That source also claims that the Home button – still a physical one in this generation – will feature haptic feedback to simulate a click, using the same approach as Force Touch. This is consistent with a much earlier report suggesting a non-moving button. For that to be the case, Apple could need to use a different physical button for a reset, perhaps one of the volume buttons.
Notably, this corroborates a report from back in April that said Apple would move from a push Home button to a touch sensitive 'direct induction' Home button that will provide haptic feedback (vibration) when pressed.
Apple isn't expected to unveil the iPhone 7 until September but you can follow iClarified on Twitter, Facebook, Google+, or RSS for updates.