You're in a tough spot if you're on the way to being homeless if you don't pull the trigger. This housing market won't be doing you any favors, be aware of that going in. Hopefully in another couple years you could refinance at a lower rate but don't buy with that hope in mind. Make sure you can afford the payments even if rates don't go down in the near-ish future. Don't buy a house with obvious issues just bc of the slim market, the cost will be way worse long term.