SOUTH BEND — A government bailout of mortgage giants Freddie Mac and Fannie Mae will help keep more than half of the nation's mortgages from sinking. But could it mean a turnaround for the struggling housing market and for those still struggling to stay afloat?

The government seized control of the mortgage companies to try and stabilize the housing market. The takeover will provide up to $200 billion to keep the two lending giants from collapsing and to keep the mortgage pipeline moving.

Together, Freddie Mac and Fannie Mae own or guarantee more than $5 trillion in home loans, about half the nation's mortgages.

They've also lost $14 billion in the past year, and that loss has helped fuel an already unstable housing market. So, will the bailout help turn things around?

Some experts say, at the very least, it's a step in the right direction.

"It's stabilizing an unsure market," said Teacher's Credit Union Senior Vice President of Sales and Marketing Paul Marsh. "It will, in the long run, hopefully lower rates that make houses more affordable."

Those lower rates would apply to almost any mortgage, fixed or adjustable, and not just if Fannie or Freddie is footing the bill. Almost anyone shopping for a new mortgage for a new home or looking to refinance their current home at lower rates could see more bang for their buck.

"This will affect housing value. As more of these houses get sold in the housing market, housing prices will tend to start rising again," said Marsh.

But there's one group the bailout won't help, and unfortunately, it's those who need help the most. Homeowners who are struggling to pay their bills have fallen behind on payments or those who have already lost their homes would receive almost no specific relief under the government bailout plan.

"It's unfortunately not going to help, I don't think, the people that are caught in the pipeline now," said Greater South Bend/Mishawaka Association of Realtors President Mike Rans.

The problem, say experts, is inventory.

More than 3,000 homes are now listed on the market in St. Joseph County alone. Average home prices dipped another percentage point to 6% in August. Median home prices dropped by 3% over the last two months, a decline of 9% for the year.

Until that changes, experts say the bubble won't burst.

"I don't see this turning anything around overnight," said Rans. "This is a market adjustment. It took some time to get us into this situation. It's certainly going to take some time to take us out of it."

That's time many still struggling to stay afloat don't have, but experts say it's also a sign of something else they haven't seen since the housing slump started: hope that better days lie ahead.

"Maybe this is the big catalyst that moves it along," said Marsh. "We may see some other things that happen down the road, but this is a good sign. There's other issues we're going to have to work through, but this is a positive step."

The other major impact from the bailout is its cost to taxpayers, who are footing the $200 billion bill.

Marsh says, if that sits uneasily with you, think of it as saving for the future.

"What's worse [than spending that money] is an unstable market," he said. "It may cost us a little bit. But, in the long run, getting consumers back on their feet and back in homes is positive. And that will work it's way through."