The soft hair that covered your baby's body while she was growing (languo) is now almost all gone. She is now in the final stages of development and her lungs are now the only organs left to mature fully. Your baby is now considered full term and if you go into labour your doctor or midwife will let it continue naturally where possible.
Since baby has dropped into position, you'll probably be finding it easier to breathe as your diaphragm has less pressure on it. Enjoy these last days you have together as a couple or a smaller family. Make sure mum gets lots of pampering because she'll probably be feeling tired and frustrated by now. It's also time for her to put her feet and rest before the really hard work begins.
It's important to be aware of the difference between false labour (Braxton Hicks) and real contractions. False contractions usually disappear if you get up and move around, but real labour contractions become more frequent and intense. Usually, the waters break towards the end of the first stage of labour. In about 15% of pregnancies, the waters break before labour. 'Waters breaking' is the term used to describe the membranes of the amniotic sac rupturing and it is a clear sign that labour is happening or is about to happen.