How or if they are factual is open to interpretation according to Catholic teaching.
Not at all.
**For all the books which the Church receives as sacred and canonical are written wholly and entirely, with all their parts, at the dictation of the Holy Spirit; and so far is it from being possible that any error can coexist with inspiration, that inspiration not only is essentially incompatible with error, but excludes and rejects it as absolutely and necessarily as it is impossible that God Himself, the supreme Truth, can utter that which is not true. This is the ancient and unchanging faith of the Church, solemnly defined in the Councils of Florence and Trent, and finally and more expressly formulated by the [First] Council of the Vatican *(*
Pope Leo XIII encyclical Providentissimus Deus EB 124-125).
The historical-critical approach to Scripture scholarship does not consider Gospels (or any Scripture) as “made up to fool people.”
That is precisely what some of its adherents say (if in less honest terms). They say that the infancy accounts, the miracles and other significant accounts in the Old and New Testaments were basically invented by authors to make a point, or to provide Jesus with miracles and an origin to befit his status as Messiah. That is making things up to fool people. There is no getting round it.
If you think that, you have a gross misunderstanding of Scripture scholarship. If such is true, you might benefit from reading what the Pontifical Biblical Commission taught about the Interpretation of the Bible in the Church:
ewtn.com/library/curia/pbcinter.htm
Nothing in that document allows one to argue that the Apostles invented the infancy narratives, the miracles or teachings of Jesus. Nor does it attempt to contradict Providentissimus Deus or any of the statements of the Councils of the Church.
In fact the Pontifical Biblical Commission in 1964 declared
"After Jesus rose from the dead and his divinity was clearly perceived, faith, far from destroying the memory of what had transpired, rather confirmed it, because their faith rested on the things which Jesus did and taught. Nor was he changed into a ‘mythical’ person and his teaching deformed in consequence of the worship which the disciples from that time on paid Jesus as the Lord and Son of God. On the other hand, there is no reason to deny that the apostles passed on to their listeners what was really said and done by the Lord with that fuller understanding which they enjoyed, having been instructed by the glorious events of the Christ and taught by the light of the Spirit of Truth."
Where does the Catholic Church teach that these are historical accounts? Thanks for any (current, relevant) reference.
How about the Catechism of the Catholic Church?
105 God is the author of Sacred Scripture. "The divinely revealed realities, which are contained and presented in the text of Sacred Scripture, have been written down under the inspiration of the Holy Spirit."69
"For Holy Mother Church, relying on the faith of the apostolic age, accepts as sacred and canonical the books of the Old and the New Testaments, whole and entire, with all their parts, on the grounds that, written under the inspiration of the Holy Spirit, they have God as their author, and have been handed on as such to the Church herself."70
**106 God inspired the human authors of the sacred books. "To compose the sacred books, God chose certain men who, all the while he employed them in this task, made full use of their own faculties and powers so that, though he acted in them and by them, it was as true authors that they consigned to writing whatever he wanted written, and no more."71 **
107 The inspired books teach the truth. "Since therefore all that the inspired authors or sacred writers affirm should be regarded as affirmed by the Holy Spirit, we must acknowledge that the books of Scripture firmly, faithfully, and without error teach that truth which God, for the sake of our salvation, wished to see confided to the Sacred Scriptures."72
**126 We can distinguish three stages in the formation of the Gospels: **
1. The life and teaching of Jesus. The Church holds firmly that the four Gospels, “whose historicity she unhesitatingly affirms, faithfully hand on what Jesus, the Son of God, while he lived among men, really did and taught for their eternal salvation, until the day when he was taken up.”
2. The oral tradition. "For, after the ascension of the Lord, the apostles handed on to their hearers what he had said and done, but with that fuller understanding which they, instructed by the glorious events of Christ and enlightened by the Spirit of truth, now enjoyed."100
3. The written Gospels. "The sacred authors, in writing the four Gospels, selected certain of the many elements which had been handed on, either orally or already in written form; others they synthesized or explained with an eye to the situation of the churches, the while sustaining the form of preaching, but always in such a fashion that they have told us the honest truth about Jesus."101
A good Catholic Answers article on this subject:
catholic.com/thisrock/2004/0405fea1.asp
catholic.com/thisrock/2004/0407fea3.asp