I have long said that your interest rate is THE MOST IMPORTANT Point in the deal to keep low, it’s even more important than the price you pay for the home. The Interest rate is that “fluff” payment that goes to the bank that you get absolutely no benefit from. However, don’t ever let an interest rate stop you from buying a home. You make/save money in several different ways when you own your home. The appreciation alone will be more than the higher interest rate so it is still far better of an option than renting.