Freddie Mac is a government-sponsored enterprise (GSE) in the United States that was established in 1970. Its primary purpose is to provide liquidity, stability, and affordability to the housing market by purchasing mortgages from lenders. This process helps to ensure that banks have enough funds to continue lending to homebuyers. By buying and securitizing these mortgages, Freddie Mac helps to lower interest rates and make homeownership more accessible. It plays a crucial role in the secondary mortgage market, working alongside other GSEs like Fannie Mae to support the housing finance system and promote affordable housing options for Americans.