South Dakota Mortgage and Refinance Rates for September 2026

As of Monday, September 28, 2026, current mortgage interest rates in South Dakota are 6.98% for a 30-year fixed mortgage and 6.40% for a 15-year fixed mortgage.

Following three consecutive rate cuts by the Federal Reserve last year, mortgage rates drifted downward a bit, and ended the year with an average of 6.66%. Rates were continuing to drop — hovering around the 6% mark — until the conflict in Iran began in February. Now rates are around 6.40%. Experts anticipate they’ll continue to bounce around between the 6 and 7% range for most of 2026.

While mortgage refinance rates have more than doubled since the pandemic, home equity remains solid (though it is cooling) according to ATTOM, a provider of property and real estate data. South Dakota’s share of equity-rich homes actually increased in the first quarter of 2026 (compared to the last quarter of 2025), one of only three states that saw a year-over-year increase in this metric. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

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:

• South Dakota Housing First-Time Homebuyer Program: South Dakota Housing offers a first-time homebuyers program with several different loan types, including a fixed-rate 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: South Dakota Housing Development Authority’s Fixed Rate Plus loan provides up to 5% 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.

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: