Final answer:
The US housing market is predicted to see a significant correction, influenced by increased demand for housing, economic recession, low-interest rates, and government housing policies.
Step-by-step explanation:
The US housing market is predicted to see the second biggest correction of the post-WWII era. This correction is likely influenced by:
- Increased demand for housing: When the number of people at the most common ages for home-buying increases, it can lead to a higher demand for housing.
- Economic recession: If there is an economic recession, people may have less confidence in the economy and their job security, which can affect the housing market.
- Low-interest rates: When interest rates are low, it can make it more affordable for people to buy homes and can increase demand.
- Government housing policies: Government policies regarding bank regulations and home loans can impact the housing market.