Real Estate Glossary

What is Secondary Mortgage Market?

The secondary mortgage market is the market where mortgages are bought and sold after they have been originated by a lender. This includes entities such as Fannie Mae and Freddie Mac, which purchase mortgages from lenders and then package them into securities that are sold to investors. The secondary mortgage market plays an important role in making mortgages more widely available, as it allows lenders to free up funds to make new loans.