Freddie Mac

Freddie Mac provides liquidity, stability and affordability to the US housing market. Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors in the open market. This secondary mortgage market activity increases the supply of capital available to financial institutions for mortgage lending purposes, reduces the cost of capital (interest rates) for residential real estate, and transfers the credit risk of mortgage lending in the US to large, well-capitalized investors worldwide.