If you are taking "inflated proceeds" from the sale of a home recently and paying an inflated amount, it's actually kind of a wash. Waiting is a double edged sword. The housing market has slowed. A lot of sellers are still waiting on inflated prices in the hopes to cash in like they saw others do. This will slow the price decreases that should occur. Add to that the increasing interest rates and, once again you have an "it's a wash" situation. Who knows how high interest rates will go; but, they will go higher. Nobody can predict when and where housing prices will decrease. Without knowing those two things, you and we are just guessing. Don't make your decision based on what rates were. Right now you have to decide "do I take today's lower rate (compared to future increases) and the "maybe" higher price OR do I wait for lower prices and tomorrows higher rate?". It's kind of a wash.
With the last couple of year's price increases people went through the thought process of cashing in on the inflated home prices only to realize they were paying inflated prices for their replacement home. Good luck with whatever you decide. The one thing I will add is that, in my opinion, if one got a windfall from the sale of a home in the past couple of years, use that windfall as a downpayment for your next house and don't spend it. Why? Because spending it to buy a boat or truck or whatever is what will potentially put you in trouble with your new home purchase. Putting those funds into your new home, assuming the market drops down to a sane level where it would otherwise have been, even if below your purchase price, will result in no actual loss to you. In essence, you will have sold at an inflated level and bought at an inflated level and the net affect will be as though this market roller coaster did not exist or occur for you.
