What is the focus of the secondary market in mortgages?

The secondary market in mortgages is primarily concerned with the trading of existing mortgages. This market allows financial institutions and investors to buy and sell mortgages based on their anticipated future cash flows. As such, the focus here is on the transfer and management of mortgage assets that have already been issued.

In this context, the buying and selling aspects allow lenders to free up capital, enabling them to issue more loans and thus increase liquidity in the mortgage market. The values of the mortgages can fluctuate based on interest rate changes and the creditworthiness of the original borrowers, making these factors crucial for investors who are assessing potential returns.

The other options involve activities typically associated with the primary mortgage market (issuing new mortgages), real estate assessments (evaluating real estate value), and property valuations (conducting mortgage appraisals), rather than the trading of existing loan assets which is the key function of the secondary market.