Agree times 10.
At 29 you have 35 years to build 401k, this is just a speed bump at your age.
I'm 58, and saw losses, but actually buying in at higher rate with the market being so low., especially with my company matching dollar for dollar up to to 4pct,,, if your company offers a match,,, keep adding
I puled some recent gains out of my aggressive funds and moved to money market, only because of the upcoming election in November,,, the market hates uncertainty, , and elections do that.
If you have to scrape for a down payment your not in a position to pull off that transaction, at least right now.
Not that I listen to all of Dave Ramsey advice ( he's pretty extreme) but his principles are solid. ( if you have never listed to him, order his total money makeover cd)
1. Clear all credit card debt , student loans and vehicle loans and cut up the credit card
2. 6 months emergency savings,, better said,, enough to pay ALL of your bills for 6 months
3. Mortgage paid off, or no more than a 15 year fixed
4. College fund for the kids
If you got all this done, ,, real estate would be my next step,, again your 29..... you got some time to build wealth, don't panic over the down turn,,,, market ALWAYS comes back