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A Literate Church: The state of Catholic Bible study today [article from America: The National Catholic Weekly]
...while fewer believers know much about the Bible, one-third of Americans continue to believe that it is literally true, something organizers of the Synod on the Word of God called a dangerous form of fundamentalism that is “winning more and more adherents…even among Catholics.” Such literalism, the synod’s preparatory document said, “demands an unshakable adherence to rigid doctrinal points of view and imposes, as the only source of teaching for Christian life and salvation, a reading of the Bible which rejects all questioning and any kind of critical research”....Should We Take the Bible Literally or Figuratively? [article from Catholic Exchange]
Some may write off the whole Bible as being merely symbolic or allegorical, while others take every word as the kind of literal truth you get when you say something like, "The fire is hot." Symbolically, that same fire represents the power, warmth, and enthusiastic fervor poured into Christians by the Holy Spirit. You can approach the flame literally or figuratively, but either way, the fire is "true"....Unlike modern libraries that separate fiction from nonfiction and both genres from poetry, a single book of the Bible may contain an eclectic mix of Godly commands, historical events, poetic lines, and allegorical tales. Between genres, thin lines may overlap, but don't let them trip you up.
The Catechism of the Catholic Church
THE HOLY SPIRIT, INTERPRETER OF SCRIPTURE
109 In Sacred Scripture, God speaks to man in a human way. To interpret Scripture correctly, the reader must be attentive to what the human authors truly wanted to affirm, and to what God wanted to reveal to us by their words.75
110 In order to discover the sacred authors' intention, the reader must take into account the conditions of their time and culture, the literary genres in use at that time, and the modes of feeling, speaking and narrating then current. "For the fact is that truth is differently presented and expressed in the various types of historical writing, in prophetical and poetical texts, and in other forms of literary expression."76
111 But since Sacred Scripture is inspired, there is another and no less important principle of correct interpretation, without which Scripture would remain a dead letter. "Sacred Scripture must be read and interpreted in the light of the same Spirit by whom it was written."77
The Second Vatican Council indicates three criteria for interpreting Scripture in accordance with the Spirit who inspired it.78
112 1. Be especially attentive "to the content and unity of the whole Scripture". Different as the books which compose it may be, Scripture is a unity by reason of the unity of God's plan, of which Christ Jesus is the center and heart, open since his Passover.79
The phrase "heart of Christ" can refer to Sacred Scripture, which makes known his heart, closed before the Passion, as the Scripture was obscure. But the Scripture has been opened since the Passion; since those who from then on have understood it, consider and discern in what way the prophecies must be interpreted.80
113 2. Read the Scripture within "the living Tradition of the whole Church". According to a saying of the Fathers, Sacred Scripture is written principally in the Church's heart rather than in documents and records, for the Church carries in her Tradition the living memorial of God's Word, and it is the Holy Spirit who gives her the spiritual interpretation of the Scripture (". . . according to the spiritual meaning which the Spirit grants to the Church"81).
114 3. Be attentive to the analogy of faith.82 By "analogy of faith" we mean the coherence of the truths of faith among themselves and within the whole plan of Revelation.
The senses of Scripture
115 According to an ancient tradition, one can distinguish between two senses of Scripture: the literal and the spiritual, the latter being subdivided into the allegorical, moral and anagogical senses. The profound concordance of the four senses guarantees all its richness to the living reading of Scripture in the Church.
116 The literal sense is the meaning conveyed by the words of Scripture and discovered by exegesis, following the rules of sound interpretation: "All other senses of Sacred Scripture are based on the literal."83
117 The spiritual sense. Thanks to the unity of God's plan, not only the text of Scripture but also the realities and events about which it speaks can be signs.
1. The allegorical sense. We can acquire a more profound understanding of events by recognizing their significance in Christ; thus the crossing of the Red Sea is a sign or type of Christ's victory and also of Christian Baptism.84
2. The moral sense. The events reported in Scripture ought to lead us to act justly. As St. Paul says, they were written "for our instruction".85
3. The anagogical sense (Greek: anagoge, "leading"). We can view realities and events in terms of their eternal significance, leading us toward our true homeland: thus the Church on earth is a sign of the heavenly Jerusalem.86