You could lose your dream home. Are you waiting for a FOR SALE sign to appear in front of that bungalow that checks all of your "gotta have" boxes? If it goes on the market next week, but you balk because of the current rates, you may lose your chance to own it.
You could refinance. While it's hard to predict future market movement, our economic environment is expected to cool in the years ahead. This means you can likely refinance to a lower rate during the first few years in your new home.
Several rates are available. Don't be discouraged by the rate environment today. There are options for fixed and adjustable rate mortgages. You might also be able to lower the rate with a temporary or permanent buydown. Speaking to a licensed Mortgage Loan Originator will be the best way for you to figure out which program and rate are applicable to your situation.