Mortgage applications 'increase' in US

There are signs that the US property market is beginning to recover, despite the outlook being "still relatively gloomy", one report has stated.

According to the Royal Institution of Chartered Surveyors' Global Real Estate Weekly publication, recent government intervention and relaxation of lending criteria is boosting mortgage applications in the country, a trend which builders may see as an indication that demand for property is set to increase.

The report also stated that an interest rate cut of 50 basis points is "likely" when the Federal Reserve meets to discuss the issue next week, a move which would bring the fund rate down to 0.5 per cent.

Overseas investors who are considering purchasing property in the country may wish to make note of any decision by the Federal Reserve, as it could affect the availability of mortgages in the country.

The Dallas Morning News recently stated that the current supply of cheap properties in the US is resulting in a growing number of overseas investors purchasing homes in the country.