South Dakota Mortgage and Refinance Rates

Current mortgage rates in South Dakota

As of Sunday, May 04, 2025, current mortgage interest rates in South Dakota are 6.72% for a 30-year fixed mortgage and 5.85% for a 15-year fixed mortgage.

Mortgage rates stubbornly rose despite three consecutive rate cuts by the Federal Reserve last year, starting 2025 above 7 percent. Following a brief drop well below 7 percent in early April, rates are hovering around that 7 percent mark again, following economic uncertainty. Although mortgage rates are tough to predict, experts anticipate they’ll continue to bounce around between the 6 and 7 percent range for most of 2025.

Refinance rates in South Dakota

While mortgage refinance rates have more than doubled since the pandemic, many South Dakota homeowners have much more tappable equity now: the average mortgage-holder gained $5,700 year over year in the third quarter of 2024, according to Cotality. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

National mortgage rates by loan type

South Dakota mortgage rate housing market statistics and trends

While median down payments are declining in South Dakota — down 35 percent year over year as of Feb. 2025 — median home prices are on the rise (over 10 percent) for the same period, as per ATTOM. Increasing home prices, plus today’s higher mortgage rate environment, suggests that housing affordability is continuing to be a challenge for many hopeful South Dakota residents.

If you're looking to buy a home in The Mount Rushmore State, here are some stats to help guide your search:

• Most popular cities: Sioux Falls, Rapid City, Aberdeen, Watertown, Brookings
• Most affordable counties (based on median home value): Corson, Perkins, Potter, Roberts, Walworth
• Median home sales price, Feb. 2025: $305,000
• Median home value, Feb. 2025: $318,750
• Median down payment, Feb. 2025: $26,500
• Homeownership rate, Q4 2024: 70.2%

Sources: ATTOM, U.S. Census Bureau

 Mortgage options in South Dakota

• South Dakota conventional mortgages: Conventional mortgages usually require a credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. You’ll need to put at least 3 percent down, but at that level, you’ll need to pay private mortgage insurance (PMI) as well.
• South Dakota FHA loans: If you have a lower credit score, a loan insured by the Federal Housing Administration (FHA) might be a better option. You can get an FHA loan with a credit score of 580 and a down payment of 3.5 percent.
• South Dakota USDA loans: South Dakota has properties eligible for loans backed by the United States Department of Agriculture (USDA). USDA loans can come with reduced interest rates and don’t require a down payment. However, you’ll need to be below area-specific income requirements.
• South Dakota VA loans: For qualifying active-duty service members, veterans and surviving spouses, a mortgage guaranteed by the Department of Veterans Affairs (VA) is an option. You’ll need to pay a funding fee, but on the flipside, VA loans don't require a down payment or mortgage insurance.

First-time homebuyer programs in South Dakota

If you're a first-time buyer hoping to plant some roots in The Mount Rushmore state, check if you qualify for any of these first-time homebuyer assistance programs:

• The South Dakota Housing Development Authority (SDHDA) mortgage: The SDHDA offers first-time homebuyers a fixed low-interest mortgage. To qualify, you can’t have owned a home in the last three years, and you must meet certain income and purchase price limits.
• Down Payment Assistance: SDHDA’s Fixed Rate Plus loan provides up to 5 percent for down payment or closing costs as a zero-percent second mortgage, due when the first mortgage is paid off or the home is sold.
• Homes Are Possible Assistance: Homes Are Possible Inc. (HAPI) offers a $5,000 interest-free loan for down payment or closing costs, to be repaid when the home is sold or the mortgage is paid off.
• GROW South Dakota Assistance: GROW South Dakota offers a zero-percent deferred loan ranging from $5,000 to $10,500 for down payment or closing costs, due either when the loan matures, or the home is sold or refinanced.

How to find the best mortgage rate in South Dakota for you

To get the best deal on interest rates and loan terms, be sure to shop around with multiple lenders before picking one. You might also find it helpful to read South Dakota lender reviews to get an idea of other people's experiences and satisfaction with a given lender in the state. Here are some steps to take to find the best mortgage rate for you:

Additional South Dakota mortgage resources

• South Dakota loan limits by county: Learn the conforming loan limit for your city or town.
• South Dakota mortgage lenders: Explore loan-offering institutions throughout the state.
• Best Homeowners Insurance in South Dakota: Compare policies from a variety of providers.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.

Read more from Laurie Richards