The growth of U.S. house prices saw a significant slowdown in March, a possible consequence of rising mortgage rates, according to data issued on Tuesday.

The Federal Housing Finance Agency (FHFA) reported a 0.1% increase in prices for March, succeeding a revised 1.2% increase in February. The year-over-year increase in prices was 6.7% in March, showing a decline from the 7.1% increase in February.

Sales of existing homes, which account for the greatest part of U.S. house sales, experienced a drop in March as the average rate for the popular 30-year fixed-rate mortgage went near 7%. Despite this, as housing inventory remains underneath pre-pandemic volume, house prices could persist at a high level for a while. Comparing the first quarter of this year and the first three months of 2023, prices increased by 6.6%, and the increase was 1.1% contrasting to the fourth quarter of the previous year.

“U.S. house prices continued to grow at a steady pace in the first quarter,” remarked Anju Vajja, FHFA’s Division of Research and Statistics’ deputy director. “Over the course of the last six consecutive quarters, the low inventory of homes for sale has continued to play a role in house price appreciation, despite mortgage rates remaining around 7%.”