Primary Mortgage Market Definition

The primary mortgage market is the aggregated mortgage market where borrowers and primary lenders, or mortgage originators, meet to negotiate mortgage terms. Mortgages are originated on the primary mortgage market. Most mortgages are subsequently sold on the secondary mortgage market, often packaged with many other mortgages to form a mortgage-backed security. When you buy or sell a home, the financial transaction will be handled as part of the primary mortgage market.