Mortgage rate impact on real estate

[Joseph Henry]

I live in a suburb of Sacramento where the median list price is around 780k. We currently own a home values at 950k. The loan balance remaining on this house is 70k. We have been thinking about upgrading to a bigger home. The homes we are interested in are priced in the 1.5 to 2M range. Considering the recent increase in the mortgage rates, what would you do if you were in my situation? That is roughly $700 increasing in the payment per month.