The U.S. mortgage rate has experienced a significant decline, reaching its lowest level in more than three years.

As of Jan. 22, the 15-year mortgage rate increased from 5.38% to 5.44%, which is less than the 6.16% it reached last year, according to Freddie Mac. Thirty-year mortgages rose to 6.09%, when a year ago, it was 6.96%.

This current state has proved beneficial for both home buyers and owners because there has been a noticeable increase in purchasing applications and refinance activity. Freddie Mac predicts a solid spring sales season.

The recent drop in rates occurred after President Donald Trump announced the government’s decision to purchase $200 billion worth of bonds. According to the Mortgage Bankers Association, home loan applications rose by 16%, with an accounted 60% increase in total.

“With mortgage rates much lower than a year ago and edging closer to 6%, MBA expects strong interest from homeowners seeking a refinance and would-be buyers stepping off the sidelines,” Mortgage Bankers Association CEO Bob Broeksmit told Associated Press.

It is recommended for homeowners to have a 15-year mortgage plan, rather than a 30-year mortgage, because economists have predicted the 30-year plan’s rate will remain above 6%, which is double the rate reported six years ago.

The Trump administration had proposed a 50-year mortgage plan that would lower monthly payments for homebuyers. Economists are skeptical of the rapid debt increase that could occur due to this plan.

“A 50- year mortgage basically means you’re paying mostly interest for decades before you really own your home,” Michael Ryan, a finance expert, told Newsweek.

“Most people sell their homes long before 50 years, so they won’t make much money back when they sell.”

The 50-year mortgage project was halted in January due to the growing uncertainty from economists.