 One measure of the health of the economy, the Wells Fargo Home Builders Index, fell in July by 1.242. Here's WTOP's Dan Ronan. Higher mortgage rates, elevated rates for construction and development loans are reportedly putting a damper on builder sentiment. 31% of the home builders say they're cutting prices to increase home sales. The index measures builder sentiment with a reading of 50 or more indicating optimism about home market construction.