Intent to Purchase

Hi there,

I signed an 'Intent to Purchase' and put a $1000 holding deposit on an apartment about 4 months ago.  I have not signed a contract or paid any further deposit since.

Anyway, since I paid the holding deposit, interest rates have gone up and the possibility of finding a bargain has also gone up.  I was just wondering if anyone has any advice on what to do next.  Is it unethical to back out of the deal?  I don't mind losing the $1000 if it means I can get a similar place for $20 – 30,000 cheaper.  Or is it possible to go back to the buyer and offer a lower amount based on the circumstances?

Any advice greatly appreciated.

Cheers.