You don't say which version of Fedora you're using, which is a crucial piece of information.
For Fedora 16, this is in the updates repo, so the command above should work fine; that suggests, though doesn't prove, that you're on an earlier version of Fedora.
I've looked in the updates repo for F15 (at my local mirror) and that only has java-1.6.0-openjdk. So it looks like 1.7.0 didn't come out soon enough for F15 to benefit from it (indeed, there was some discussion in the run-up to F16 about whether or how to get 1.7.0 into that release, you can read it in this thread if you want to).
So I definitely don't expect to find 1.7.0 in F14 and earlier, since those versions are now out-of-support.
If you're F15, you might be able to benefit from a custom build in someone else's repo, but you'll have to to let us know what version of Fedora you're on. F14 and earlier, I fear you're simply out of luck - and you need to upgrade anyway.
Edit: You're using Fedora 7. Now I can't say for sure that noone's keeping up-to-date packages for F7 in some odd repository somewhere, but it seems extremely unlikely to me.
May I repeat my warning that F7 is wildly out of date, and not suitable for deploying anything on in 2012? You can't easily upgrade it now (because modern Fedora won't upgrade anything more than two revs out of date, so you'll have to go 7-9-11-13-15-16); if you decide to stay on Fedora, you need to be resigned to upgrades at least once a year. Failing that, use a server-class OS - CentOS will be most suitable for you, being a Fedora user, but Ubuntu/Debian/SuSE/etc. all have their long-term support offerings too. Good luck.