More often than not LIBOR will run close to the FFR, so I expect the current spread will shrink if/when the Fed eases. I doubt the current spread will remain for the long term, in any event.

As for mortgage rates close 10%, that would require a margin of 4.5 on the 6 month LIBOR. I suppose there may be margins out there like this but i believe it’s far more common to see margins in the 2.0 range, which equates to an interest rate of about 7.4% today. Big difference.