SIOUX FALLS - South Dakota and North Dakota have the lowest rate of subprime home loans in the nation, according to the Mortgage Bankers Association's National Delinquency Survey.

"Back during the big housing boom in 2004 and 2005, South Dakota was one of the few states that did not go overboard by making outrageous loans, and so avoided getting overheated like many other states," said Robert Denk, senior analyst and forecaster for the national group.

Because of more prudent lending practices, South Dakota didn't see the run-up in home prices and home building that a big portion of the country did, Denk said.

Based on that restraint, South Dakota's housing market is less stressed and recovery should come earlier in this state than in other areas, he added.