For about a year now I have heard a heavy knock near the right rear strut when hitting small bumps on my 2001 Camry. I slid under and forund that when I pushed upwards a bit, a heavy knock (like a small hammer on the frame) would occur at he junction of the stabilizer bar and the stablizer bar link (the small bar that attaches to the strut.) When disconnecting the juction, the knock disappeared.

The issue seems to be the lower joint of the stabilizer link. You can feel the knock while holding the stabilizer or the link.
Can a bad lower stabilizer link cause such an noise?

Thanks for your help.

Yes, it's possible the link is bad. The more common problem is bad inner bushings that are inboard of the stabilizer bar link. Make sure the movement/noise is cause by play in the link and not the inner bushing(s).