In advance of final numbers, due out in late August, ForesightAnalytics uses earnings reports and call report filings fromseveral banks to come up with its data, which has been quiteaccurate. Foresight partner Matthew Anderson tells GlobeSt.com thatwhile single family and condo construction loans are the mainsource of the problems--delinquency rates for for-sale residentialconstruction loans are in excess of 10% compared to the low singledigits for commercial--delinquency rates on the commercial side areon the rise as well.

"While the stock market seems to think the worst is over ourdata shows that, as of the second quarter, things were stilldeteriorating on all fronts," Anderson says. "The results are notexactly alarming, but certainly there is cause for a little concernthat commercial mortgage delinquency figures are continuing toclimb."

The total delinquency rate for commercial mortgages rose to 2.1%in Q2 from 1.8% in Q1 and 1.6% in Q4 2007. The increase is mainlydue to nonaccrual loans, which increased to 1.1% in Q2 from 0.9% inQ1.