Romans 3:31 is a transitional point between Paul’s argument in chapter 3 and the illustrations he provides from Abraham’s life in chapter 4. Chapter 4 illustrates the points he makes in chapter 3. The term “law” in verse 31 refers to the entire OT, the teachings regarding the sinful condition of man and the redemption found, through faith, in Christ Jesus. That can be easily demonstrated by the context. Paul quotes several passages, mainly from Psalms and refers to them as law:
9 What then? Are we better than they? Not at all; for we have already charged that both Jews and Greeks are all under sin;
10 as it is written, "THERE IS NONE RIGHTEOUS, NOT EVEN ONE;....
19 ¶ Now we know that whatever the Law says, it speaks to those who are under the Law, so that every mouth may be closed and all the world may become accountable to God;
Paul says that the whole world is condemned by the testimony of the law. He also says that the righteousness of God apart from the law has been manifested. The law and the prophets testify that righteousness is attained by faith:
21 But now apart from the Law the righteousness of God has been manifested, being witnessed by the Law and the Prophets,
22 even the righteousness of God through faith in Jesus Christ for all those who believe; for there is no distinction;
Romans 3:27 contrasts the “law of faith” with the ”law of works.” Paul’s point here is that the law the OT was always about faith. He uses the examples of faith from Abraham’s life in chapter 4 to illustrate his thesis in chapter 3.
When he says faith establishes the law, what he means is that because faith was always the message of the OT, those who believe in Jesus confirm (2Co. 13:1) or uphold (NRSV,NIV) or establish (KJV,NASB) the OT teachings about salvation by faith.
Paul then moves into chapter 4 to illustrate how the OT, through the experience of Abraham, taught salvation by faith, apart from works.
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