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The Role of the Secondary Market in Mortgage Financing

The secondary market for mortgages plays a critical role in sustaining a healthy housing market. Few homebuyers have sufficient savings to purchase a home outright, and many need to borrow money to buy their first home or to move to another one. Without the ability to borrow against the value of the home they are purchasing, many prospective buyers would be shut out of the market.

The secondary market allows participants in our mortgage system to access capital from investors in the United States and around the world. Any decline in the size of the secondary market would reduce the amount of capital available for mortgage lending and, in turn, borrowers’ options for financing the purchase of a home.

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2013-12-06 00:00:00


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