Housing analysts say U.S. affordability has fallen to its worst level in more than four decades, with the composite index that tracks mortgage payments, insurance, taxes and household income sinking below its prior lows from the early 1980s. A run-up in prices during the pandemic followed by the Federal Reserve’s rapid rate-hiking cycle has pushed the cost of purchasing a typical home beyond the reach of many would-be buyers. Borrowers taking out new loans now face rates close to 7%, while most existing homeowners still carry mortgages written at 2.5% to 3%, limiting supply and further squeezing affordability. Although the average 30-year fixed rate has slipped to a 10-month low, market observers caution that the improvement is too small to meaningfully narrow the gap between incomes and ownership costs. The strain is reflected in select U.S. cities that rank among the world’s least affordable: San Jose’s median house costs 12.1 years of local income, Los Angeles 11.2 and Honolulu 10.8, according to recent price-to-income data. Hong Kong tops the global list at 14.4, with Sydney at 13.8 and Vancouver at 11.8. Rising inventories could eventually provide relief, but economists expect any healing in the U.S. housing market to be gradual.