In which market do investors typically buy previously owned mortgages?

Investors typically buy previously owned mortgages in the secondary market. This market is a crucial part of the overall mortgage process where existing loans are bought and sold, allowing lenders to replenish their capital to issue new loans. The secondary market provides liquidity and stability to the mortgage industry by enabling lenders to sell their mortgage portfolios to investors, which can include government agencies, private companies, and institutional investors.

The primary market, on the other hand, is where new mortgages are originated between borrowers and lenders, such as banks or credit unions. In contrast, the tertiary market does not specifically pertain directly to mortgages and is not a recognized part of the typical mortgage financing structure. The capital market is broader and involves the trading of securities, and while it can include mortgage-backed securities, it does not specifically refer to the buying and selling of previously owned mortgages like the secondary market does.