Kitchen faucet makes banging noise, stops flowing

We have a kitchen faucet that (sometimes, not always) makes a bang noise and (sometimes, not always) stops flowing. When this happens, turning off the faucet and turning it back on will generally restore the flow. There is one outdoor spigot located near the kitchen that will make a similar bang sound time on occasion. Does this sound like a water hammer problem or something else? Could it also be a faucet needing replacement?

 

LOOSE WASHER or Bibb Screw fell down the supply connection