You can think of water being a better nucleophile because the pKa of hydronium (conjugate acid of water) is -1.7 or 0, depending on who you ask. Whereas the pKa of HBr is -8 or -9. However, as stated above, nucleophilicty/electrophilicity is determined experimentally and the stronger base (weaker conjugate acid) is not always the better nucleophile. If you get stuck on an exam though, this kind of analysis is helpful and you'll probably get the answer correct more often than not.
Otherwise you can think of it this way. Rate depends on concentrations of reacting species. In the flask, once the bromonium intermediate is formed, you have 2 reactions competing. Bromide adding or water adding. Molarity of water, when in aqueous solution, is ~55M. Water wins pretty much by "getting there faster." There is water everywhere, its solvating all ions and when an opportunity arises water will attack.
So its not really the case of better or worse nucleophile, except for the fact that water CAN act as a nucleophile whereas something like carbon tetrachloride cannot and therefore you will get addition of bromide to the bromonium intermediate if CCl4 is used as solvent.