Form: 10-K/A

Annual report pursuant to Section 13 and 15(d)

April 15, 1999

CONSENT OF INDEPENDENT AUDITORS

Published on April 15, 1999



Exhibit 23.1







INDEPENDENT AUDITORS' CONSENT


The Board of Directors
Dynex Capital, Inc.



We consent to the incorporation by reference in Registration Statements
Nos. 333-22859, 333-10783, 333-10587 and 333-35769 of Dynex Capital, Inc. on
Form S-3 and Registration Statement No. 333-32663 of Dynex Capital, Inc. on Form
S-8 of our report dated March 26, 1999 appearing in the Annual Report on Form
10-K/A of Dynex Capital, Inc. for the year ended December 31, 1998.


DELOITTE & TOUCHE LLP


Richmond, Virginia
April 15, 1999