With 750 billion dollars flowing through the system, it's seems like the people who it was intended for aren't seeing a penny of that money. Well, somewhat.
Banks and mortgage companies are lending [money], but with stricter guidelines. You must have a reasonable loan-to-debt ratio, a good credit score, and in many cases 20% down payment. This of course excludes FHA loans (3% down payment for first-time buyers).
President Obama , promises to focus on distressed homeowners and the housing market with the second stimulus package that has exceeded over 800 billion dollars today! At the moment, it is still a bill waiting to be approved by congress because of partisan rhetoric, but when signed into law by the President, I'm sure this will have an apparent effect to the current housing market; slowly but surely.
Whatever your bias on the stimulus package and the housing market, always be optimistic!