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|**Secondary Market Report** | **December 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       
                                 Dec'98                          Nov'98 
                        ------------------------        ------------------------
                        Average         Average         Average         Average 
                         Price          Yield 1/         Price          Yield 1/                
                        -------         --------        -------         --------        
Northeast               $ 99.00          7.13%             *               *
Middle Atlantic         $101.50          6.80%             *               *
Southeast               $ 99.73          7.04%          $100.00          7.00%
North Central           $ 99.88          7.02%          $ 99.72          7.04%
Southwest               $100.00          7.00%          $100.00          7.00%
West                    $ 99.53          7.06%          $ 98.97          7.14%
                                                
United States           $ 99.83          7.02%          $ 99.47          7.07%
                                                

                                                        
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   
1998    High/Low        99.83/98.25      7.17/ 6.53        7.25/ 6.50   



Data as of:  December 1, 1998                           HQE:  12-21-98

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