Mubasher: US home builder sentiment reached its highest point in almost 20 months in October, as lower mortgage rates helped carrying a rebound which started in the spring through to the month, a builder lobby group’s report showed.

The National Association of Home Builders’ (NAHB) monthly confidence index, which measures the newly-built single family home market outlook, rose by three points to 71 in October.

This marked the strongest reading since February last year.

“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” NAHB’s chairman Greg Ugalde said.

The current sales conditions index, which is one of the components of the overall NAHB index, rose by three points to 78.

The gauge of the expected sales in the coming six months jumped six points to 76, with the buyer traffic tracker rose to 54.