PROVIDENCE – The share of mortgages in delinquency of 30 days or more in Rhode Island was 4.4% in May, a decline from 6.9% one year prior and level with one month prior, according to CoreLogic Tuesday.
The national delinquency rate was 4.7% in May, a decline from 7.3% in May 2020.
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Rhode Island had the second-highest mortgage delinquency rate in New England in May.
- Connecticut: 5.8%, a decline from 9.3% one year prior
- Maine: 4.3%, a decline from 6.7% one year prior
- Massachusetts: 4%, a decline from 5.6% one year prior
- Vermont: 3.4%, a decline from 5.8% one year prior
- New Hampshire: 3.4%, a decline from 5.3% one year prior
“The pandemic has created many challenges but, in the case of delinquencies, the impacts have been relatively muted thanks to numerous government support programs and the sharp snapback in economic activity over the past several quarters,” said Frank Martell, president and CEO of CoreLogic. “Looking forward, we expect a robust economy and near-zero interest rates to hold delinquency levels at reasonable levels.”
CoreLogic also said that increasing home prices nationally will lower the risk of foreclosure for many homeowners.
“The rise in home prices has built a substantial home-equity cushion for homeowners with a mortgage, reducing the risk of a foreclosure,” said Frank Nothaft, chief economist at CoreLogic. “The CoreLogic Home Price Index recorded an annual increase of 17% in June. This price rise builds home equity. For most borrowers in forbearance, the equity gain means they’ll still have some remaining – even if missed payments are added to their loan balance.”
The share of mortgaged homes in serious delinquency in Rhode Island, or 90 days or more overdue, was 2.9% in May, a rise from 1.7% one year prior. The national serious delinquency rate also rose in that time, from 1.5% one year prior to 3.2%.
The state foreclosure rate was 0.3% at the time, level with the national average and a decline from 0.4% one year prior.
The full report may be viewed online.
