In the early hours of Tuesday morning a gang of between 15 and 20 attacked the flat contained in the bottom storey of a house at Aubrey Street in the predominantly loyalist enclave.
The mob threatened to kill her and her Catholic friends. The woman, originally from England and who does not wish to be named had moved into the dwelling only around a week ago.
The woman said windows in the house were being smashed as she was on the phone to the police. The resident also said she was trapped outside the flat but managed to get back inside. She told her friends to remain upstairs inside the flat, even though they questioned this, because it was the safer option. The flat owner and her friends then locked themselves in the bathroom until police arrived.
Tensions in the district have been rife in recent months with ongoing incidents between Fountain residents and nationalists attacking from outside the estate.
The scene of this attack, at Aubrey Street, borders Wapping Lane, an access route to the estate regularly used by nationalist attackers.
Ulster Unionist Party Alderman, Mary Hamilton said: "I totally, totally condemn this. I do not understand why people are attacking each other, no matter what religion they are."
Mrs Hamilton said she is currently working with her party leader, Sir Reg Empey, and in conjunction with the PSNI on a project to address problems within the Fountain.
Londonderry SDLP MLA, Pat Ramsey, himself forced to leave his home in the Bogside after repeated attacks by dissident republicans also condemned the attack.
He said: " This is a sickening attack on the home of a Catholic woman. It's a sad indictment of our society at the moment when attacks against minorities seem to be on the increase.
"This type of attack-and I condemn all attacks-is an attack on the democracy of this country and the right that people have to live in peace.
"It's only luck when a group of up to 20 men, according to the police, attack a woman's house and she isn't injured. This could have had graver consequences.
"This attack is further testament to the inability of the DUP and Sinn Fein to come up with Cohesion, Sharing and Integration Strategy on a shared future. We have had sectarian tensions in the Fountain for too long.
"Martin McGuinness has said the shared future strategy is almost near completion. I hope he comes back to Derry and tells that to the lady whose home was attacked by sectarian thugs."
A spokesperson for the PSNI said:" Anyone who was in the area around 1.30am and could further help police with their enquiries is asked to contact Strand Road (Londonderry) station on 08456008000 or the Crimestoppers charity anonymously on freephone 0800555111.
Director of Londonderry's Peace and Reconciliation Group, Michael Doherty said: "If this attack is sectarian, it is to be condemned, if it is not sectarian, it is still to be condemned.
"It is outrageous in this day and age that anyone is forced out of their home. That is is to be condemned out rightly and illustrates that people in the rest of the community need to start thinking how to tackle this. If it is wrong in the Fountain it is wrong elsewhere."