The VA dropped its mortgage rate again.

The Veterans Administration said it is lowering its maximum interest rate on home mortgages to 11.5% from 12%, the lowest in more than two years. The change, effective today, is the second decrease in less than three weeks and the third this year. The rate dropped to 12% from 12.5% on May 21. The rate last dropped as low as 11.5% on May 9, 1983, but it stayed there only one month. The last time it was that low for a sustained period was from October, 1979, to February, 1980.