What does the term “GSE” refer to in the context of real estate?

The term "GSE" in the context of real estate stands for government-supported entities. These organizations, such as Fannie Mae and Freddie Mac, play a crucial role in the housing finance system by providing liquidity, stability, and affordability to the mortgage market. They help to enhance the availability of mortgage credit by buying loans from lenders, which allows those lenders to offer more mortgages to consumers.

The involvement of GSEs is vital in ensuring that a wide array of borrowers has access to financing options for home purchases, especially during times of economic instability. By supporting the mortgage market, these entities contribute to the overall stability of the real estate sector and help maintain home ownership levels across the country.

Other terms listed do not accurately reflect the established meaning of "GSE" in the real estate context, making government-supported entities the correct interpretation.