04:18 PM EDT, 09/18/2024 (MT Newswires) -- The Federal Reserve lowered its interest rate benchmark by 0.5%, which is positive news for homebuyers as this cut can make mortgages more affordable while increasing their buying power, Redfin said in a note on Wednesday.

The significant decline in mortgage rate equates to over $30,000 in savings since July and decreases median monthly housing payments, according to the note.

The firm said it expects competition and prices in the housing market to rise as lower rates attract buyers who previously held off due to high costs.

Total listings are up 20% compared to last year and the market appears favorable for buyers, making it a potentially good time to purchase a home before competition intensifies and prices rise, Redfin added.

The firm recommended prospective homebuyers to consider locking in current low mortgage rates, as they stand at lowest levels in the last two years.