A primary market is defined as the market where what occurs?

The primary market is where loans are applied for and originated, which is the essence of this market's function. This is the initial stage of the mortgage process, where borrowers interact directly with lenders to secure financing. In this market, various types of financial institutions, such as banks and credit unions, give out loans directly to consumers or businesses. This is distinct from other aspects of the mortgage process, such as the secondary market, where existing loans are bought and sold or pooled together for securitization. Understanding the primary market is crucial because it sets the foundation for the entire lending process by determining how many loans are made and the types of loans available to borrowers.