The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans to borrowers with shaky credit were past due or in foreclosure.
California, Nevada, Arizona and Florida accounted for 46 percent of new foreclosures in the country.
Meanwhile, new U.S. home sales were almost flat last month, indicating that the housing market's recovery will likely be a slow and gradual process.
The Commerce Department said Thursday that sales rose 0.3 percent in April to a seasonally adjusted annual rate of 352,000. But the increase came from a downwardly revised rate of 351,000 in March.
April's results missed the expectations of economists surveyed by Thomson Reuters, who expected a sales pace of 360,000 units.