Hi camp13. First, there's no reason to think that interest rates will be spiking for the rest of this year, and they may even come down a bit more. The Fed has made it clear that it's determined to use its powers to keep credit thawed for some time. So I wouldn't let today's interest rates unduly hurry you.

Second, remember that you actually buy the home (and hence qualify for the credit) at the time the transaction closes, not the time that an offer is accepted. So you could easily find a house you like in June, make an offer in July, set your closing date for late September.

Given these points, if I wanted to buy I'd start looking now, with an eye towards closing between late September and mid-November.