What is the market called where borrowers and mortgage originators come together to negotiate mortgage terms?

The primary market is where borrowers and mortgage originators engage in the initial transaction for mortgage loans. In this market, individuals or entities seeking to buy homes or refinance existing loans approach lenders to secure financing. They negotiate the terms of the mortgage, including interest rates, loan amounts, and repayment schedules, directly with the originators, such as banks or mortgage companies.

This interaction is critical as it sets the foundation for the mortgage agreement and is characterized by the direct issuance of loans. The primary market involves fresh capital flowing from lenders to borrowers, contrasting with other markets, such as the secondary market, where previously issued loans are bought and sold among investors. Understanding this distinction is crucial for grasping how the initial phases of mortgage financing operate and how they contribute to the broader real estate finance ecosystem.