Investors love the US housing bill. Now that President George Bush and the US House of Representatives are behind the proposal, the share prices of Freddie Mac and Fannie Mae jumped by more than 11 per cent on Wednesday and looked likely to rise again on Thursday.

The package, which props up the mortgage agencies, helps up to 400,000 strapped subprime borrowers refinance their homes, and funds community purchase of foreclosed properties, could go into effect as soon as next week, if the Senate follows suit. Fannie’s and Freddie’s equity investors are particularly thrilled about what it does not include. The two agencies do not have to stop paying dividends, nor must they issue preferred stock to the government in exchange for federal aid.