The two actors are not "in the right headspace to be in a serious relationship," a source tells PEOPLE

Emma Roberts and Garrett Hedlund aren’t rushing things when it comes to their relationship.

A source tells PEOPLE the two are taking it slow after Roberts, 28, broke off her engagement with longtime love Evan Peters.

“Emma is newly single and neither she nor Garrett are in the right headspace to be in a serious relationship,” says the source. “They’re just having fun hanging out and hooking up.”

Reps for Roberts and Hedlund did not immediately respond to PEOPLE’s requests for comment.

Roberts and Hedlund, 34, were photographed holding hands in New York City in late March just weeks after reports first emerged about their relationship when they were seen kissing while on a dinner date in Los Angeles.

A source confirmed to PEOPLE in March that Roberts and frequent American Horror Story costar Peters, 32, had called off their engagement for the second time after seven years together. The confirmation came after Roberts and Hedlund were first spotted together.

Credit: JEAN-BAPTISTE LACROIX/AFP/Getty; Roy Rochlin/WireImage

Roberts and Peters met while filming the 2013 indie Adult World. They began dating in the summer of 2012, and PEOPLE confirmed their engagement in January 2014, after Peters popped the question over the holidays.

They previously called off their engagement in 2015 but soon rekindled their romance.

The actors hit a rough patch in July 2013, when Roberts was arrested in connection with domestic violence in Montreal, Canada.

“It was an unfortunate incident and misunderstanding,” Roberts’ rep reps said in a statement. “Ms. Roberts was released after questioning and the couple is working together to move past it.”

Hedlund is currently starring in Netflix’s Triple Frontier opposite Ben Affleck and Oscar Isaac. He was famously in a relationship with Kirsten Dunst for four years before they split in 2016.

If you suspect domestic violence, call the National Domestic Violence Hotline at 1-800-799-7233, or go to All calls are toll-free and confidential. The hotline is available 24/7 in more than 170 languages.