REM occurs early on in the night as well, but it doesn't last as long. The later into the night, the longer the REM period lasts. The beginning stages are shorter or sometimes non-existent during the later phases of sleep. Remember, you can dream and lucid dream outside of the REM period. They just usually aren't as vivd/memorable/last as long.
Most people wake in the night to try and WILD/FILD/DEILD/whatnot. After several hours of sleep it is much easier to enter directly in REM. This is the main reason people do WBTB. The reason you stay awake for 1 hour (or whatever increment of time someone uses) during this, is so you aren't too tired and fall asleep normally.
Another reason some wake is to get a fresh start. Let me explain. After waking up in the night, it gives you another chance at thinking about LDing which gets LDing on your mind. Alot of times, simply thinking about LDing before bed can cause you to become lucid.
I also wake in the night for better recall. Recall is at its strongest point just after the dream. I try to set my alarm for the end of an REM cycle so I can remember as much as possible.
Hope this helped. Good Luck!
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