FALLING MORTGAGE RATES DON'T BOOST HOUSING STARTS.(Business)

Byline: Ann Mariano Washington Post

Housing starts fell in September to their lowest level since October 1982 - the bottom of the last recession - despite this year's declining mortgage interest rates, the government said Wednesday.

The 5.2 percent drop in construction last month has continued a long downward spiral, with starts dropping for six of the last nine months.

Housing starts in the nine months fell 6 percent from the same period last year, according to the Commerce Department.

Several housing industry analysts said they were surprised by the report. They had predicted that construction starts would remain level or even rise in …