Form: S-8

Initial registration statement for securities to be offered to employees pursuant to employee benefit plans

August 1, 1997

CONSENTS OF EXPERTS AND COUNSEL

Published on August 1, 1997



Exhibit 23.1






Consent of Independent Auditors






The Board of Directors
Dynex Capital, Inc.


We consent to the use of our reports incorporated by reference in the
registration statement on Form S-8 of Dynex Capital, Inc. and to the reference
to our firm under the heading "Experts" in the Statement of Information for
Participants.


KPMG PEAT MARWICK LLP




Richmond, Virginia
July 28, 1997