They’ll do this again once they run out of money because rates don’t drop as they’re counting on and rents don’t increase like they’re counting on. 

I'm not sure what to do in this situation, whether to drop the deal and lose my earnest money or try to find another lender.

Over the last 5 days, LGI Homes dropped by 13.91%, Tri Pointe Homes by 9.91%, Toll Brothers by 9.25%, and Meritage Homes by 8.94%.What is there to look forward to?

It is also a little bit of speculation on my part that 1) home values will continue to appreciate at or above the inflation rate and 2) that eventually rates may drop 1 - 2% (I am at 7.5% on my most recent refinance) and will be able to do a cashout refi in 2 - 5 years.What are other's thoughts on this?

I'm not sure what to do in this situation, whether to drop the deal and lose my earnest money or try to find another lender.

It drops market price. 

How much did you drop on their course?

@Jingwen Dunford the principle balance never drops it stays the same at 100K.

I'll drop an article about it below.  

Market value typically refers to the price a property would likely sell for under current market conditions, while property value can sometimes be an assessed value for tax purposes or an estimate by an online tool.If you're seeing a significant drop in your property's value, I’m guessing you might be using Zillow.