Water spreads through wicking, or wetting whatever it touches. Then the water in the new place will wick out to other new places, so yes, it will continue to spread, and that will cause another problem which is mold. Mold can cause serious health problems even when it's behind a wall because it contaminates the air. If the water has been behind the wall for a long time, you probably already have a mold problem. You need to have a contractor check it out.
So does that mean it will travel under my floor boards and around my house or just in one room? And will it burst my pipes?
Water anywhere is BAD! Get someone to stop it!
water flows and seeps
however you look at it
youll be getting it fixed
EDIT
Beth
depends on whats actually happening
but yeah
a slow leak can become a bigger leak
damp will rot and destroy timber and even create problems with masonry
how far it travels depends on the structure
you simply cannot just ignore it