The WSJ is reporting:

The rate of U.S. home mortgages overdue or in foreclosure rose again in the second quarter as housing markets weakened, particularly in California and Florida, and more borrowers defaulted on so-called prime loans.

Among mortgages on one- to four-family homes, 9.16% were at least a month overdue or in the foreclosure process in the second quarter, according to the latest survey by the Mortgage Bankers Association, a trade group. That is up from 6.52% a year earlier and is the highest level since the MBA began such surveys 39 years ago.

foreclosure crisis, generally considered the worst since the Great Depression of the 1930s, began in late 2006 with a surge in defaults on subprime loans, those to people with weak credit records. As falling real-estate prices have left more people owing more than the current value of their homes, defaults have gradually spread to include more prime loans. Among the most troubled prime loans are option adjustable-rate mortgages, which let borrowers start out with very low monthly payments and pose much bigger ones after a few years.

For prime loans, 5.35% of loans were past due or in foreclosure in the latest quarter. For subprime, the rate was about 30%.

In the latest quarter, 2.75% of all loans were in the foreclosure process, up from 1.40% a year earlier.