What happened Many housing-related stocks plummeted on Wednesday, following the release of mortgage application figures that were sharply lower than the prior-year period. Shares of Zillow (NASDAQ: Z) (NASDAQ: ZG), Redfin (NASDAQ: RDFN), and Meritage Homes (NYSE: MTH) all fell more than 10%. So what As the number of cases of COVID-19 continues to surge in the U.S., government leaders have issued stay-at-home orders and other social distancing guidelines in an attempt to slow the spread of the disease caused by the novel coronavirus. While helping to save lives, these measures are likely to drive the economy into a severe recession. During difficult economic times, people pull back on making large purchases when possible. And for most people, a house is the largest purchase they'll ever make. In turn, many people are choosing to forgo buying a new home. Housing-related metrics are beginning to bear this out; mortgage applications to purchase a home plunged 24% year over year this past week. New home sales are expected to fall sharply due to COVID-19. Image source: Getty Images. Now what Despite more than $2 trillion in stimulus measures designed to mitigate the economic damage brought about by COVID-19, it's looking increasingly likely that we're about to enter a deep and prolonged recession. People are getting sick, losing their jobs, and suffering large losses on their investments. Amid this backdrop, the housing market is likely in store for a brutal spring -- and potentially a very difficult year ahead. 10 stocks we like better than Zillow Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Zillow Group (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Redfin, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Meritage Homes. The Motley Fool has a disclosure policy.Source