What term describes local markets where borrowers can apply for loans?

The term that refers to local markets where borrowers can apply for loans is the primary mortgage market. This market is where lenders directly originate mortgage loans to consumers seeking to buy homes or refinance existing loans. In the primary mortgage market, borrowers work with lenders such as banks and credit unions to obtain financing for real estate purchases.

The primary mortgage market plays a crucial role in the economy as it directly connects investors and individual borrowers, facilitating homeownership by providing the necessary funds. This contrasts with other markets, such as the secondary mortgage market, where existing loans are bought and sold among investors rather than originated.