Homebuilder Sentiment Drops to 23-Year Low as Mortgage Rates Surge, But Biggest Builders May Be Insulated

Homebuilder sentiment index fell again in October to 40, lowest since January, as mortgage rates hit 23-year highs.

Index may not reflect experiences of largest builders, who can offer incentives like rate buy-downs.

Big builders have ready inventory and lending capabilities smaller ones lack.

First-time buyers more sensitive to rate hikes make up larger share of new home sales.

Public homebuilder earnings reports next two weeks may show divide between large and small builders.