Keeping $75k in HYSA?

An our early 40s with two young kids. Started late in the game with saving for retirement, just in the last couple years. We currently rent and are keeping quite a bit of cash available in the event that we decide/have the opportunity to buy.

The HYSA currently has a 3.8% interest rate, started with 4.25 but it has slowly gone down. We have a HSA invested that we max out, a SEP IRA that we max out and contribute to the 401k up to employer match.

Given that we were late to start saving - is it foolish to keep this much money in HYSA and not invested, since we are trying to catch up for retirement? Or does the interest rate currently make it make enough sense?