Yes – but what is happening to you is every bodybuilder’s dream. If your statistics are correct, you’ve gained over 10LBS (estimating your weight at over 150 lbs.) of lean body mass (LBM) while reducing more than 3% body fat (lost ~4.5LBS body fat). With this much muscle gain during body fat loss, it appears you may be fairly new to resistance training and must be taking your supplements (e.g. vitamins, pre/post training formulas).
Muscle is great to add because it helps you burn more fat, but at some point your LBM gains should dramatically slow down while your fat continues to drop. At 28% body fat you have plenty to lose (if you want to) and you probably are happy with the amount of muscle you have acquired. You can therefore reduce your calorie intake by at least 500 calories daily and body fat should start dropping faster while muscle gains slow down. If your weight plateaus, you may continue to drop calories in order to restart the process or better yet, increase daily activities and/or cardio time. Stay with this formula until you hit your goal, and you will succeed! And always remember, the lighter you are, the fewer calories your body burns during all activities. To make sure you stay on goal, use the dotFIT program. You can set your goals and create the ideal program including individualized menus, proper calorie and protein requirements, meal timing, exercises that you choose to perform, ideal supplement recommendation and coaching/feedback all the way till you reach your goal.