In May, sales of new single-family homes in the United States fell to the lowest level in six months, indicating a slowdown in the housing market recovery due to increased mortgage rates dampening demand. According to the Commerce Department’s Census Bureau, new home sales dropped by 11.3% to a seasonally adjusted annual rate of 619,000 units. This marked the lowest level since November. The sales pace for April was revised upward to 698,000 units from the initially reported 634,000 units.

Economists surveyed by Reuters had anticipated new home sales, which constitute over 10% of U.S. home sales, to increase slightly to a rate of 640,000 units.

The housing market has encountered a slowdown, influenced by a resurgence in mortgage rates that has also dampened demand for existing homes and new home construction. Residential investment showed robust growth in the first quarter.

According to data from Freddie Mac, the average rate for the widely-used 30-year fixed mortgage reached a six-month peak of 7.22% in early May, though it eased to 7.03% by the month’s end.