Fannie Mae primarily supports which sector of the housing market?

Fannie Mae primarily supports the residential loan market by providing liquidity, reducing the cost of borrowing, and promoting stability in the mortgage market. It accomplishes this by buying mortgages from lenders, which allows those lenders to reinvest their funds into new loans. This process helps to ensure a steady flow of financing for homeowners seeking mortgages to purchase or refinance their homes.

Fannie Mae's primary mission is to expand affordable housing and improve access to mortgage credit for middle- and lower-income families. This focus on the residential sector distinguishes Fannie Mae from entities that may support commercial real estate, rental properties, or real estate investment trusts, which focus on different aspects of real estate finance. By engaging specifically with the residential loan market, Fannie Mae plays a crucial role in facilitating homeownership, thus influencing housing market dynamics significantly.