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Remember that a home is a liability, and in the current market is not a good investment unless you have a long time frame for ownership. The cost of buying, moving out, moving in, is all very costly and can only pay off if you are going to hold for quite awhile. You could easily lose a lot of your savings if you are not in a position to hold for awhile. Ultimately you have to consider things such as how stable your employment situation is, and if you lose your job, how easy would it be for you to find a new one with similar pay which would permit you to pay your debt service. Basically, how much risk can you afford?

If you are married in a two-income household, for example, there is a greater resilience to shocks in employment status, since presumably it's less likely for both of you to be unemployed at the same time.

Obviously, the local real estate market in which you are planning to buy will also impact on the level of risk. If the area has a good economy that is not particularly jeopardized by the current changes in consumer habits or credit crisis, or has home prices that are not still in freefall due to a huge inventory surplus, then buying a home will be less risky. Just remember a home is a liability, and stocks will most likely lead coming out of a recession. Unless you are really planning to put down roots right now, it may not be the best place to put your money.