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China may make a ‘retaliatory’ move that experts say will ‘hit' US homeowners 'hard.' Here's what's happening

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China is one of the largest holders of agency mortgage-backed securities, along with Japan , Taiwan and Canada .

China had already begun selling off some of its U.S. MBS last year and there's speculation it’s continuing to do so.

A sell-off would translate into lower prices for the bonds and, thus, higher mortgage rates for Americans .

If you’re a first -time homebuyer, you might be able to apply for an FHA loan, which is guaranteed by the Federal Housing Administration .

If demand stalls, sellers may want to consider lowering the asking price or offering incentives to sweeten the pot.

On the other hand, buyers and sellers may simply choose to wait it out.