Energies, wave functions of the quadrupole and hexadecapole states, B(Eλ) and B(M1) values are calculated within the quasiparticle-phonon nuclear model in a number of well-deformed even-even nuclei in the rare earth region. Reasonably good overall agreement with available experimental data is obtained. Specific properties of the Kπ = 0+ and two-gamma vibrational states are discussed. The distributions of the M1 strength is studied. It is shown that the M1 strength is more strongly fragmented in Er isotopes compared to Gd and Dy isotopes. The fragmentation of one- and two-phonon states is investigated. The fragmentation of one-phonon states strongly affects the Eλ and M1 strength distribution at energies above 2.5–3.0 MeV. The wave functions in the energy range 2–4 MeV contain specific nuclear structure information and these states cannot be treated as chaotic.