What do government-sponsored enterprises like Fannie Mae and Freddie Mac primarily support?

Government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac primarily support affordable housing financing. Their main goal is to provide liquidity, stability, and affordability to the housing market, particularly focusing on helping low- to moderate-income families access home loans. By purchasing and guaranteeing mortgages, these enterprises enable lenders to offer loans at lower interest rates and more favorable terms, which ultimately supports the availability of affordable housing options.

The focus on affordability helps stimulate the housing market and address the need for housing solutions, particularly for those who might otherwise struggle to secure financing through conventional means. This mission aligns with the broader government objective of promoting homeownership and ensuring that a diverse range of households can benefit from stable housing opportunities.