The US Federal Reserve has announced a major quantitative easing package to help the country’s economy.

America’s central bank is buying up $1.2 trillion (£829 billion) of government debt, in a bid to increase spending and lower mortgage rates.

The latter effect could help bolster the market for property in the USA meaning those who buy now could see their investment gaining in value before long.

It is also hoped that the stimulus will bolster the wider economy, which could help the housing sector improve.

Federal Reserve chairman Ben Bernanke told CBS News on Monday that the US will be out of recession by the end of 2009.

Earlier this week signs of a possible recovery in the market for property in the USA emerged with news that the number of residential building projects being started in February was up by 22 per cent from January’s total.

The government’s department of commerce revealed that these jumped from 477,000 homes to 583,000.

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