"The default rate on subprime mortgage loans hit a record 13.44% in June after rising 100 basis points from that of May, and the foreclosure rate jumped to 5.44%, which also topped the previous record set back in August 1997, according to a Friedman Billings Ramsey report. The default rate on alternative-A loans moved up from 2.69% in May to 3.0%. "The default rates on alt-A and subprime loans deteriorated sharply in June from May, after six months of gradual erosion," FBR managing director Michael Youngblood said." (read more here, subscription required).
The above taking place even before further financial world angst set in during July and August