The number of Americans filing new applications for unemployment benefits dropped to a four-month low last week, highlighting solid job growth in September. This points to continued economic expansion in the third quarter, according to a report from the Labor Department.

On Wednesday, the U.S. central bank reduced interest rates by 50 basis points, aiming to support the labor market. Federal Reserve Chair Jerome Powell emphasized policymakers’ commitment to sustaining low unemployment rates.

However, the housing market struggles continue due to persistently high prices, despite an increasing supply of homes. Lower borrowing costs are expected to stimulate demand, potentially keeping house prices elevated.

(With inputs from agencies.)