Freemasonry's self-awareness of its history has varied over time. Most educated Freemasons today don't believe the origin myths to be anything other than entertaining allegory.
A general overview of the topic: http://www.themasonictrowel.com/Articles/History/origin_file...
Check out this bit on "Operative" vs "Speculative" Masonry, it addresses your question pretty well:
Interesting, so it's not an ancient society but a modern one fully cognisant of its fiction? I thought Masonry was founded on a real belief that it was a successor through time of a group of actual people building an actual temple.
Is it in the records of your society who created the fiction and why they based it on Jewish history?
It's funny, it's kinda the reverse of Welsh culture where the current form of Eisteddfod and druidic tradition is verifiably an invention of 20th C but everyone behaves as if it's pre-Roman Celtic history.