Step 1: Assume a variable point on the parabola.
Let
\[
P(h,\;16-h^2)
\]
be any point on the parabola.
The fixed point is
\[
A(a,0).
\]
Step 2: Find the midpoint.
Let the midpoint be
\[
M(x,y).
\]
Using the midpoint formula,
\[
x=\frac{a+h}{2},
\qquad
y=\frac{16-h^2}{2}.
\]
From the first equation,
\[
h=2x-a.
\]
Step 3: Obtain the locus.
Substituting
\[
h=2x-a
\]
into the equation for \(y\),
\[
y
=
\frac{16-(2x-a)^2}{2}.
\]
Hence,
\[
2y
=
16-(2x-a)^2,
\]
or
\[
(2x-a)^2
=
16-2y.
\]
This is the equation of a parabola.
Therefore,
\[
\boxed{\text{The locus is a parabola}.}
\]
Thus,
\[
\boxed{(D)}
\]
is the correct answer.