Since this bike has 26" wheels (traditional mtb size), most racks should fit fine, even with fenders. My commuting bike has 27" wheels plus fenders, and a rack fits fine over that. The outer diameter of 27x1 1/4" tires is larger than your 26" balloon tires.


That said, if your measurement of 14" from the mounting point to the top of the fender is correct, you might not have space. On my aforementioned commute bike, it was only 13" from mounting point to top of fender, but my bike has different dropout design compared to yours, and the mounting eyelet is further away from the axle of the wheel.

I measured a few racks in my garage and they all had 13.5 to 13.7" from mounting hole to the underside of the rack. So, you may want to measure your pretty hopeful rack in-person before you buy it.