Can't have the Spanish monarchy appear to disobey the pope, now can we? Stop that Inquisition right now! Oh, uh, never mind, jolly good. As you were, continue expelling Jews.
You're putting forth a half truth. Pope Sixtus IV and Ferdinand sound just as cozy as Phillip of France and Pope Clement. Monarchs pulled the strings of the church and not vice versa with some frequency at times, it appears.
To flesh out the half-truth and provide the rest of the story: The Tribunal of the Holy Office of the Inquisition, commonly known as the Spanish Inquisition, was a tribunal established in 1478 by Catholic Monarchs Ferdinand II of Aragon and Isabella I of Castile. It was intended to maintain Catholic orthodoxy in their kingdoms, and to replace the medieval inquisition which was under papal control. The Inquisition worked in large part to ensure the orthodoxy of recent converts, especially Jews, Muslims and others. Various motives have been proposed for the monarchs' decision to found the Inquisition, such as increasing political authority, weakening opposition, suppressing conversos, and profiting from confiscation of the property of convicted heretics. The new body was under the direct control of the Spanish monarchy. It was not definitively abolished until 1834, during the reign of Isabella II.
The monarchs decided to introduce the Inquisition to Castile to discover and punish crypto-Jews, and requested the Pope's assent. Ferdinand II of Aragon pressured Pope Sixtus IV to agree to an Inquisition controlled by the monarchy by threatening to withdraw military support at a time when the Turks were a threat to Rome. The Pope issued a bull to stop the Inquisition but was pressured into withdrawing it. On November 1, 1478, Pope Sixtus IV published the Papal bull, Exigit Sinceras Devotionis Affectus, through which the Inquisition was established in the Kingdom of Castile. The bull also gave the monarchs exclusive authority to name the inquisitors. The first two inquisitors, Miguel de Morillo and Juan de San Martín were not named, however, until two years later, on September 27, 1481 in Medina del Campo.
The first Auto de Fe was held in Seville on February 6, 1481: six people were burned alive. From there, the Inquisition grew rapidly in the Kingdom of Castile. By 1492, tribunals existed in eight Castilian cities: Ávila, Córdoba, Jaén, Medina del Campo, Segovia, Sigüenza, Toledo, and Valladolid.
Sixtus IV promulgated a new bull categorically prohibiting the Inquisition's extension to Aragon, affirming that,
many true and faithful Christians, because of the testimony of enemies, rivals, slaves and other low people—and still less appropriate—without tests of any kind, have been locked up in secular prisons, tortured and condemned like relapsed heretics, deprived of their goods and properties, and given over to the secular arm to be executed, at great danger to their souls, giving a pernicious example and causing scandal to many.
In 1483, Jews were expelled from all of Andalusia. Ferdinand pressured the Pope to promulgate a new bull. He did so on October 17, 1483, naming Tomás de Torquemada Inquisidor General of Aragón, Valencia and Catalonia. Torquemada quickly established procedures for the Inquisition. A new court would be announced with a thirty day grace period for confessions and the gathering of accusations by neighbors. Evidence that was used to identify a crypto-Jew included the absence of chimney smoke on Saturdays (a sign the family might secretly be honoring the Sabbath) or the buying of many vegetables before Passover or the purchase of meat from a converted butcher. The court employed physical torture to extract confessions. Crypto-Jews were allowed to confess and do penance, although those who relapsed were burned at the stake.
In 1484 Pope Innocent VIII attempted to allow appeals to Rome against the Inquisition, but Ferdinand in December 1484 and again in 1509 decreed death and confiscation for anyone trying to make use of such procedures without royal permission. With this, the Inquisition became the only institution that held authority across all the realms of the Spanish monarchy, and, in all of them, a useful mechanism at the service of the crown. However, the cities of Aragón continued resisting, and even saw revolt, as in Teruel from 1484 to 1485. However, the murder of Inquisidor Pedro Arbués in Zaragoza on September 15, 1485, caused public opinion to turn against the conversos and in favor of the Inquisition. In Aragón, the Inquisitorial courts were focused specifically on members of the powerful converso minority, ending their influence in the Aragonese administration.
The Inquisition was extremely active between 1480 and 1530. Different sources give different estimates of the number of trials and executions in this period; Henry Kamen estimates about 2,000 executed, based on the documentation of the Autos de Fé, the great majority being conversos of Jewish origin. He offers striking statistics: 91.6% of those judged in Valencia between 1484 and 1530 and 99.3% of those judged in Barcelona between 1484 and 1505 were of Jewish origin. "In 1498 the pope was still trying to...gain acceptance for his own attitude towards the New Christians, which was generally more moderate than that of the Inquisition and the local rulers."
These were local Catholic rulers. This is the environment that was present to an extent across all of Europe, and was the environment into which Martin Luther was born.
As I said before, anti-Semitism didn't just fall out of the sky the day that Luther nailed his 95 theses to the door of the Castle Church in Wittenberg.
Source: http://wapedia.mobi/en/Spanish_Inquisition
Your first mistake is in accepting google search information as a substitute for a proper education in Church and European history.
Ferdinand had received wide support as the monarch responsible for finally driving Islam out of Western Europe by force of arms. His campaigns were brutal and bloody. During the preceding 700 years a culture had developed among the Conquistadors that the foes of the Reconquista, or war of liberation, were not only not human because they lacked a soul, but were personally responsible for that because they had given their soul to the equivalent of the devil. At a time in history when mercy was a rare commodity even among Christians, there was no shown to the Muslim occupiers. Animal deserved no mercy and the Godless even less. This culture would later be on display in the conquest of the pagan peoples of the New World.
The Reconquista made Ferdinand and his predecessors very influential within Europe. The fall of Grenada posed a problem for Ferdinand. Short of Crossing into North Africa where he would have been soundly defeated he had run out of lands to liberate from Islam. He no longer had a "Christian" reason to expect grants, contributions and the forgiveness of loans from the Crowned heads of Europe in support of hie Holy Crusade. The purging the reconquered lands of the Godless inhabitants was a way to perpetuate his dynasty and in the process convert more property to the royal coffers. All that was asked of the Church was to make a determination if any of the accused were Catholic. All accused were given an opportunity to convert and most did.
"and was the environment into which Martin Luther was born."
Luther's wallowing in antisemitism only demonstrates that he lacked any divine inspiration. Like Ferdinand, Luther was using antisemitism for his own personal benefit. The Holy Spirit would not place new messages into such a dirty vessel.