I mean if you are truly down and you are not exagerating (ie you have contributed more than you actually have left) then withdrawing won't be a taxable event and you can in fact claim any loss as a deduction on your taxes (up to $3k per year and it rolls over) then you could use that cash to put a payment on a house sure. But you would also be locking in your losses.

Depends how much you want to rush home ownership.