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|**Secondary Market Report** | **November 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%                           6.50%  
                                Mortgages                       Mortgages       
                                 Nov'98                          Oct'98 
                        ---------       ---------       ---------       --------
                        Average         Average         Average         Average 
                         Price          Yield 1/         Price          Yield 1/                
                        -------         --------        -------         --------        
Northeast                  *               *               *               *    
Middle Atlantic            *               *             $ 98.75          6.63% 
Southeast               $100.00          7.00%           $100.04          6.50% 
North Central           $ 99.72          7.04%           $100.08          6.49% 
Southwest               $100.00          7.00%           $100.00          6.50% 
West                    $ 98.97          7.14%           $ 99.68          6.54% 
                                                        
United States           $ 99.47          7.07%           $ 99.78          6.53% 
                                                        
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:  November 1, 1998                           HQE:  11-24-98

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