Need plumbing help

I recently moved a bunch of furniture from a couple of rooms in my house and I noticed the baseboards were discolored. So I took them off and they had obviously soaked in a lot of moisture. Turns out all the baseboards along the back of the house and halfway up one of the sides are like that. There's also a little mold in there.

The water enters the house about knee high in the back corner of the house and runs along the west side of the house to the bathroom and kitchen. All the baseboards on that side of the house are clean. On the east side there is a spigot and all the baseboards from that spigot to the corner where the water enters the house are discolored. So I figured the water pipe entered the house and ran along the wall and was leaking.

I cut into the wall where the water enters the house and this is what I find. It comes in and makes a 90* turn downward and goes down into the foundation in the pictures shown. I know nothing about plumbing but does this mean the pipe goes under the concrete foundation, through the ground and then back up through and foundation and into the wall where that spigot comes out of on the east side of the house?

Frustrated trying to figure out how this moisture is getting inside. Think the foundation could be cracked and water is leaking in? It's an older house built in 1958.

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