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According to the National Bureau of Economic Research, a recession is a significant decline in economic activity spread across the economy, lasting more than a

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According to the National Bureau of Economic Research, a recession is "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." A review of the factors that indicate a recession suggests that 2021 will generally see positive increases in the economy. Real Gross Domestic Product is expected to grow 4.7416 after a decline of 5.91$6 in 2020, and the Congressional Budget Office predicts the unemployment rate will fall 209% or more. Personal income will rise slightly while long-term interest rates will remain at 196, and inflation will be under 1.596. Prediction 2: Buyer demand will continue to grow As economic stability returns and personal incomes rise, the number of first-time home buyers will increase, resulting in greater competition for desirable homes and upward pressure on home prices. Positive factors that fuel demand include continued population growth, rebounding personal income races, and improving consumer confidence. President-Elect Joe Biden has proposed a $15,000 pax credit for first-time homebuyers, which, if passed, will further spur buyer demand. Prediction 3: Mortgage interest rates will remain low Lawrence Yun, chief economist with the National Association of Realtors, expects the: 30-year, fixed mortgage rates will remain stable or slightly increase in 2021 from the 50-year low of 2.71$6 in 2020. So. while the mortgage rate may go up a loi, it will still remain historically low, further spurring buyer demand. Prediction 4: Housing supply will lag in 2021 Although the number of existing homes available for purchase will rise as sellers become more comfortable opening their homes to prospective buyers, new home construction will be restrained for most of 2021 as builders "grapple with a shortage of lots, labor and building materials," according to National Association of Home Builders (NAHB) Chairman Chuck Fowke- Affordability and the gap in the cost of living across the U.S. will continue to be a problem, especialy in areas where housing is in high demand with few new construction projects

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