"Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers"

This quote by Franklin Raines highlights several crucial economic ideas relating to rate of interest, home mortgage refinancing, and consumer spending. Initially, Raines suggests that rate of interest will stay low for the foreseeable future, with particular emphasis on home mortgage rates staying listed below seven percent. This suggests a favorable loaning environment for customers and property owners, as lower rates of interest usually make loans and home mortgages more economical.

In the context of home mortgages, when rates of interest are low, numerous property owners are encouraged to refinance their existing home loans. Refinancing can enable homeowners to secure a lower rates of interest than what they initially had on their mortgage, thus lowering regular monthly payments and the overall interest paid over the life of the loan. This procedure can result in considerable savings for homes, maximizing disposable income.

Raines describes this phenomenon as a "re-finance boom", showing a rise in the variety of property owners benefiting from the low rates to refinance their mortgages. This boom can have broader economic implications. When homeowners decrease their month-to-month home loan payments, they effectively have more money available to invest in other items and services. This boost in disposable earnings can promote consumer costs, which is a major part of financial development.

Furthermore, increased customer spending can have a multiplier effect, enhancing need across numerous sectors and possibly resulting in job production and economic expansion. However, it's crucial to keep in mind that while low rates of interest generally stimulate economic activity, there are prospective drawbacks. For instance, prolonged durations of low rates can encourage excessive borrowing and risk-taking, which might present long-term financial stability concerns.

In summary, Raines's declaration catches a minute in the financial cycle where favorable interest rates are driving a wave of refinancing, consequently injecting more cash into consumers' pockets and possibly stimulating wider economic growth.