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|**Secondary Market Report** | **September 1998**
|--------------------------- | ------------------



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### TABLE 1
Net Prices and Average Yields for HUD-Insured
New Home Mortgages (Section 203) Immediate Delivery
Transactions 30-year Maturity - Minimum Downpayment



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`7.00%                   7.00%               
                          Mortgages               Mortgages             
                           Sep'98                  Aug'98               
                        
                        Average Average         Average Average 
                        Price   Yield 1/        Price   Yield 1/                
                        ------  ------          ------  ------
Northeast              $ 99.82  7.02%         $100.00   7.00%   
Middle Atlantic          99.20  7.11%             *       *     
Southeast               100.05  6.99%           99.63   7.05%   
North Central            99.99  7.00%           99.75   7.03%   
Southwest               100.00  7.00%           99.98   7.00%   
West                     99.52  7.06%           99.26   7.10%   
                                                        
United States           $99.75  7.03%           $99.63  7.05%   
        
                                                        
1/-Gross yield to investors, without allowance for                                                      
   servicing costs based on prepayment of the mortgage                                                  
   at the end of 12 years.                                      
                                                         
* Dominant rate not quoted by respondents in region.                                            
                                                        
                                        United States           
                        -----------------------------------------------------   
                           Price                   Yield           Mtg. Rate    
                        ---- $ ----             ---- % ----       ---- % ----   
1984    High/Low        97.60/95.00             15.00/12.90       14.00/13.00           
1985    High/Low        98.30/95.50             13.43/11.28       13.00/10.50           
1986    High/Low        99.40/96.22             10.78/ 9.26       10.50/ 9.50           
1987    High/Low        98.54/95.42             11.22/ 8.79       10.50/ 8.50           
1988    High/Low        99.49/96.99             10.84/ 9.86       10.50/ 9.50           
1989    High/Low        99.65/97.01             11.16/ 9.61       11.00/ 9.50           
1990    High/Low        99.25/97.94             10.75/ 9.71       10.50/ 9.50           
1991    High/Low        99.57/98.53              9.71/ 8.69        9.50/ 8.50           
1992    High/Low        99.60/97.54              8.85/ 8.06        8.50/ 8.00           
1993    High/Low        99.95/99.13              8.12/ 7.02        8.00/ 7.00           
1994    High/Low        99.88/98.44              9.53/ 7.05        9.50/ 7.00           
1995    High/Low        99.97/99.18              9.54/ 7.51        9.50/ 7.50           
1996    High/Low        100.00/99.14             8.58/ 7.11        8.50/ 7.00           
1997    High/Low        99.91/99.20              8.56/ 7.51        8.50/ 7.50           




Data as of:  September 1, 1998                                  HQE:  09-25-98

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