QUESTION IMAGE
Question
which statement best describes why it is difficult to sell a home during a recession?
mortgage rates are high.
demand greatly decreases.
mortgages become unavailable.
housing prices increase.
During a recession, economic activity slows, unemployment rises, and consumers have less disposable income. This leads to a significant drop in the demand for homes as fewer people can afford to buy. Mortgage rates may not necessarily be high during a recession, and mortgages are usually still available though lending standards might tighten. Housing prices typically do not increase during a recession but may decline or stagnate.
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Demand greatly decreases.