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So the Catholic Church has always taught that literal sense of a text is that meaning which the author intends to communicate, and that every passage of scripture has a literal sense. The Church encourages that this literal sense is something biblical interpreters must carefully discern; it may not be immediately obvious. Textual criticism, literary criticism, and linguistic knowledge are important aids. Sometimes the writers are referring to historical events, sometimes not. Sometimes they are using figurative language, sometimes not. What the biblical authors intend to communicate is true and free of error, whether or not that truth refers to historical fact.
“To search out the intention of the sacred writers, attention should be given, among other things, to ‘literary forms.’ For truth is set forth and expressed differently in texts which are variously historical, prophetic, poetic, or of other forms of discourse. The interpreter must investigate what meaning the sacred writer intended to express and actually expressed in particular circumstances by using contemporary literary forms in accordance with the situation of his own time and culture. For the correct understanding of what the sacred author wanted to assert, due attention must be paid to the customary and characteristic styles of feeling, speaking and narrating which prevailed at the time of the sacred writer, and to the patterns men normally employed at that period in their everyday dealings with one another.” (Vatican II Dogmatic Constitution on Divine Revelation)
This is not a new, “modern” idea in the Church. Far from it. If you read St. Augustine or St. Thomas Aquinas, you will find that they also teach that the literal sense of scripture is what the biblical writers actually intended to communicate, even when they used figurative language or nonhistorical genres to communicate it.
St. Augustine wrote in Christian Doctrine, for example, “Whoever takes another meaning out of Scripture than the writer intended, goes astray…” Whatever we may now think of Augustine’s particular interpretations here or there, his concern was to arrive at the meaning the author intended.
In the first section of his Summa Theologica, St. Thomas Aquinas talks about many possible levels of meaning in scripture (literal and spiritual senses), because God has the power “to signify His meaning, not by words only (as man also can do), but also by things themselves.” In other words, not only may God’s words have meaning, but the people, events, etc., that the words represent may also have meanings. In explaining the different senses of scripture, Thomas defines the literal sense thus: “[the] first signification, whereby words signify things, belongs to the first sense, the historical or literal… the literal sense is that which the author intends… The ‘parabolical sense’ is contained in the literal, for by words things are signified properly and figuratively. Nor is the figure itself, but that which is figured, the literal sense. When Scripture speaks of God’s arm, the literal sense is not that God has such a member, but only what is signified by this member, namely operative power. Hence it is plain that nothing false can ever underlie the literal sense of Holy Scripture.”
Even many Protestant writers, like Tyndale, have taught the same as the Catholic Church regarding what the “literal sense” means: “the scripture uses proverbs, similitudes, riddles, or allegories, as all other speeches do; but that which the proverb, similitude, riddle or allegory signifieth, is ever the literal sense, which thou must seek out diligently.”
So in answer to the question posed by the subject of this thread, YES, Catholics do believe that the literal sense of scripture is something to be eagerly sought. The literal sense of scripture, that which the biblical writers actually intended to communicate, is inspired by God and inerrant. It is the foundation of authentic biblical understanding; authentic spiritual senses of scripture (typological, moral, anagogical) must be rooted in the literal sense and cannot contradict it.
Whether the literal sense of scripture refers to historical events depends on which passage is being considered. Some biblical texts make historical assertions while others may not. When the author intends to relate history (for example, Jesus was crucified under Pontius Pilate), the history is true. When the author does not intend to relate history (Judith, for example, is generally regarded as a novel), he is still speaking truly, but the truths are not historical.

“To search out the intention of the sacred writers, attention should be given, among other things, to ‘literary forms.’ For truth is set forth and expressed differently in texts which are variously historical, prophetic, poetic, or of other forms of discourse. The interpreter must investigate what meaning the sacred writer intended to express and actually expressed in particular circumstances by using contemporary literary forms in accordance with the situation of his own time and culture. For the correct understanding of what the sacred author wanted to assert, due attention must be paid to the customary and characteristic styles of feeling, speaking and narrating which prevailed at the time of the sacred writer, and to the patterns men normally employed at that period in their everyday dealings with one another.” (Vatican II Dogmatic Constitution on Divine Revelation)
This is not a new, “modern” idea in the Church. Far from it. If you read St. Augustine or St. Thomas Aquinas, you will find that they also teach that the literal sense of scripture is what the biblical writers actually intended to communicate, even when they used figurative language or nonhistorical genres to communicate it.
St. Augustine wrote in Christian Doctrine, for example, “Whoever takes another meaning out of Scripture than the writer intended, goes astray…” Whatever we may now think of Augustine’s particular interpretations here or there, his concern was to arrive at the meaning the author intended.
In the first section of his Summa Theologica, St. Thomas Aquinas talks about many possible levels of meaning in scripture (literal and spiritual senses), because God has the power “to signify His meaning, not by words only (as man also can do), but also by things themselves.” In other words, not only may God’s words have meaning, but the people, events, etc., that the words represent may also have meanings. In explaining the different senses of scripture, Thomas defines the literal sense thus: “[the] first signification, whereby words signify things, belongs to the first sense, the historical or literal… the literal sense is that which the author intends… The ‘parabolical sense’ is contained in the literal, for by words things are signified properly and figuratively. Nor is the figure itself, but that which is figured, the literal sense. When Scripture speaks of God’s arm, the literal sense is not that God has such a member, but only what is signified by this member, namely operative power. Hence it is plain that nothing false can ever underlie the literal sense of Holy Scripture.”
Even many Protestant writers, like Tyndale, have taught the same as the Catholic Church regarding what the “literal sense” means: “the scripture uses proverbs, similitudes, riddles, or allegories, as all other speeches do; but that which the proverb, similitude, riddle or allegory signifieth, is ever the literal sense, which thou must seek out diligently.”
So in answer to the question posed by the subject of this thread, YES, Catholics do believe that the literal sense of scripture is something to be eagerly sought. The literal sense of scripture, that which the biblical writers actually intended to communicate, is inspired by God and inerrant. It is the foundation of authentic biblical understanding; authentic spiritual senses of scripture (typological, moral, anagogical) must be rooted in the literal sense and cannot contradict it.
Whether the literal sense of scripture refers to historical events depends on which passage is being considered. Some biblical texts make historical assertions while others may not. When the author intends to relate history (for example, Jesus was crucified under Pontius Pilate), the history is true. When the author does not intend to relate history (Judith, for example, is generally regarded as a novel), he is still speaking truly, but the truths are not historical.
The Catholic Church does take an official position on the historicity of some Bible stories.The Church does not have an “official” position on the literal historicity of these or any other Bible stories.