What is Fannie Mae primarily associated with?

Fannie Mae, officially known as the Federal National Mortgage Association, is primarily associated with the secondary mortgage market. This refers to the system in which existing mortgage loans and mortgage-backed securities are bought and sold. Fannie Mae was established to expand the flow of mortgage funds in the U.S. housing market, which helps increase the availability and affordability of home financing.

By buying mortgages from lenders, Fannie Mae provides them with the capital they need to offer more loans to consumers. This process helps to stabilize and lower the cost of mortgage credit across the country, contributing significantly to the overall functioning of the housing market. Understanding Fannie Mae's role in this market offers insights into how home financing operates and the importance of secondary markets in facilitating access to affordable housing.