Senate lawmakers approved the bill, which contains billions of dollars in loan guarantees, a tax break for first-time homebuyers and many other provisions, by a vote of 72 to 13.

The bill now head to the White House, President Bush has indicated he will sign it in spite of objections about a provision directing $4 billion in emergency aid to local communities to buy and rehabilitate foreclosed homes.

Economists, consumer advocates and other analysts said the package of programs for struggling homeowners and shaken mortgage lenders is unlikely to relieve the foreclosure crisis that is driving the nation toward recession.
With foreclosures at record levels, home sales sluggish and property values down, America is in its deepest housing slump since the Great Depression.
Fears that Fannie Mae and Freddie Mac, the largest U.S. mortgage companies, might collapse upset global markets earlier this month and forced the Bush administration to call for emergency measures to shore up investor confidence.
Fannie Mae CEO Daniel Mudd said “the legislation should reinforce confidence that the GSEs will be able to serve the housing finance system now and in the future.”

“If we’re lucky enough to help 400,000 households,” said economist Jared Bernstein, “I’m afraid it’s a drop in the bucket.”

How this will affect the American housing market and the result it will have on the American economy is yet to be seen.