Prime Minister Stephen Harper said Wednesday Ottawa is closely watching developments in the still-hot housing market, but there’s no need for another intervention.

“I’m not saying I’m unconcerned. We are watching it. We’re not planning to take any immediate action,” Harper told reporters after an event in Mississauga, Ont.

“We continue to watch the housing market and the lending and borrowing situation very carefully,” he said.

Prime Minister made the remarks as Canada’s big banks made fresh cuts to mortgage lending rates, with the Bank of Montreal slicing its 5-year, fixed rate to 2.79 per cent.

That should help rev up home sales across the country this spring, even as buyers confront affordability constraints in big centres — namely Vancouver and Toronto.

There are also concerns though that Canadians have piled on too much debt and that some pockets of the housing market have become “overheated.