Looks like you've got your mudguard stay mounted to the rearmost hole on the pannier rack strut?
If you mount the the mudguard stays to the fork mount you're currently using the rack, then mount the rack above the QR (poss with the aid of a spacer to help clearance) it'll push the front of the rack struts up and they'll be more horizontal.
Sorry that's a bit of a complicated explanation but it's how I mounted my rack to solve a similar problem. I'd take photos of my setup but the bike's in bits.
Nah they'll go:
Looks like you've got your mudguard stay mounted to the rearmost hole on the pannier rack strut?
If you mount the the mudguard stays to the fork mount you're currently using the rack, then mount the rack above the QR (poss with the aid of a spacer to help clearance) it'll push the front of the rack struts up and they'll be more horizontal.
Sorry that's a bit of a complicated explanation but it's how I mounted my rack to solve a similar problem. I'd take photos of my setup but the bike's in bits.