PROVIDENCE – The share of mortgages in delinquency of 30 days or more in Rhode Island was 3.8% in August, a decline from 6.2% a year ago and 4% in July, according to CoreLogic Tuesday.
The national delinquency rate in August was 4%, a decline from 6.6% in August 2020.
“The decline in the overall delinquency rate to its lowest since the onset of the pandemic is good news, but it masks the serious financial challenges that some of the borrower population has experienced,” said Frank Nothaft, chief economist at CoreLogic. “In the months prior to the pandemic, only one-in-five delinquent loans had missed six or more payments. This August, one-in-two borrowers with missed payments were behind six-or-more monthly installments, even though the overall delinquency rate had declined to the lowest level since March 2020.”
Rhode Island had the second-highest mortgage delinquency rate in New England in August, second only to Connecticut:
- Connecticut: 5%, a decline from 8.3% one year prior.
- Maine: 3.7%, a decline from 6.2% one year prior
- Massachusetts: 3.4%, a decline from 5.6% one year prior
- Vermont: 2.9%, a decline from 5.3% one year prior.
- New Hampshire: 2.8%, a decline from 4.7% one year prior
The serious delinquency rate, or the share of mortgages past due by 90 days or more, was 2.4% in August, a decline from 4% one year prior. The foreclosure rate at that time was 0.3%, a slight decline from 0.4% in August 2020.
“The unprecedented fiscal and monetary stimuli that have been implemented to combat the pandemic are pushing housing prices and home equity to record levels,” said Frank Martell, CEO and president of CoreLogic. “This phenomenon is driving down delinquencies and fueling a boom in cash-out refinancing transactions.”
The full report may be viewed online.
