In fairness, the Papists were also very hostile to Jews at the time, and the Jews at that time were also praying in synagogues for the death and enslavement of Gentiles, and theirs Rabbis claimed that Christ was burning in a vat of feces for all eternity. The Ultra- Orthodox Jews still to this day spit on Gentiles when they enter their neighborhoods. And they don't do any sort of work, either, but live off the state.
Luther's reaction to this, however, wasn't racial, since he used Jewish converts to make his arguments.
“The Ultra- Orthodox Jews still to this day spit on Gentiles when they enter their neighborhoods”
1. There is no such thing as “ultra-Orthodox” outside the pages of Haaretz.
2. With one exception*, I have never seen hostility, even in old city Jerusalem, against Gentiles who are modestly dressed and polite. Now, if you show up wearing short-shorts and a bikini top and expect to not get hassled at the Western Wall, then you are in for a surprise. People who would not dress like tramps in their church at home somehow think it is OK to show up where people are praying abroad dressed as tramps. It’s rude and will probably get a rude response.
* The exception being the anti-Zionist Satmar Hasidic group who are hateful to everyone, except the Imans in Iran. Of course, they are most hateful to other Jewish people.
3. Since the days of Maimonides in 1135 CE, Christianity has been deemed by basically all Jewish people an acceptable religion for Gentiles, as it certainly conforms to the Noahadic laws, accepts the Torah as true, and points towards the Mosiach, however (from the Jewish perspective) prematurely.