No we aren't cool with it, but that's just a reality of the market right now. Prices across the board have been inflating like crazy (in and out of the housing market), and the federal reserve has been jacking up interest rates to combat inflation. This is going to have an effect on the interest rates you can get on mortgages, which is making housing historically expensive right now. There are of course other problems with housing, but this is one of the worst times to be buying real estate right now. You will basically guarantee you need to refinance later on because these interest rates will eat your cash up.

There are of course other cheaper neighborhoods, but imo I would avoid buying a home at all until interest rates drop to a more reasonable level. This is especially true if your credit isn't amazing.