Can't you buy now at high APR and then refinance later? I would think these large rates would not last more than 2-3 years. You will take some hit for short period but also might get better deal as there are not a lot of buyers. After rates come down, you might easily end up paying 5-10% over asking price. Is there any issues in refinancing later?
I tend to agree with your logic but a lot of people think they know what rates will be like and what a home will be worth and any number of things in 2 to 3 years. I'd say that they everyone is always gonna pay more then they want and only question is if it's going to the seller or the bank.
My dad gave me these rules for home buying:
* can I make the monthly payment for as long as I own the home?
* don't buy unless you expect not to sell for 5 years
