Which of the following practices is associated with steering?

Steering refers to the practice where real estate agents guide prospective homebuyers toward or away from certain neighborhoods based on demographic factors such as race, ethnicity, or religion. This practice is considered discriminatory because it limits individuals' choices based on their background, rather than allowing them to make decisions based purely on their preferences for housing and community.

The option that highlights encouraging buyers to remain in their communities based on demographics directly aligns with the definition of steering, as it implies a bias in the recommendation process, suggesting that individuals should live near others who are similar to them, rather than fully exploring their housing options.

In contrast, offering competitive mortgage rates, selling homes without discrimination, and promoting new housing developments do not involve discriminatory practices or limit choices based on demographics. These practices support equitable access to housing and promote fair and open market conditions. Therefore, the identification of steering as encouraging buyers to stay within their communities based on demographics accurately reflects the unethical nature of this practice.