The housing report added to the evidence that economic growth is strong enough to push prices higher.

The housing report said starts fell by 2.2 percent in September.

Befitting the market's current defensive mood, the housing report had no positive impact on prices yesterday.

Yesterday's housing report was the latest to suggest a slowdown.

Two factors were responsible for the private analysts' skepticism about the housing report.

The one possibly positive note in the housing report was that permits for new structures were up 3.7 percent last month.

Consequently, the housing report had little effect on the market.

But no doubt it was the jump in the housing report that sent up the warning flag yesterday.

Earlier, the bond market largely overlooked a strong housing report in the morning, which caused only a minor price dip.

The housing report showed that starts last year totaled 1,350,500, or 7.3 percent below the 1994 level.