There are a few schools of thought on this, the optimum is to buy for a lower price while rates spike up, then get lucky to catch the rates on the decline while you are in escrow just before you lock or refi down the road. Most people buy on payment, especially in the middle of the market. If rates go lower, they bid higher, if rates go higher, they pay less, either way they shop for a 2k mortgage as opposed to certain price or rate. Low rates tend to flood the market with buyers but they end up paying more in price, wiping out any payment benefit.
Cash buyers or those with big downs should shop when rates are high.
In your situation, I don’t know if rates should be the fundamental that you base your “yes/no” vote on, rates are a factor but not a fundamental. Not knowing your market, figure out what it’s 2003 price was (or a similar property) and it’s 2001 price and try to get closer to the 2001, combine that with the rate and more of it is in your favor than against.
I think you’ll find the opinion on the boards is that the million+ coastal market, still has some to give and hasn;t reverted to it’s pre bubble pricing, but I’m guessing since I haven’t looked at your market.
