Latest in Mortgage News: BoC Sees Early Signs of Housing Overheating, but Will Keep Rates Low for Now

The Bank of Canada has committed to keeping its policy interest rate at its "effective lower bound" until economic slack is absorbed. It has also reduced its bond-buying program, which has helped keep fixed rates lower over the past year, due to its aversion to owning half or more of the outstanding stock of bonds due to the potential impacts on market functioning. Macklem commented on growing signs of overheating in the country's housing markets, but noted that the Bank is watching the situation closely and is not yet critical. Fixed rates have continued to rise, with TD Bank becoming the first Big 6 bank to raise their 5-year fixed rates and Canada's 5-year bond yield closing at a near-12-month high of 0.95%. Mortgage Professionals Canada has reached its 13,000-member milestone, meaning it has a stronger representative voice with regulators and governments.