly higher rate and a shorter penalty can be the cheaper loan.
How much does a third of a point change a DSCR loan?
On an illustrative $1,000,000 interest-only DSCR balance, a note rate 0.35 points lower cuts annual interest by $3,500, about $292 a month, which lifts the coverage ratio on the same rent. It only reaches you if the lender passes the index move through to the quote.
Illustrative example, our arithmetic and not a quote: suppose a rental's monthly payment, with taxes, insurance and dues, totals $8,000 against $10,000 of monthly rent. Coverage is 1.25. Take the $292 out of that payment and coverage rises to about 1.30. On a deal that was sizing right at a lender's minimum ratio, that gap can be the difference between full proceeds and a smaller loan with more cash at closing.
An amortizing loan moves by a similar amount per month, because the payment change at these balances is driven mostly by the interest portion. Run your own rent, taxes and loan amount through the DSCR calculator at the quoted rate and at a rate 0.35 points lower to see what October did to your file.
Is it worth re-shopping a DSCR loan quoted before October?
It is usually worth re-shopping an unlocked DSCR quote issued before or early in October, because the 5-year and 10-year Treasury indexes both fell more than a third of a point while lender-set spreads, points and prepayment terms are whatever each lender chose. A fresh comparison shows which lenders passed the move through.
There are two routes to that comparison, and the brokerage route comes first because it puts several lenders against one file.
- Brokerage route. YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Its software compares a DSCR file against 20,000+ loan programs and typically surfaces 5–8 matches; its brokers then structure the request, negotiate spread, points and prepayment terms on your side, and carry the deal toward closing. It is a 5-minute submit, with a median first offer in under an hour, from an institutional lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
- Direct route. Ask the lender that issued your quote to reprice it at the current index. You get one rate sheet, and the spread, points and prepayment schedule stay that lender's call.
Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Submit your DSCR deal for a fresh lender comparison
A checklist for DSCR quotes issued in October 2026
A DSCR quote issued in October 2026 should be checked first against the date its index was priced, because the 10-year Treasury ranged from 5.31% on October 5 to 4.94% on October 30, per FRED and Treasury, and a first-week quote carries a higher index than month-end. Then check every lender-set term.
- Find the index date. Ask which Treasury the quote used and the exact day it was priced.
- Compare the index then and now. Use the dated table above; a quote priced near October 5 sits on the month's highest 10-year reading.
- Ask about the spread. Confirm in writing whether the spread or margin was held or repriced when the lender updated its sheet.
- Price the points. Get the rate with and without points so you can see what each point buys.
- Read the prepayment schedule. Ask for the length, the steps and the cost of a shorter option before you compare rates.
- Re-run coverage. Recompute DSCR at the requoted rate; a lower payment can lift proceeds if coverage was the binding limit.
- Decide on a lock. An unlocked quote floats with the index in both directions, so set the lock terms once the numbers work.
The bottom line
October 2026 was a Treasury-market month for DSCR borrowers, not a Fed month. The 5-year fell 0.38 points and the 10-year 0.35 points from September 30 to October 30 while the federal funds target range held at 3-3/4 to 4 percent. That repriced the index under fixed and hybrid quotes and nothing else. Spreads, points and prepayment terms are still each lender's choice, so an unlocked quote from early October is worth a requote and a competing bid.