Freud and literature

From the reading, I've learned that the latent dream reflects our wish and desire, and they're projected onto manifest dream. Therefore, trying to make a connect manifest dream to latent dream would be interpreting the dream. Freud notes that most of the time, what's manifested in dreams may not seem related to the latent dream thoughts at all:
"just so does the dream-work succeed in expressing some of the contect of the latent dream-thoughts by peculiarities in the form of the manifest dream - by its clarity or obscurity, by its division into several pieces, and so on" (I think he calls this "dream distortion")
Also, Freud defines the work of interpretation as follows:
"The work which proceeds in the contrary direction, which endeavours to arrive at the latent dream from the manifest one"
To me, this really sounds like what we did in class when we were reading Waiting, (or when we read novels in general) like why did magistrate do this and do that? Trying to find out the motive of a character's actions, I find it very similar to dream interpretation. It is so in the sense that sometimes the motive is very clear, and sometimes it's not, so we need to investigate.