April 2026 Private Lending Market Update
Rates & Points, Origination Volumes & More
We partnered with the National Private Lenders Association (NPLA) to co-produce a monthly market update for April 2026. To see the full report click here.
Interest Rate Trends
RTL rates remain in the same approximate range of 9.5–11%. DSCR rates remain steady as well, with a median of 7% that has held through 2026.
Interest Rate Distribution
RTL rates have a larger dispersion while DSCR rates are concentrated between 6–8%, with 90% of DSCR loans falling in that 2-point range.
Points Trends
RTL saw a modest decrease in points, while DSCR saw a larger increase of ~0.4%. Both fall within near-term ranges.
Rate vs Points
The scatter makes the structural difference between the two products plain. RTL deals form a visible cluster around 10-11% and 1-2 points, but the spread is wide — some lenders offer lower rates with higher points, others go the reverse, and a long tail of small short-duration loans sits at 12%+ with 3-5 points. DSCR deals cluster tightly around 7-8% and 0.5-2 points with very little dispersion.
Q1 2026 Market Volume Update
Stepping back from deal-level pricing, the broader market posted its strongest Q1 on record. Private lender originations totaled $29.7B, up +4.0% YoY year over year. The headline number masks a sharp divergence underneath: RTL surged +13.0% YoY while DSCR contracted -8.8% YoY. Capital is rotating into transitional and value-add deals as buy-and-hold investors stay on the sidelines waiting for cap rates to widen.
DSCR came in at $10.7B, off -8.8% YoY from the Q1 2025 high-water mark. Q1 2026 still tracks well above the 2023-2024 trough and is pacing for another year of near $50B in DSCR origination volume.
Q1 2026 is the strongest Q1 for private lending activity yet. Combined DSCR & RTL activity was just under $30B, up ~4.2% YoY.
Geographies With Most Changing Volumes
The Midwest and North Carolina had the markets that grew the most YoY in Q1 for private lending activity, while 3 of the 10 markets that showed the largest decreases in YoY activity were in Florida.
Pre-Foreclosure Rates
Nationwide, 1.10% of outstanding loans originated by private lenders are actively in pre-foreclosure. Florida is leading the charge, with 7 of the top 10 markets with the highest rate of pre-foreclosure activity.
Many of the largest private lending markets are strong with relatively light pre-foreclosure activity. Every major market has a <2.5% pre-foreclosure rate, and markets with higher rates tend to be geographically concentrated.
To see the full report click here.