BANKING & FINANCE - Feb. 22, 1992

VA Raising Mortgage Rates: The Department of Veterans Affairs announced that it will increase its maximum home loan interest rate from 8% to 8.5%, effective Monday. The change is a response to a recent shift in the credit markets. The last VA rate change occurred Dec. 20, 1991, when the rate was lowered from 8.5% to 8%--the lowest the rate had been in 14 years. Also effective Monday, the VA will increase by one-half percentage point the maximum rates for graduated payment mortgages to 8.75%, home improvement loans to 10%, manufactured home loans to 11%, manufactured home lot-only loans to 10.5% and manufactured home and lot loans to 10.5%.