Time sensitive: Laugavegur trail

Weather wise: expect stormy winds today & tomorrow. http://en.vedur.is/ A couple of tents will probably see Walhalla today or tomorrow :-)

The trail is way-marked with sticks, and the biggest rivers can be crossed using a bridge. You'll have no problem. The plateau around Hrafntinnusker is still very snowy (bring snow pegs if you want to camp next to the hut :-). If not, you'll have to walk in one day from Landmannalaugar to/from Alftavatn (expect 8h, taking the snow into account).
BTW, the high snow levels are exceptional this year. As the trail is one of the busiest in Europe, hikers will by now have bulldozed a trail through the snow (read: compact snow + path).
I'd still bring a GPS, in case it fogs up at the plateau.

Other sections of the trail can be muddy & wet, due the late snow melt. You'll have now problem with fording rivers.

Wim

edit: typo

At Hrafntinnusker, there were a lot of large rocks that people used to secure the tents. The site had been used enough that camps where dug out several feet below the top surface for wind shelter. When we went in early July the stream crossings where knee to at the most mid-thigh. I would expect the levels to be higher. Due to the snow melt, I would keep an eye out on the snow arches over the streambeds/ravines. Have fun!

So we got in on the 14th and I guess they were having a freak storm that came in Wednesday evening. 30 MPH winds with sleet at Landmannalaugar. The folks that work there said they didn’t want people going up because it was all ice and blinding snow/sleet unless you had ski goggles, GPS and 4 season tents. They had their search and rescue team up there dragging people down as we were contemplating going up. The storm wasn’t supposed to clear until Friday afternoon and that screwed up our plans so we didn’t wind up going. The winds were wreaking havoc on the 4 season tents at Landmannalaugar and laughed at our Contrail and Gatewood. http://www.maderism.com/2015/08/iceland-august-2015-part-one.html

Better safe than injured or dead, it is pretty easy to get lost on the first two legs of that trail. 30 mph stormy weather is not fun to hike in. I hope that you enjoyed the rest of Iceland.

We had an amazing time. We wound up hiking from Skogarfoss towards Thorsmork and back. Beautiful hike and it was the only day it didn't rain. I'll be back.