05/08/2012 AT 6:00 AM ET
Katie Holmes and Suri Cruise seemed to enjoy a laid-back morning at a flea market in Milford, Conn., on Sunday.
The mother-daughter duo arrived at 11:30 a.m., making it just before closing with a woman who appeared to be a nanny.
“They were really cute together,” an onlooker tells PEOPLE. “Suri was pointing things out, saying, ‘Look at this, mommy,’ and Katie said, ‘Oh, yes, that’s great!’ They seemed really happy.”
Holmes, who looked just like any other mom casually strolling around the market, was dressed down and “seemed very relaxed,” the source says, adding that she picked up a picture frame from a vendor and was showing it to the woman who accompanied them.
– K.C. Baker