NextFin news, PIERRE, S.D. — South Dakota realtors anticipate a positive impact on the housing market following the Federal Reserve's decision on Monday, September 22, 2025, to reduce its benchmark interest rate by a quarter point, bringing it down to a range of 4.0 to 4.25 percent.
This rate cut, the first since December 2024, has already influenced local mortgage rates, which are now approximately six percent. Larissa Luther, representing the Realtors Association of the Sioux Empire, stated that the lower rates could make home buying more accessible for prospective buyers and motivate current homeowners to list their properties.
According to Luther, increased listings would improve housing inventory and accelerate sales, although she noted that the full effects of the rate cut may take some time to materialize. She emphasized that the rate reduction should foster greater confidence among both buyers and sellers across South Dakota.
The Federal Reserve's decision aims to support economic growth by making borrowing more affordable, which in turn is expected to invigorate the real estate market statewide.
Source: Mitchell Now, September 22, 2025, report by Christal Blue; Dakota News Network, September 19, 2025, report by Paul Bougie.
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