Anyone who bought or refinanced a home in recent years likely has a mortgage with a nice low interest rate. Some don’t want to give up their 3% mortgage, especially if they have to swap it out for a 7% mortgage. But interest rate is not the primary reason people move. Most people move to be closer to family, because of a lifestyle change (retirement, mobility, health, change of scenery or climate), downsizing to a smaller home, or moving up for more space. Keep in mind that interest rates will change. Then refinance when they drop.
In the meantime, price appreciation goes up for both your present home and for your next home. If you are moving to an area with a higher rate of appreciation than your current home, it could cost you more to wait for a better rate. Finding your perfect home could take time, especially with low inventory. When the perfect home finally becomes available, can you afford to pass it up. Do keep pouring money into your existing home for repairs and updates, or would you rather spend it on your next home. Sometimes waiting for a better interest rate is not an advantage when it’s time to move on.