So, the previous owners decided to pour an extra concrete slab patio, and when doing so, embed some galvanized pipe for extending the hose bib within it.  Whenever we ran the hose, even when one end was stopped, water still sounded like it was running. 

Pretty sure the galvanized pipe was broken underneath.  Soaking water against your foundation is never good and, as a bonus, as the slab settles in the ground, it was bringing the pipe (attached to our house) and the house brick down with it. 

Today, we cut that pipe and reattached a regular hose. 

When the pipe was cut, the hose bib jumped up like an inch. That’s how much the slab was pulling it down.