Though we still battle flesh, the entire person and works is declared righteous and holy through faith...

I do not know how to change in the least what I have previously and constantly taught about justification. Namely, that through faith, as St. Peter says, we have a new and clean heart, and God will and does account us entirely righteous and holy for the sake of Christ, our Mediator. Although sin in the flesh has not yet been completely removed or become dead yet He will not punish or remember it....The entire individual, both his person and his works, is declared to be righteous and holy from pure grace and mercy, shed upon us and spread over us in Christ.
~BOC, SA, III, XIII, 1-2