Mortgage rates in South Dakota
Average 30-year fixed 6.49% · Updated July 9, 2026 · Freddie Mac (FRED)
South Dakota has no state income tax and steady, affordable pricing. Below is what buying at South Dakota's median price looks like at today's national average rate, plus the local property tax and assistance that actually change your payment.
What a mortgage costs in South Dakota
The interest rate on a South Dakota mortgage is the same 6.49% national average a lender would quote anywhere — rates are set by the bond market, not by your state. On South Dakota's median $383,850 home with 20% down, the loan works out to $307,080, or about $1,939 a month in principal and interest.
What makes South Dakota different is the cost around the loan. Its 1.14% effective property-tax rate adds roughly $365 a month, and homeowners insurance about $144 more — bringing the all-in estimate to $2,448. Those local costs, not the interest rate, are what set South Dakota apart. Your own price and down payment will move the number — work backward from your income with the price-you-can-afford calculator.
Getting approved in South Dakota
Federal HMDA lending records show South Dakota lenders originated 17,111 home loans in 2025 and denied 3,303 applications — an approval rate near 83.8% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our state-by-state approval data, and how South Dakota ranks for lender complaint report (432 on record).
Shopping for a loan? See the most active mortgage lenders in South Dakota, ranked by federal HMDA volume.
Down-payment help in South Dakota
You rarely need 20% down. SDHDA — South Dakota's housing finance agency — runs the state's main assistance program: The SDHDA Down Payment Assistance program adds a fixed-rate second loan. Eligibility usually turns on income limits and a homebuyer-education course. Check current terms at SDHDA, see how a smaller down payment changes your number with the down-payment size calculator, or compare nationwide assistance programs.
South Dakota mortgage FAQ
What is the current mortgage rate in South Dakota?
As of July 9, 2026, the U.S. average 30-year fixed rate is 6.49%. The note rate itself is set nationally, not by state — a lender prices your South Dakota loan the same way it would anywhere, based on your credit, down payment and loan type.
What changes locally is everything around the rate: South Dakota's ~1.14% effective property tax, insurance costs, and which assistance programs apply.
What is the monthly payment on a typical South Dakota home?
On South Dakota's median home price of about $383,850 with 20% down at today's 6.49% average 30-year rate, expect roughly $2,448/month — that's $1,939 principal and interest plus about $365 property tax and $144 insurance. Adjust the numbers for your exact price and down payment in our calculators.
How hard is it to get approved for a mortgage in South Dakota?
In 2025, South Dakota lenders originated 17,111 home loans and denied 3,303 applications — an approval rate of about 83.8% among decisioned applications, versus 76.6% nationally, according to federal HMDA data. See how every state ranks in our mortgage approval report.
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.