SILVER SPRING, Md. — U.S. home construction fell 1.6% in September as builders continue to be tripped up by supply chain bottlenecks.

The Commerce Department reported Tuesday that the decline in September left home construction at a seasonally adjusted annual rate of 1.56 million units, 7.4% above the rate one year ago. August’s number was revised upward to 1.72 million from 1.62 million.

Applications for building permits, a barometer of future activity, declined 7.7% from August to 1.59 million.

Low interest rates and a desire for more space have lured buyers into the market, but rising costs for materials and a yearslong shortage of supply have creased prices.