Housing starts tumble in September as rising mortgages cool demand

New U.S. home construction slumped in September, adding to evidence that rapidly rising mortgage rates are continuing to cool demand and the once red-hot housing market.

Housing starts slid 8.1% last month to an annual rate of 1.439 million units, according to new Commerce Department data released on Tuesday. That is below Refinitiv economists' forecast for a pace of 1.475 million units.

Applications to build – which measures future construction – rose to an annual rate of 1.56 million units, led by multi-family properties. 

Permits for construction of single-family housing starts,...