WASHINGTON (AP) -- It is a new low for the housing market.
The American Bankers Association says a record 9 percent of U.S. homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June.
The focus of trouble in the market has shifted from subprime loans granted to borrowers with poor credit to those with solid credit saddled with exotic loans carrying ballooning monthly payments.
The problem is concentrated in a handful of states, notably California and Florida. Real estate booms in the two states were fueled by lending practices now regarded as risky, as well as rampant speculation.
The latest quarterly snapshot of the market breaks records for late payments, homes entering the foreclosure process and for the inventory of loans in foreclosure. The trade group's records go back to 1979.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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