The Veterans Administration said it was raising...

The Veterans Administration said it was raising its maximum interest rate for federally backed VA home mortgages by one-half percentage point to 10.5%. VA spokeswoman Pam Siciliano said the agency was making the change, which will take effect today, to reflect recent increases in interest rates in financial markets. The latest change is the fifth in 1988. The VA said that effective today a variety of other rates will also rise by one-half percentage point: Graduated payment mortgages will increase to 10.75%; home improvement loans will rise to 12%, and loans for mobile homes will increase to 13%.