I suggest that you spend this semester getting involved on campus and meeting people. You want to have a great college experience (whether that means you eventually join a fraternity or not), and you want it to start right now. If you are involved on campus, you are more likely to meet guys in fraternities and get a feel for what they're like, and vice versa. A rush party (especially if there's drinking) is a difficult place to really get to know people.
If, you still want to go through rush in the fall, you should. It stinks to not get a bid, but don't let it get you down. I would take the rush chair at his word and move on from there. It sounds like you didn't really take a look at every house, and I would suggest doing that. It might be a good thing that you didn't get a bid because you might realize that this isn't the right fraternity for you, after all.
Right now, focus on getting involved on campus, keeping your grades up, and meeting people. If you do those things, I think things will fall into place for you.
Good luck and let us know what happens.
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