Housing affordability hits worst point in 40 years

A rise in US mortgage rates has lowered housing affordability to its lowest level in almost four decades. Holding out for a break is a high-stakes bet for those looking to get into the housing market. The property boom's price rises finally slowed last year, but house prices have recovered the roughly $3 trillion they lost. One indicator of borrowing costs has reached a level not seen in almost two decades, and the federal reserve has hinted it may raise rates further, boosting the likelihood of 8% mortgage rates.