PROVIDENCE – The share of mortgages in Rhode Island that were delinquent 30 days or more in June was 6.6%, an increase from 4.7% one year prior.
Nationally, the mortgage delinquency rate was 7.1% in June, an increase from 4% one year before.
Rhode Island had the second-highest rate of mortgage delinquency in New England in June.
Other New England June mortgage delinquency rates of 30 days or more:
- Connecticut: 9.1%, an increase from 5.1% one year prior
- Maine: 6.5%, an increase of 1.5 percentage points year over year
- Massachusetts: 5.9%, an increase from 3.8% in June 2019
- Vermont: 5.6%, an increase from 4.1% one year prior
- New Hampshire: 5.1%, an increase from 3.7% one year prior
The Rhode Island serious delinquency rate, or the share of mortgages in delinquency of 90 days or more, was 3.3% in June, an increase from 1.7% in June 2019. The national serious delinquency rate in June was 3.4%, a 2.1 percentage point rise year over year. The serious delinquency rate in the United States in June was the highest it has been since February 2015.
“Three months into the pandemic-induced recession, the 90-day delinquency rate has spiked to the highest rate in more than 21 years,” said Frank Nothaft, chief economist at CoreLogic. “Between May and June, the 90-day delinquency rate quadrupled, jumping from 0.5% to 2.3%, following a similar leap in the 60-day rate between April and May.”
The Ocean State’s share of mortgages in foreclosure was 0.4%, a decline from 0.6% one year prior. The national foreclosure rate declined slightly year over year from 0.4% to 0.3%.
“Forbearance has been an important tool to help many homeowners through financial stress due to the pandemic,” said Frank Martell, president and CEO of CoreLogic. “While federal and state governments work toward additional economic support, we expect serious delinquencies will continue to rise – particularly among lower-income households, small- business owners and employees within sectors [such as] tourism that have been hard hit by the pandemic.”
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