The number of mortgage loan applications in the United States recorded a new decline last week for the second consecutive time, but at a slower pace, with increased demand for riskier adjustable-rate mortgages as homebuyers seek good deals, according to data released Wednesday by the Mortgage Bankers Association.

The composite market index measuring mortgage loan application volume fell by 4.7% on a seasonally adjusted basis for the week ending October 3, compared to a 12.7% decline the previous week.

The refinance index also dropped by 8% after a 12.7% decline the week before.

The purchase index declined by 1%, the same rate as the previous week, according to the Mortgage Bankers Association survey.

Meanwhile, the average interest rate on 30-year fixed-rate mortgages fell to 6.43% after rising to 6.46% the previous week.

Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association, said, “With fixed-rate mortgage prices remaining largely unchanged last week, overall refinance application activity declined, except for a modest increase in refinance applications from the Federal Housing Administration program.”