WASHINGTON (AFP) - With jobless numbers sky-high and year-end holidays close at hand, the US Congress passed legislation to extend unemployment benefits and expand a vastly popular tax credit for homebuyers.

One day after the Senate voted 98-0 for the bill, the House of Representatives approved it by an equally overwhelming 403-12 margin, sending the measure to President Barack Obama to sign into law.

The legislation allows workers in all 50 US states to get 14 more weeks of unemployment benefits, while those in states with jobless rates over 8.5 percent would be able to draw an additional six weeks for a total of 20.

It would also extend an 8,000-dollar tax credit for first-time homebuyers, which had been due to expire November 30, and expand the benefit to some other homeowners.

Supporters say the credit has helped buoy the battered US housing market.

The vote came as official data from the US Labor Department showed Initial claims for US unemployment insurance benefits fell more than most economists expected last week.

New claims for jobless benefits dropped to a seasonally adjusted 512,000 during the week ended October 31.

The number was below the average economist forecast of 522,000, and was the first decline following two weeks of increases.

The Labor Department revised upward the claims number for the previous week, to 532,000 from 530,000.

The latest initial claims reading supported a trend of slowing job losses since a March peak and was the lowest level since January 3, when initial claims stood at 488,000.