In real estate transactions, what does the secondary mortgage market facilitate?

The secondary mortgage market plays a crucial role in the real estate industry by facilitating the purchase and sale of existing mortgages. This market allows lenders to sell the mortgages they have originated to other financial institutions or investors. By doing so, primary lenders can obtain immediate capital, which they can use to fund new loans, thereby continuing the cycle of lending in the primary mortgage market. This process helps to enhance liquidity, stability, and the availability of mortgage credit in the economy.

The other options do not accurately reflect the functions of the secondary mortgage market. Buying and selling new properties, transferring ownership of vacant land, and financing construction loans pertain to different aspects of real estate transactions and financing. The secondary mortgage market specifically focuses on mortgages that have already been issued, making the correct answer centered on the rights and obligations associated with existing mortgage loans.