PPP deadline extension would help banks process more applications

How are those COVID relief payments affecting consumers?

Payments started going out within days of President Joe Biden signing the American Rescue Plan, and that’s been a big shot in the arm for consumers, said John Leer at Morning Consult, which polls Americans every day. “Consumer confidence is really on a tear. They are growing more confident at a faster rate than they have following the prior two stimulus packages.” Leer said this time around the checks are bigger and they’re getting out faster. Now, rising confidence is likely to spark more consumer spending. But Lisa Rowan at Forbes Advisor said it’s not clear how much or how fast.

Will more people be working from home once the worst of the pandemic recedes?

It’s still unclear whether remote work will remain widespread, but there is at least more data analyzing the costs and benefits of working from home. People might be saving on things like commuting and buying clothes, but they’re also finding that in order to make long-term remote work feasible, they’ll have to upgrade their living spaces. And that cost could outweigh savings. Chris Stanton, a Harvard business professor, said even a minor increase in working from home after the pandemic could add up to billions of dollars a year for workers.

I’m hearing a lot about interest rates. Is it getting more expensive to borrow money?

Expectations of higher inflation as the economy rebounds have investors demanding higher yields to compensate. In turn, the recent surge in bond yields is pushing up the interest rates consumers pay on mortgages and other loans. Economist Scott Hoyt with Moody’s Analytics said rising rates could dampen demand for housing a little and refinancing a little more. Other kinds of consumer spending are less likely to be affected. Interest on auto loans and credit cards are pegged to shorter-term rates, which haven’t been rising as much.