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Mortgage rates in South Dakota

Where they currently stand and where they’re predicted to go throughout the year.

According to 2018 data, over half of South Dakota’s population live in rural areas. Its 30-year mortgage rate averages 4.507%. But if you meet the narrow criteria to qualify for a USDA loan — perhaps less narrow for residents of the Mount Rushmore State — the average rate comes in at a more competitive 4.372%.

Compare mortgage lenders and brokers

Compare these lenders and lender marketplaces by the type of home loan you're searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.
Name Product Loan products offered State availability Min. credit score
(NMLS #1121636)
Conventional, Home equity, Refinance
Not available in: AK, HI, MO, NH, NM, NY, SD, WV
No hidden fees, multiple loan terms, and member discounts available.
(NMLS #330511)
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
Online preapproval in minutes and no origination fees with this direct lender.
Axos Bank
(NMLS #524995)
Axos Bank
Conventional, Jumbo, FHA, VA, Home Equity/HELOC, Refinance
Available in all states
Purchase, refinance, and home equity options available with lender fees as low as $0 (restrictions apply).
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
Streamline your mortgage from quote to final payment — all from your computer or phone.
(NMLS #1136)
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
Connect with vetted home loan lenders quickly through this online marketplace.

Compare up to 4 providers

How much do South Dakota rates vary?

Average mortgage rates in South Dakota stretched from 3.844% to 4.671% for 30-year loans in 2018. Several variables, such as loan program, can influence your interest rate. For example, although government-backed loans generally have more borrower and property requirements, they also typically have lower interest rates than their conventional counterparts.

2018 average rates in South Dakota by loan type

Loan type15-year average rate30-year average rate

USDANot available4.372%

Based on data from

To illustrate, say you had a $205,000 30-year conventional mortgage at the 2018 average rate of 4.671%. Your mortgage payment might come out to $1,060 per month, excluding taxes and charges specific to your loan.

On the other hand, if you qualified for a USDA loan at the 2018 average rate of 4.372%, your monthly payment could be about $1,023. A $37 difference per month could amount to a savings of $13,127 over the life of the loan.

Average South Dakota mortgage rates will likely hang around the sub-4% mark in 2020.

Historically, South Dakota seesaws just above and below the national average. The average mortgage rate was 0.12% higher than the rest of the country in 2018 and 0.04% lower in 2017. Housing agencies like Wells Fargo and the National Association of Realtors are calling for 30-year interest rates in the high 3% in 2020. South Dakota mortgage rates likely won’t stray far from the national average.

Compare mortgage rates throughout South Dakota

There are a handful of metropolitan areas in South Dakota, each with its own unique average mortgage rate. Each geographic region also has slightly different home values and loan amounts. If you’re looking to move, check out the average mortgage rate in the neighborhood you’re considering to get a better idea of what you might pay.

Using data from the Home Mortgage Disclosure Act, we figured out the estimated monthly cost of the average 30-year fixed-rate mortgage in three metropolitan areas in South Dakota. Rates and costs do not account for taxes, fees or costs unique to your mortgage.

Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly cost

Rapid City4.592%$205,000$1,050
Sioux City MSA (Union County, SD)4.540%$215,000$1,090
Sioux Falls4.587%$195,000$1,000

Based on data from

How to get the best mortgage rate in South Dakota

Three strategies to help you score the best rate:

  1. Explore loan programs. Lenders assign different interest rates for their loan programs. Find out what loan products you qualify for to compare interest rates.
  2. Polish your borrowing profile. Pay off as much debt as possible to up your credit score before applying for a mortgage. Lenders give the best mortgage rates to borrowers with lower debt-to-income ratios and higher credit scores.
  3. Weigh the closing costs. You can expect closing costs in South Dakota to run you about 1.47% to 2.93% of the final purchase price. Consider these charges against your interest rate to calculate the total cost of your home loan.

Historical mortgage interest rates in South Dakota

Bottom line

As housing agencies nationwide predict mortgage rates to hover below 4%, you can expect South Dakota rates to perform similarly. But ultimately, lenders set their own rates, so be sure to compare mortgages and lenders to get the best rate.

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