The National Association of Home Builders reported that the NAHB/Wells Fargo Housing Market Index fell to 34 in July, down from 36 in June. Economists polled by Reuters had expected a reading of 35. This marks the 15th consecutive month the index has remained below 40. The gauge of current sales conditions dropped one point to 37, while the measures for sales expectations and prospective buyer traffic each declined two points. NAHB Chairman Bill Owens said many prospective buyers remain on the sidelines as they wait to see if mortgage rates will fall and assess the economic outlook. The share of builders cutting prices rose to 37%, with the average price reduction holding steady at 6%, while the proportion offering sales incentives climbed to 63%.