Looks like you're dropping as much muscle as fat, but I'm far from being an expert.
Starting at 175 lbs and 15.5% BF, a 3% fat loss should put you at 170 lbs, not 161. Right? I calculated you lost 7 lbs fat and 7 lbs muscle. That's not a trade-off I'd be willing to take. Muscle is just too hard for me to gain.
175 @ 15.5% BF = 27 lbs fat
161 @ 12.5% BF = 20 lbs fat
I need to cut some myself, but I don't want to lose any size.
I'm 188 lbs with probably 20% BF (pathetic, I know).