The Royal Institution of Chartered Surveyors (Rics) has said there have been signs of recovery in the property USA market following the recent announcement by the Treasury there of a plan to buy up mortgage-backed securities in return for lenders offering cheaper rates.

In the three weeks since this action was instigated, the number of mortgage applications have increased, rising in the first two weeks and remaining about level in the third week, Rics noted.

The body said this could be a sign of improvement and noted that the property USA market may also be boosted this week by another interest rate cut, suggesting the Federal Reserve may decide to cut the Federal Funds rate by another 0.5 per cent in response to recent data showing the economy slowing further and unemployment rising.

Figures from market research company Realtytrac for November showed a seven per cent decline in the number of foreclosures compared with October, although it suggested this trend may be a blip.

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