Michigan's only home losses under Harbaugh were Michigan State and Ohio State in 2015, which happened to be the only two home games in which Michigan was the lower-ranked team. The only home win by less than 10 was Wisconsin last year.... Meanwhile, Michigan State hasn't played an away game yet this year.
Michigan's defense should be able to dominate in this one. I don't think Michigan will run the ball very well, but if O'Korn looks like he did against Purdue, then the passing game should be productive, especially with 2 weeks to prepare. MSU's defense probably isn't as good as Florida's, and Michigan scored 26 in that game from their offense, alone. Avoiding and forcing turnovers will be critical, though. Special teams would also appear to be an advantage for Michigan.
All that said, Michigan always gets Sparty's best shot, so it will probably be closer than it should be.
30-13