In this passage, we have another temple-related thanksgiving. Again, the Levites are at the center of it, and again, the Psalms are being sung. They may have picked that Psalm (or those Psalms - several Psalms fit that description, as we've noted previously) simply because it is a Psalm of thanksgiving, but perhaps alternatively because it called to mind the dedication of the temple of Solomon (that passage is reproduced following our main passage).
It is interesting to note that the ancient men - men who had survived the captivity and who remembered Solomon's temple from before the captivity - saw the foundation restored again, some wept. The may have sung as well Psalm 147, which speaks of the rebuilding of Jerusalem. Jewish tradition lumps Psalms 146 and 147 together as being psalms of the exile. They are reproduced below, as well.
In Psalm 146 we see a song of praise and of confidence in God alone for salvation. In Psalm 147 we see a psalm of thanksgiving for the rebuilding of Jerusalem but more than that for the mercy of God. Notice the comment, "He hath not dealt so with any nation: and as for his judgments, they have not known them." But now the nations have received the salvation of God, they have known His commandments and followed after them according to His mercy. This ought to make the Jews jealous - that their God has turned to us, and made us his people - taught us his law - and given redemption to us.
Now in the second year of their coming unto the house of God at Jerusalem, in the second month, began Zerubbabel the son of Shealtiel, and Jeshua the son of Jozadak, and the remnant of their brethren the priests and the Levites, and all they that were come out of the captivity unto Jerusalem; and appointed the Levites, from twenty years old and upward, to set forward the work of the house of the LORD.
Then stood Jeshua with his sons and his brethren, Kadmiel and his sons, the sons of Judah, together, to set forward the workmen in the house of God: the sons of Henadad, with their sons and their brethren the Levites. And when the builders laid the foundation of the temple of the LORD, they set the priests in their apparel with trumpets, and the Levites the sons of Asaph with cymbals, to praise the LORD, after the ordinance of David king of Israel.
And they sang together by course in praising and giving thanks unto the LORD; because he is good, for his mercy endureth for ever toward Israel. And all the people shouted with a great shout, when they praised the LORD, because the foundation of the house of the LORD was laid.
But many of the priests and Levites and chief of the fathers, who were ancient men, that had seen the first house, when the foundation of this house was laid before their eyes, wept with a loud voice; and many shouted aloud for joy: so that the people could not discern the noise of the shout of joy from the noise of the weeping of the people: for the people shouted with a loud shout, and the noise was heard afar off.
2 Chronicles 7:1-4
Now when Solomon had made an end of praying, the fire came down from heaven, and consumed the burnt offering and the sacrifices; and the glory of the LORD filled the house. And the priests could not enter into the house of the LORD, because the glory of the LORD had filled the LORD'S house.
And when all the children of Israel saw how the fire came down, and the glory of the LORD upon the house, they bowed themselves with their faces to the ground upon the pavement, and worshipped, and praised the LORD, saying, For he is good; for his mercy endureth for ever.
Then the king and all the people offered sacrifices before the LORD.
Praise ye the LORD. Praise the LORD, O my soul. While I live will I praise the LORD: I will sing praises unto my God while I have any being.
Put not your trust in princes, nor in the son of man, in whom there is no help. His breath goeth forth, he returneth to his earth; in that very day his thoughts perish. Happy is he that hath the God of Jacob for his help, whose hope is in the LORD his God: which made heaven, and earth, the sea, and all that therein is: which keepeth truth for ever: which executeth judgment for the oppressed: which giveth food to the hungry.
The LORD looseth the prisoners: the LORD openeth the eyes of the blind: the LORD raiseth them that are bowed down: the LORD loveth the righteous: the LORD preserveth the strangers; he relieveth the fatherless and widow: but the way of the wicked he turneth upside down.
The LORD shall reign for ever, even thy God, O Zion, unto all generations. Praise ye the LORD.
Praise ye the LORD: for it is good to sing praises unto our God; for it is pleasant; and praise is comely.
The LORD doth build up Jerusalem: he gathereth together the outcasts of Israel. He healeth the broken in heart, and bindeth up their wounds. He telleth the number of the stars; he calleth them all by their names. Great is our Lord, and of great power: his understanding is infinite.
The LORD lifteth up the meek: he casteth the wicked down to the ground. Sing unto the LORD with thanksgiving; sing praise upon the harp unto our God: who covereth the heaven with clouds, who prepareth rain for the earth, who maketh grass to grow upon the mountains. He giveth to the beast his food, and to the young ravens which cry. He delighteth not in the strength of the horse: he taketh not pleasure in the legs of a man.
The LORD taketh pleasure in them that fear him, in those that hope in his mercy.
Praise the LORD, O Jerusalem; praise thy God, O Zion. For he hath strengthened the bars of thy gates; he hath blessed thy children within thee. He maketh peace in thy borders, and filleth thee with the finest of the wheat. He sendeth forth his commandment upon earth: his word runneth very swiftly. He giveth snow like wool: he scattereth the hoarfrost like ashes. He casteth forth his ice like morsels: who can stand before his cold? He sendeth out his word, and melteth them: he causeth his wind to blow, and the waters flow.
He sheweth his word unto Jacob, his statutes and his judgments unto Israel. He hath not dealt so with any nation: and as for his judgments, they have not known them. Praise ye the LORD.