Why Experts Say Mortgage Rates Should Ease Over the Next Year in Sioux Falls, SD

Author Amy Stockberger | Founder, Amy Stockberger Real Estate| Creator,
Lifetime Home Support™ Academy | Partner, ProInsight – helping agents scale with Relational Tech™ | Ranked the #1 Real Estate Team in South Dakota since 2017 and #33 in the Nation by Real Trends

 

You want mortgage rates to fall – and good news, they’ve already started to. But is it going to last? And how low will they go in Sioux Falls, SD?

Experts project there’s still room for rates to decline over the next year, which could open doors for both buyers and sellers in our local market. For anyone looking at neighborhoods like Harrisburg, Prairie Hills, or Jefferson Heights, understanding these shifts can make all the difference in timing your next move.

Why This Matters in Sioux Falls, SD

For over 50 years, the 30-year fixed mortgage rate has closely followed the 10-year treasury yield. When the treasury yield rises, mortgage rates tend to increase. When it falls, mortgage rates usually decline.

In Sioux Falls, SD, this means more affordability and buying power for homebuyers and stronger demand for sellers. With inventory levels still tight, lower rates could reignite competition across zip codes like 57106 and 57110.

Mortgage Rate Trends to Watch

Tip 1: The Link Between Mortgage Rates and Treasury Yields

The 10-year treasury yield is one of the strongest predictors of mortgage rate movements. With the yield forecasted to decline, buyers in Sioux Falls, SD could see more favorable conditions ahead.

Tip 2: The Spread Is Shrinking

Historically, the gap between the treasury yield and mortgage rates averages about 1.76 percentage points. Over the past few years, uncertainty widened that gap, keeping mortgage rates unusually high. But as economic clarity improves, the spread is narrowing—a positive signal for buyers and sellers.

Tip 3: 2026 Outlook for Rates

If the yield continues to drop and the spread normalizes, mortgage rates could land in the high 5% range by late 2026. That shift would have major implications for buyers waiting on the sidelines and for sellers considering listing.

How Amy Stockberger Real Estate Can Help

At Amy Stockberger Real Estate, we track these shifts daily to help our clients make the best decisions. Through
Lifetime Home Support™, our clients get before, during, and forever support, including:

• Access to 100+Home Support Team Partners for every stage of homeownership.
• VIP perks like free moving trucks, tools, and concierge services.
• Exclusive client events and giveaways that add lasting value.

Ready to Take the Next Step?

Mortgage rate trends can feel overwhelming, but you don’t have to navigate them alone. Whether you’re buying your first home in Sioux Falls, SD, moving up, or selling an investment property, our team is here to guide you.

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