Interest rates may have put a home out of our reach for now, where to go from here?

Income $35k a year. Household is me and my disabled wife, no kids. $40k in savings. Absolutely no debt. We own a 1967 mobile home that probably isn't worth 5 figures. Lot rent is $550. We own our 2007 vehicle outright and may only have a couple of years left if we're lucky. 6% of my income is going into my 401k.

The plan for this year was to buy a home, we've been accepted into a land trust program that allows low income people like ourselves get into the housing market by selling the homes at a reduced price while maintaining ownership of the land. When you sell the house, you sell it for a reduced price to "pay it forwards".

However with the sharp raise in interest rates, even these homes are barely within our budget, so for now we're staying put and continuing to save while I work on becoming a citizen (currently legal resident), this has to be done before we can get a mortgage.

We've been approved for a loan amount of $123k @ 7.375% (as of November of last year) keeping the total monthly payment at or below $1100 with taxes and insurance. Although we live well below our means and would want to keep that in the range of $800-$900 that would put us at a home for around $100k which isn't really a thing right now.

In the meantime, I don't know what to do with money that's just sat earning $100 a month. I 100% won't need any of the money for the next 3 months, but I wouldn't want to lock up all of it for any longer than that. I'm open to locking some of that money up for a longer period of time, maybe on a annual basis, but would want to make sure that we had enough to jump on a home if the right one showed up.

I been a little foolish with risky investments and am ashamed that I've lost $2000 doing that. So it's time to get serious with no or very low risk investments.

Right now I can lock up about $30k for a few months, $10k-$15k I could lock up for a year.

Thanks for taking the time!

Edit, thanks everyone for the advice. Too many comments to reply to right now! I'll take everything into consideration.