My OB said my baby is really low what does that mean?

Hey I am 37 weeks and 3 days pregnant. My baby dropped at 33 weeks. This is my first. My question is yesterday at my doctors appointment the doctor said the baby was really low but I was closed and not dilated at all. She sounded kinda surprised that I wasn't dilated. My question is since the baby had dropped so many weeks ago is it normal for him to be really low or do they drop lower before labor? Does this mean anything? He is head down and everything. I know his due date isn't for 2 1/2 more weeks but it feels like he is never going to come out. I have no signs whatsoever that he is coming. No Braxton Hicks, no loss of mucus plug. Nothing at all. I haven't thinned out or dilated. Thanks for any help.