Criteria to proceed for the prostate biopsy are;
1) High PSA; more than 4.
2) Ratio of free PSA and PSA
3) Digital rectal examination (DRE) findings
4) Trans rectal ultrasound (TRU) findings.
In your case, if there was any abnormal finding on DRE, a trans-rectal US should have been done to confirm the DRE finding. I feel that urologist was not much convinced about that abnormal finding himself, so advised for the free PSA and did no get the TRU.
With PSA decreasing, you may get the ultrasound and if it comes back to normal, you may not need biopsy.
Please feel free for your follow up questions.
I would be happy to assist you further, if you need any more information.