Interest rates are at all time lows....property values at all time lows....and you can afford to buy...
A couple of thoughts, you might purchase a less expensive home...there are a lot of nice ones out there below $400,000....The alternative is rent, which provides no positives for you. You might try playing with a rent vs buy calculator (http://www.realtor.com/home-finance/financial-calculators/rent-vs-buy-calculator.aspx) to help with your decision.
For me personally, I prefer to own my own home...aside from the be tax benefits, I like building equity in a property that's mine, and I can do with what I please.
Hope this helps! Good luck with your search...don't let PMI be the deciting factor