Can your clothes feel loose but the weight on the scale is the same thing?

Yes
Sometimes it's the first thing to change, particularly if you're exercising more.

Don't they say muscle weighs more so some of your fat has possibly been converted to muscle ?

muscle is more dense than fat, so lb of muscle is going to be a smaller "thing" than lb fat. But they both weigh a lb! (Like ton of lead or ton of feathers). At one stage when I was doing a lot of extra exercise the scale went up a bit but my inches came down.