PROVIDENCE – Of all mortgages in Rhode Island, 6.9% were in delinquency 30 days or more in May, an increase of 2.7 percentage points year over year, according to CoreLogic Tuesday.
Nationally, the mortgage delinquency rate in May was 7.3%, a rise from 3.6% one year prior.
“The national unemployment rate soared from a 50-year low in February 2020, to an 80-year high in April,” said Frank Nothaft, chief economist at CoreLogic. “With the sudden loss of income, many homeowners are struggling to stay on top of their mortgage loans, resulting in a jump in nonpayment.”
Other New England mortgage delinquency rates in May:
- New Hampshire: 5.3%, an increase from 2.9% one year prior
- Vermont: 5.8%, an increase from 3% in May 2019
- Massachusetts: 6.1%, a rise from 3.3% one year prior
- Maine: 6.7%, a rise from 4.4% in May 2019
- Connecticut: 9.3%, an increase from 4.5% one year prior
Rhode Island mortgages in serious delinquency, or 90 days or more past due, accounted for 1.7% of all mortgages in the state. The national serious delinquency rate in May was 1.5%. Rhode Island homes in foreclosure accounted for 0.6% of all mortgaged homes, higher than the national rate of 0.3%.
“Government and industry relief programs have helped to cushion the initial financial blow of the pandemic for millions of U.S. homeowners,” said Frank Martell, president and CEO of CoreLogic. “COVID-19 and the resulting pressures continue to influence the economic activity of many households. Barring additional intervention from the federal and state governments, we are likely to see meaningful spikes in delinquencies over the short to medium term.”
CoreLogic noted that mortgage delinquency increased in all 50 states year over year in May.
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