This has nothing to do with IIS7 Express and everything to do with the fact that you’re using loopback traffic.
Ref: https://www.fiddlerbook.com/fiddler/help/hookup.asp#Q-LocalTraffic
Click Rules > Customize Rules.
Update your Rules file like so:
static function OnBeforeRequest(oSession:Fiddler.Session)
{
if (oSession.HostnameIs("MYAPP")) { oSession.host = "localhost:portnumber"; }
}
Then, just visit http://myapp in your browser.
Or use the address http://localhost.fiddler/ and Fiddler will use the hostname localhost instead of converting to an IP address.