It's on the rise:
Right now, [John] Freeman [editor of Granta's new honor issue] says, if you define horror widely enough, it’s everywhere. “We live in a culture absolutely saturated with violence,” he says, whether it’s in the form of zombies and vampires or in conflict reporting or memoirs of illness. To quarantine horror in a genre is to ignore how much of the culture revolves around things we’re afraid of, he says. And the ubiquity of horror, and the crossover of literary writers into the genre, Freeman says, is nothing to despair over. “It’s a way to sublimate the fears we have as humans, and it shows a great belief in the power of narrative to both sublimate those fears and to help us ask the questions they raise.”
The Dish 