Advice needed regarding saving for a home

[Kingsmen]

Hello fellow mustachians!  I want to get input regarding saving for a home.  Here is my financial situation:
Assets
Savings $18,000
403(b) $3,900 (8% with 5% match)
Roth $5300 (maxed)
Liabilities
None

Take home pay
$5000-$5500/month
Expenses
Rent $1100
Food $200
Car (gas,ins) $140
Utilities $180
Roth $450

I guess my question is whether I should even consider purchasing a home now, or save for more of a down payment.  I dread having to pay pmi.  Right now I am content because I am able to keep my savings rate at 50% or above.  However, I feel like I should own my own home.  Keep in mind that $1100 for rent in my area is a steal.  Also, is there any other savings vehicle that will pay more than 1%?  I feel like I should have my soldiers somewhere else besides a savings account.  In my field (nursing) I never feel like I could lose my job at any time so why not have my money elsewhere while keeping a small emergency fund.  Thanks in advance for your responses!

[vagon]

My view is if you have to pay PMI you cant afford the home.
I would also consider:
* Whether you can afford a home within close proximity to work
* Whether you should buy a home when you have sucha low cost on rent
* What your expected return on your (highly leveraged) property investment will be
* What you tax situation will look like after deductables
* Whether you are willing to rent out rooms in your (potential) new house

You should be able to find a better savings rate than 1% depending on when your intent to purchase is and how high your risk tolerance is.