Analysts at Cowen and Company cite "field checks" which reveal that Apple will replace the physical Home button with a new button that sits flush with the rest of the phone. The button uses Force Touch and haptic feedback to replicate the sensation of being depressed.
Notably, this lines up with a leaked photo from earlier this month that claimed to show a touch sensitive Home button that sits flat with the rest of the bezel.
In April, DigiTimes predicted that Apple would move from a push Home button to a touch sensitive 'direct induction' Home button that provides haptic feedback (vibration) when pressed. Just yesterday that prediction was reiterated by a 9to5Mac source.
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